May 15 2019
(Quezon City, Philippines – May 15, 2019) – Broadcast giant GMA Network, Inc. is looking forward to a better financial performance this 2019 and welcomes the digital disruption with open arms as Chairman and CEO Felipe L. Gozon addressed the public during its Annual Stockholders’ Meeting today.
Despite the industry-wide reduction in advertising spending for the most part of 2018, the Company’s significant improvement in the fourth quarter revenue was able to cushion the deficits earlier in the year. In 2018, GMA Network posted consolidated revenues of P15.24 billion, or down by only 2 percent versus 2017.
Moreover, the Network’s efficient cost management minimized its total operating expenses (OPEX) at P12 billion or 0.6 percent less than 2017’s spending.
EBITDA (earnings before interests, taxes, depreciation, and amortization) in 2018 ended at P4.82 billion – 8 percent lower versus the previous year. GMA’s consolidated net income after tax last year was P2.32 billion or 9 percent lower compared to 2017.
On the other hand, for the first quarter of 2019, the Network’s consolidated revenues have reached P3.80 billion, or 14 percent higher versus the same period in 2018. OPEX for Q1 2019 ended at P2.81 billion, which increased by 4 percent from last year. GMA’s consolidated net income after tax in the first three months of 2019 soared by 69 percent at P721.76 million compared to 2018.
“While the network experienced slight declines in revenues in 2018, I am confident that this year will bring better financial results because of election-related revenues as well as those from our recurring advertising sales. We target to increase our 2019 revenues by 12 percent,” said GMA Network Chairman and CEO Felipe L. Gozon.
The Kapuso Network, which remained to be the country’s number 1 television station in 2018, still managed to be on top of the ratings competition in Q1 2019. Based on data from Nielsen TV Audience Measurement, GMA posted an average total day people audience share of 37.4 percent in NUTAM compared to ABS-CBN’s 35.4 percent. The Network similarly maintained a double-digit advantage both in its bailiwick areas Urban Luzon and Mega Manila during the said period.
The Network is currently in the final stretch of preparations for the launch of MyGMA Go, its mobile Digital Terrestrial Television (DTT) service that will revolutionize content consumption habits by combining digital TV viewing and the fun elements of mobile interactivity.
GMA is set to launch an affordable and compact end-user device that can act as a digital TV receiver when connected to an Android smartphone. Complimentary to this device is a mobile application that can be downloaded from the Google Play Store where users can watch GMA’s exclusive channels that will include an Asian telenovela channel, Korean music and variety channel, and a concert channel, and other free-to-air channels without a need for an active Internet connection.
To further enhance TV viewing experience, users can also enjoy many other features if they have an active Internet connection such as streaming of GMA’s online videos and messaging with friends and Kapuso artists, among others. All these exciting features will be seamlessly integrated within the mobile application and can be accessed even while watching the live TV channels.
The proprietary technologies that include hardware and software solutions for MyGMA Go have been the brainchild of the Network’s technology arm and future-proofing agent, GMA New Media, Inc. (GMA-NMI) since the mid-2000s. These have been patented with both the local and international Intellectual Property Organization (IPO).
Marketing and distribution plans are underway for the launch of MyGMA Go, as manufacturing of the end-user devices from China will be done in late Q2