GMA Network says nine-month revenues up 4% on better advertising sales

Published November 18, 2013 1:19pm

Broadcast giant GMA Network Inc. expects better revenues as spending from advertisers re-surges in the fourth quarter to drive 2013 full-year net income to surpass earnings last year.

"Flat [earnings], that's already achieved. Ang tina-try namin is to exceed [income last year and this will be driven by] fourth quarter performance," chairman and CEO Atty. Felipe L. Gozon told reporters after a media and analyst briefing in Quezon City on Monday.

"Last year's fourth quarter net income was lower. This year, October to mid-November was able to exceed yung last year, close to P200 million," he added.

Last August, GMA executives said they see a full-year growth of around 10 percent on better ratings and lower programming costs.

But in the third quarter, total revenues slipped by 13 percent to P3.027 billion from P3.484 billion, driving net income for the period lower by 38 percent to P353.92 million.

Gozon said this was on the back of a decrease in total advertising industry spending during the quarter led... "but most of them are returning already."

"So we are targeting just a little more than what we did last year. In December, we are hoping to have a better performance because it is usually down, nagbabakasyon na ang mga tao," Gozon said.

In a statement Monday, GMA reported a 4 percent growth in revenues in the first nine months on improved advertising sales.

Consolidated revenues was at P9.752 billion compared to P9.33 billion last year, helped by the 5 percent jump in airtime revenues to P8.866 billion on account of improved advertising sales across major revenue platforms.

GMA Network on Monday reported a 4 percent growth in revenues in the first nine months on improved advertising sales.

In a statement, GMA said consolidated revenues was at P9.752 billion compared to P9.33 billion last year, helped by the 5 percent jump in airtime revenues to P8.866 billion on account of improved advertising sales across major revenue platforms.

The firm said the better revenues were offset by higher operating expenses of P7.601 billion mainly driven by the increase in production costs, ending the nine month period with P1.488 billion, a 6 percent decline from the previous year's P1.587 billion.

The increase in production costs is the company's means to constantly diversify and strengthen content.

General and administrative expenses, on the other hand, reported flat growth in between periods.

“We are hoping to surpass, if not equal, last year’s financial performance,” chairman and CEO Atty. Felipe L. Gozon was quoted as saying. “The last few months will be crucial in achieving our yearend target.”

GMA’s core businesses posted strong topline numbers with flagship Channel 7 growing its revenues by 4 percent, Regional TV by 37 percent, radio business by 9 percent local news channel GMA News TV by 14 percent.

GMA International, the business unit managing the distribution and operations of overseas channels, improved its revenues from licensing and advertising by 3 percent in peso terms.

GMA Worldwide Inc., the content acquisition and distribution subsidiary, sold over 2,310 hours of locally produced programs and movies to various countries such as Vietnam, Malaysia, Brunei, Singapore, Philippines, California, USA, Nigeria, Uganda and other African territories.

Under GMA Records, Julie Anne San Jose’s self-titled album earned a seven-time Platinum Record Award from its combined physical and digital sales reaching over 110,000 units for the period August 15, 2012 to August 31, 2013 while her carrier single “I’ll Be There,” received a five-time Platinum Digital Single Award as it earned over 766,000 downloads covering the same period.

Urban Luzon ratings

In the third quarter, GMA continued to lead in terms of ratings in the areas of Urban Luzon and Mega Manila based on the data of ratings service provider Nielsen TV Audience Measurement.

In Urban Luzon, GMA registered a 38.1 percent average total day household audience share, ahead by 7.8 points over ABS-CBN’s 30.3 percent and by 26.4 points over TV5’s 11.7 percent average.

Meanwhile, it also scored top ratings in its bailiwick Mega Manila with an average total day household audience share of 39.5 percent, up 11.2 points from ABS-CBN’s 28.3 percent and up 27 points from TV5’s 12.5 percent.

GMA is continuously strengthening its nationwide coverage with several transmission upgrades in the pipeline.

Through these efforts, GMA will be able to offer its entertainment and news and public affairs programs to more cities and municipalities all over the country. – Danessa Rivera/VS, GMA News

GMA News Online is a wholly-owned subsidiary of GMA New Media Inc., the new media arm of GMA Network Inc.

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