GMA Network says Q1 net income dips 46%, cites absence of election spending 

 

Despite the weak first quarter turn out, GMA Chairman and CEO Felipe L. Gozon said the management expects a double-digit growth in recurring revenues or slightly above the consolidated revenues last year.

 

"Without the political ads, it will be double digit in the recurring revenue basis. With the pol ads, just a little bit ahead than 2013," he said.

 

Last year, net revenues rose 7 percent to P12.95 billion from P12.089 billion a year earlier as airtime revenues were boosted by election-related advertisements. This drove net earnings to grow 3 percent to P1.667 billion in 2013 from P1.617 billion a year earlier.

'Better numbers'

 

“We expect better numbers in the next few months as our top advertisers have already committed their placements,” Gozon said.

 

"The management also plans to schedule programs that are going to either increase our ratings or win the ratings.

 

“Moreover, we are confident that our diverse line-up of upcoming shows will help us regain our lead in nationwide ratings and boost our earnings for the coming months,” Gozon added.

 

Some programs will be shortened, cancelled and replaced as part of cost-efficiency measures.

 

"At the moment we are undertaking a cost reduction analysis in everything that we do in this company as production cost is the highest percentage of our cost," Gozon noted.

 

This year, GMA Network allotted about P500 million to capital expenditures – on top of the some P400-million carry-over capex from last year – to upgrade production facilities, content distribution and signal reception in the rural areas., president and COO Gilberto Duavit told reporters in the same briefing.

 

"By the end of the year... we will be fully high-definition capable, with the ability to capture or acquire images alternatively, either on standard or high-def, depending on purpose of content," Duavit said.

 

"There are further upgrades on the signal with greater focus on rural audiences, given that the recent introduction of 'rural tam,' or rural audiences, are now part of the national survey, which is roughly 46 percent of the total," he added.

 

On May 19, the network is paying out P1.312 billion or 27 centavos per share in cash dividends to shareholders. – VS, GMA News