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GMA Network caps off 2015 with 111% increase in net income


GMA Network, Inc. (GMA) ended 2015 with remarkable results after generating a net income of P2.126 billion, a 111 percent improvement from the P1.010 billion recorded in 2014.

Consolidated revenues stood at P13.727 billion, up by 15 percent from the previous year’s P11.983 billion.

The increase was attributed to the sustained growth in airtime revenues particularly in regular advertisements across the year, totaling P12.381 billion, 16 percent higher from a year ago.

Without the impact of political advocacies, airtime revenues would still be ahead by 12 percent.

“Our financial performance in 2015 was a result of multiple factors but mostly from our reclaimed lead in nationwide ratings and continued dominance in Urban Luzon and Mega Manila,” said GMA Network Chairman and CEO Felipe L. Gozon.

Based on official data from the industry’s trusted ratings service provider Nielsen TV Audience Measurement, GMA prevailed over rival networks in National Urban Television Audience Measurement (NUTAM) with 35.4 percent household shares against ABS-CBN’s 34.9 percent and TV5’s 9.2 percent for the entire 2015.

Meanwhile, the company’s total operating expenses (OPEX) grew by only 2 percent to P10.745 billion, mainly due to higher production cost in an aim to strengthen content quality on different platforms.

With the increase in earnings combined and the minimal growth in the total OPEX, EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2015 settled at P4.641 billion, 59 percent higher than in 2014.

“We are determined to replicate, if not surpass, what we were able to achieve last year this 2016, as we remain committed to strengthening our core business and other new and emerging ventures,” Gozon said.

Top-rating GMA Channel 7 accounted for majority of the increase in airtime revenues, registering a 16 percent improvement over 2014. 

The company’s radio business, on the other hand, posted a year-on-year increase of 15 percent, while GMA News TV climbed 24 percent, representing the highest sales in the history of the country’s leading news channel.

Other revenue streams including production and subsidiaries operations recorded a 3 percent improvement in between periods with wholly owned subsidiaries GMA New Media, Inc. (NMI), which manages and operates the Network’s Internet play, and GMA Worldwide, Inc. (GWI), which syndicates Kapuso programs to the international market, partly accounting for the increase.

Backed by the continued success of GMA’s online platforms as well as recent tie-ups with major over-the-top (OTT) operators iFlix and HOOQ, NMI ended 2015 with a 50 percent increase in total advertising revenues over 2014.

On the other hand, GWI exceeded 2014’s sales by 34 percent as it sold 4,003 program hours in various countries across the Asia Pacific region and beyond.

The Network also continued to engage its audience online with leading local news website GMA News Online (www.gmanews.tv) breaching the one million page views mark, while continuing to grow its number of unique browsers, according to data from Effective Measure.

Similarly, GMA’s entertainment website (www.gmanetwork.com/entertainment) registered 652 million page views, beating long-time rival ABS-CBN.com’s 606.6 million by a whopping 45.4 million. - GMA News

Tags: gma, gma7, gmanetwork