GMA Network revenue up 15% at P3.766 billion in Q1

GMA Network Inc. on Monday reported a revenue increase of 15 percent to P3.766 billion in the first quarter of 2017 from P3.263 billion a year earlier.

In a briefing at the company's headquarters in Quezon City, the company said, however, that net income slipped by 17 percent to P842 million from P1.013 billion in the absence of political ads.

"Even without political ads, we are tracking a stronger year financially and we expect to achieve our growth targets in 2017," GMA Network Chair and CEO Felipe L. Gozon said.

Excluding political ads, the network would have generated a 15 percent improvement in airtime revenue in the first quarter.

The company targets P3.9 billion of net income this year, in light of corporate earnings results in the first quarter.

After the national elections last year, the company is expected to register recurring revenue for the rest of 2017.

"As of today, our sales in Channel 7 are only 11 percent behind on the recurring as of last year. Therefore, we will exceed the recurring sales this month over last year," Gozon said.

GMA International, the business unit that manages the distribution and operation of the international channels, recorded a 9 percent increase in revenue from subscription or licensing and advertising.

Technology arm GMA New Media Inc. posted a double-digit increase in both revenue and income.

"GMA New Media Inc. (NMI) closed the quarter with a remarkable performance, delivering a consolidated revenue growth of 63 percent and a net income increase of 421 percent," the network said.

Flagship international channel GMA Pinoy TV posted a 6 percent increase in worldwide viewers to 1.8 million.

Viewership of GMA Life TV increased by 19 percent to 800,000, while GMA News TV International posted a 63 percent increase in viewers worldwide.

"Assuming we are correct, we will continue to be ahead until December of 2017," Gozon said.

GMA Network on Monday paid out P3.548 billion worth of dividends to shareholders, equivalent to P0.73 per share. — VDS, GMA News