GMA Network’s H1 net income climbs 4% to P1.4B

Broadcast giant GMA Network Inc. saw its bottom line grow in the first half of 2020 on the back of lower operation costs despite the decline in sales during the period.

In a regulatory filing, the Kapuso network reported a consolidated net income of P1.408 billion, up 4% or a P52-million increase from P1.356 billion in the same period in 2019.

The first semester bottom line growth was realized despite the 15% decline in consolidated revenues to P6.751 billion from P7.914 billion, weighed by general slump in economic activities due to the COVID-19 pandemic and the absence of election-related placements.

The decline in gross sales was offset by lower operating expenses amounting to P4.736 billion, down 21% from P6.011 billion a year earlier. The lower operating expenses was attributed to the implementation of the enhanced community quarantine (ECQ), which “necessitated corresponding modifications in the Company’s operations – in particular the suspension of tapings of in-house produced programs.”

“With the guidelines set on mass gatherings and imposition of social distancing, tapings of fresh episodes particularly for soaps became restricted. Programming grid of Ch-7 and GNTV mostly aired replays of Entertainment programs and reruns of canned series,” GMA Network said. 

“Only News and select Public Affairs programs continued to air fresh episodes to fulfill the Network’s responsibility of delivering comprehensive and updated news and information nationwide,” it said.

The decline in first half revenues was partly cushioned by the improvement in online advertising sales, particularly from the company’s websites GMA News Online and GMA Entertainment Online, which grew by 23% from a year ago.

“The shift in advertising placements resulting from the closure of the Company’s biggest and closest competitor (ABS-CBN) due to the expiration of its free-to-air broadcast franchise in early May, provided some incremental revenues,” GMA Network said.

GMA Network Chairman and CEO Felipe L. Gozon earlier said that the company is “debt-free” as of end-March, “this demonstrates our ability to balance ratings growth with sound financials.” —KG, GMA News