GMA Network's 9-mth net profit P1.55B, down 11% yr/yr

GMA Network, Inc., the country's most profitable and leading broadcasting firm, said Tuesday its nine-month net profit dropped 11 percent, dragged by production cost at affiliate station QTV. The company reported a net income of P1.55 billion in the first nine months. It did not provide a comparative figure. It reported a nine-month profit of P1.7 billion last year. "The net income of the company for the first nine months was 11 percent lower than the same period last year as production cost of start-up business, QTV, bear down on the bottom line," GMA said in a statement. The network, however, posted consolidated gross revenues of P8.09 billion for the nine month period, 10 percent higher than its P7.4 billion revenues in 2005, on account of steady airtime sales from Channel 7 and additional subscription revenues from its international Pinoy TV operations. GMA Pinoy TV, which is available in the US (LA, San Francisco , San Diego , Sacramento, and Cerritos ), Middle East , Malaysia , Japan , Guam, and Saipan , continued to increase its subscriber base. As of September 2006, GMA Pinoy TV already has more than 111,000 subscribers. Operating expenses jumped 30 percent to P4.24 billion in nine months primarily due to higher production cost and expenses related to the new businesses. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at P3.09 billion for the nine month period, 0.6% higher than the previous year. As of September this year, GMA has maintained its lead in both Metro Manila and Mega Manila TV ratings in all day parts, including the highly contested primetime block. GMA has kept its stronghold of the TV ratings lead based on third quarter data from AGBNMR Philippines, posting a Mega Manila total day ratings average of 17.6 points versus top rival ABS-CBN's 13.8. The network said it was spending more than P168 million for the upgrade of its transmitters facilities in various key areas in the provinces to achieve wider coverage and provide even higher signal levels. The transmitter facilities to be upgraded include those that service Baguio, Dagupan City, La Union, Pangasinan, Tarlac, Nueva Ecija, Batangas, Lipa, Northern Mindoro, Naga, Central Camarines Sur, General Santos, Saranggani, South Cotabato and Davao del Sur. A new transmitter facility will be constructed to provide dedicated coverage of Cagayan de Oro City and Misamis Oriental. These upgrades include new transmitting equipment, from transmitters to antenna systems and building/tower rehabilitation/construction. The facilities will be provided with the essential support equipment for quality, reliable and continuous broadcast operation. The network expects completion of these projects before the year ends until the first quarter of 2007. GMA will also augment its existing studio facilities in Cebu, Iloilo and Davao for better quality and more pleasing locally flavored programs. On top of this, it will also be putting up TV/Radio facilities in Dagupan City. Two huge state-of-the art studios are currently being constructed within the network’s Quezon City compound. GMA Network is the parent company of www.gmanews.tv - GMANews.TV