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Tuesday, April 16, 2024

GMA’s profit declines 9% to P2.3b on weak ad revenues

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GMA Network Inc. said net income in 2018 fell 9 percent mainly because of weak advertising revenues. 

The broadcasting company registered a net profit of P2.32 billion last year from P2.55 billion in 2017.

The company’s consolidated revenues dropped 2 percent to P15.2 billion last year from P15.6 billion in 2017. 

Airtime revenues amounted to P13.44 billion, down 3 percent from P13.86 billion in 2017.

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“The reduction from [lower airtime revenue] was partly cushioned by the climb in other revenue sources, particularly from subsidiaries’ operators and other businesses, which reflected a mined increase of P61 million equivalent to 4 percent,” GMA said. 

On a per platform basis, GMA-7 accounted for the lion’s share in its revenue pie, putting in more than three quarters of the consolidated top line. Compared with prior year’s sales, the channel posted a reduction of 4 percent in airtime sales, arising from the contraction in advertising spending by major business partners. 

GMA News TV 11 also wrapped up the year 2018 with sales lower by 6 percent. These were partly mitigated by the boost in revenues generated by the radio business, which bagged the second largest share in airtime revenues. Radio operations nationwide booked an 11-percent increase revenue compared to 2017. 

Regional TV operations also recorded a 5-percent rise in sales from a year ago. 

The company’s total consolidated operating expenses amounted to P11.99 billion last year, down 1 percent from a year ago. 

Ratings-wise, GMA continued to win against ABS-CBN in the nationwide urban TV ratings in 2018 with a 40.8 percent average people audience share compared with the main competitor’s 37.5 percent. 

GMA’s 47.6-parent people audience share average in Mega Manila was way ahead of its rival’s 28.6 parent. The network likewise posted a double-digit margin in TV audience share over ABS-CBN in urban Luzon. 

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