GMA Network Inc. said on Monday net income jumped 116 percent in the first six months of the year on the back of higher political and regular advertising.
The Gozon-led broadcasting company, which airs on free TV channel 7, said net profit amounted to P2.38 billion in the January-to-June period from P1.09 billion in the same period last year.
“It definitely exceeded our expectations for the year. In fact, our net income for the first semester of 2016 is already higher than our bottom line for 2015 by at least P250 million,” GMA chairman and chief executive Felipe Gozon said.
“We are hoping that this momentum will continue into the remaining quarters,” he added.
The company was sticking to its P3-billion profit guidance this year.
The network’s consolidated revenues for the six-month period rose 32 percent to P8.76 billion on the back of election-related earnings, along with the sustained growth in recurring advertisements.
Combined airtime sales reached a record P8.065 billion, a 33-percent increase over last year. Discounting the impact of political ads, airtime revenues still grew by 10 percent.
Revenues from political advertisements amounted to P1.5 billion in the first six months of the year.
GMA Channel 7’s airtime revenues amounted to P7.57 billion, up 33 percent from last year’s P5.68 billion. Radio operations posted airtime revenues of P296 million, higher by 41 percent from P209 million.
Gozon also said the company planned to roll out digital terrestrial television service by end of the year or first quarter of next year.
“I’m expecting we can complete our plans and study before the end of the year,” Gozon said, adding the company was in talks with Globe Telecom Inc . and PLDT Inc. to be their partner.
GMA earlier said it would invest between P1 billion and P1.5 billion to roll out DTT technology within the year.
Gozon had said its DTT setop box would be “very much cheaper” compared with rival ABS-CBN Corp. “considering that the people cannot afford very expensive devices.”
Rival ABS-CBN in February 2015 launched its DTT setop box costing P1,999 per unit.
