GMA Network Inc. said it expects “better” financial results in the second semester, after registering a lower net profit in the first six months.
“In spite of challenging market conditions, GMA Network was still able to breach the one billion-peso mark in terms of net income for the first half of 2018. We look forward to seeing the rest of the year with better results for our company,” GMA chairman and chief executive Felipe Gozon said.
The broadcast network posted a net income of P1.23 billion in January to June, down 21 percent from P1.55 billion it earned in the same period last year.
GMA said net income in the second quarter amounted to P805.68 million, higher than P710.31 million in the same period last year.
Revenues dropped 6 percent to P7.24 billion from P7.69 billion last year.
Consolidated airtime sales comprised 88 percent of total revenues and reached P6.39 billion, down 7 percent from last year’s P6.86 billion.
“This year saw a notable contraction in television placements from advertisers, which was felt across the broadcasting industry,” GMA said
Mixed results were seen among airtime-revenue generating platforms, with radio and regional TV operations managing to pull ahead in their topline year-on-year, while Channel-7 and GNTV-11 had lukewarm sales.
Other revenue sources including international operations, subsidiaries, and other businesses tipped at P856 million and generated incremental revenues of P23 million. The segment made up 12 percent of the company’s total revenue pie.
Operating expenses amounted to P5.57 billion, up 0.5 percent from a year earlier.
“The escalation in general and administrative expenses was mitigated by the drop in production spending,” GMA said.
Production cost and talent fees which comprised 53 percent of total operating costs reached P2.92 billion, down 4 percent from P3.04 billion last year.
GMA said it maintained its leadership in the nationwide urban TV ratings in the second quarter, posting an average people audience share of 40.4 percent versus ABS-CBN’s 38.3 percent based on the official data from Nielsen TV Audience Measurement.