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Thursday, March 28, 2024

GMA Network earned over P6b in 9 months

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GMA Network Inc. said Wednesday net income rose 54 percent in the first nine months from a year ago, on the back of higher revenues from traditional advertising and political advocacies.

The broadcast network led by Felipe Gozon said net income amounted to P6.01 billion from January to September, higher than the P3.91 billion it earned in the same period last year.

“With GMA’s broadcasting operations currently enjoying the widest reach in the free-to-air arena, consolidated sales of the company for the past nine months breached the P16 billion mark at P16.56 billion up 31 percent compared to the same period last year,” GMA said.

Advertising revenues comprised 93 percent of the total revenue pie and was the driver for the considerable improvement in the top line—both through airtime sales and through the company’s presence in the online landscape.

“This year’s top line growth was influenced by the improvement in both average rate per minute as well as total minutes load,” GMA said.

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“The incremental minutes this year was buoyed by some advertisers shifting to GMA when ABS-CBN went off-air staring May last year owing to the expiration of its franchise and its eventual non-renewal,” it said.

GMA said political advocacies already started to trickle in, thus providing additional sources of revenues for the company.

Advertising revenues from online/digital also played upbeat sales, finishing off the nine-month period this year with an improvement by 51 percent in its top line.

“With the changing landscape in consumer/viewer preferences and habits as well as the trends in technology, this platform becomes vital in establishing the presence of the company as an equally dominant player in this field,” GMA said.

International operations lagged behind last year’s top-line performance, ending three quarter of 2021 with a reduction in sales.

Merchandise sales from January to September reached P392.69 million mainly from GMA Affordabox with more than 600,000 units of the set-top box sold during the period and from sales of GMA Now.

Consolidated operating expenses from January to September amounted to P8.71 billion, up by 24 percent from last year’s P7.05 billion.

“Direct cost was the main driver for the escalation in expenditures owing to the back to [new] normal activities of the company,” GMA said.

“Even as the pandemic dragged up to this day and different levels of community quarantines still persisted, the network has resumed production of original programs, seeing the need to deliver superior entertainment to its audience,” it said.

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