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Friday, March 29, 2024

GMA Network’s profit fell 72% to P602 million in Q1

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GMA Network Inc. said net income dropped 72 percent in the first quarter in the absence of political advertisements this year.

The broadcasting network said net income amounted to P602.3 million from January to March, lower than P2.12 billion it earned in the same period last year.

“Given the absence of the significant boost from political advocacies and advertisements following the national and local elections in 2022, GMA’s revenues by the end of three months this year registered a decline of P1.83 billion or 31 percent,” the network said

GMA said the absence this year of almost P1.5-billion worth of political advocacies and advertisements in the first quarter of 2022 factored considerably into the company’s top line-reduction.

The company posted total consolidated revenue of P3.69 billion in the first quarter, down from last year’s P5.52 billion.

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“Recurring sales which were also affected by consumer sentiments on the weak economy have also affected advertising placements of the company’s volume accounts which are mainly fast-moving consumer goods conglomerates,” it said.

GMA’s sale of merchandise for the past three months wrapped up at P108 million, ahead of the same period last year by P16 million or 17 percent.

Units sold for GMA Affordabox finished 39 percent higher over quantity sold in the first quarter of 2022.

“The slower growth in terms of amount vis-à-vis climb in quantities sold was due to the price reduction in July of last year. Since launch in mid-2020, the set-top box has already sold more than two and a half million units nationwide,” GMA said.

The network’s consolidated operating expenses amounted to P3.26 billion, slightly ahead by 6 percent or P184 million versus the same period in 2022.

Direct production costs escalated by 6 percent, while general and administrative expenses edged last year by 4 percent.

Meanwhile, cost of sales grew by 40 percent, attuned to the ramp-up in total units sold of the set-top box this period versus the first quarter last year.

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