GMA Network posts Jan.-Sept. net income of P2.27B
10/28/2010 | 03:30 PM
Listed broadcast firm GMA Network Inc. on Thursday said that its net income for the January-September period amounted to P2.27 billion, 6 percent more than the same period last year.
But the broadcaster’s bottom line dipped to P583 million in the third quarter of this year, 30 percent lower than the second quarter’s P834 million.
“This drop is a disappointment, but not a big disappointment," GMA Network Chairman and CEO Felipe Gozon said in a media and analysts’ briefing at GMA Network Center, Quezon City.
“We really expected a huge drop this year because we substantially increased our effective rates that we charged to advertisers. Our effective prices last year were considerably lower than the prices charged by [other networks]," he added.
Gilberto Duavit Jr., GMA Network President and COO, pointed out that the broadcast firm is only “resetting" its pricing rate for advertisers.
GMA Network registered P3.31-billion in revenues in the third quarter of 2010, down by 16 percent from the second quarter’s P3.94 billion.
“When poll ads dried up," the television firm’s revenues dropped, particularly in July and August, Gozon said.
The third quarter of 2010 is a non-election campaign season, he pointed out.
Year-on-year, the television firm posted an 8-percent increase to P10.875-billion revenues in the first nine months of 2010.
The increase in the network’s top line was backed by the “accumulation of airtime revenues from media platforms and subscription revenues from international operations," according to a statement.
Channel 7 posted a 7-percent increase in revenues to P9.262 billion. Q Channel 11 registered a 10-percent improvement to P346 million. International revenues climbed by 10 percent to P700 million. Radio’s revenues soared to P443 million, up 73 percent.
Gozon is confident that GMA Network will reach its bottom line target of P3.5 billion for the year. “We have not revised year-end target if the trend does not stop the upswing."
He said, “The times ahead are rosy, and even if revenues for the company went on a short-term hiatus, we are positive that we can finish the year with another banner performance — both in ratings and profits."
Gozon pointed out that GMA Network’s advertising load is on the uptrend as big advertisers have returned and made huge commitments with the television firm.
Overseas, GMA Network continues to eat up market share with its international channels, such as GMA Pinoy TV and GMA Life TV, the statement said.
By the end of the third quarter, GMA Pinoy TV’s subscribers were at 263,000, 17 percent higher than the subscriber count recorded in the same period in 2009. There were 123,000 subscribers of GMA Life TV, up 13 percent year-on-year.
Both channels have penetrated markets in the US, Canada, Europe, Middle East, North Africa, Australia, New Zealand, Japan, Guam, Papua New Guinea, Singapore, and Hong Kong.
GMA Network said that its distribution and acquisition subsidiary GMA Worldwide Inc. sold $124,264 worth of programs in the third quarter 2010, generating sales worth $306,824.
GMA Network — the most watched channel in viewer-rich Mega Manila during the third quarter of 2010 according to AGB Nielsen — comprises 55 percent of total urban television households nationwide. -- Jesse Edep/OMG, GMANews.TV