ABS-CBN, GMA expect earnings boost from poll ads

MANILA, Philippines - Media firms ABS-CBN Corp. and GMA Network Inc. are aiming for higher net earnings this year as revenues are seen to get a boost from election-related spending and improved ratings.

ABS-CBN chief financial officer Aldrin Cerrado said in a press briefing after the firm’s annual stockholders’ meeting yesterday, this year’s net earnings guidance is between P3.2 billion and P3.5 billion, higher than the P2.5 billion net income in 2015.

This year’s net profit performance is expected to be supported by spending for election-related advertisements.

“I think we’ll probably get election spending close to or maybe slightly higher than we saw in 2010,” ABS-CBN president and chief operating officer Carlo Katigbak said.

Revenues from election-related advertisements placed on ABS-CBN were valued at P2.3 billion in 2010.

For this year, revenues from election-related ads received by ABS-CBN have exceeded P2.3 billion with the higher rates compensating for the slight decline in minutes paid by period this year from P3 billion a year ago.

The company expects this year’s net earnings to be supported by the expenditures for poll-related ads even as it has set a lower target of P1.5 billion for revenues from political advertisements compared to the P2 billion generated in 2010.

For the January to March period, GMA Network’s revenues from political ads have already amounted to P640 million.

While regular advertisers historically tend to reduce spending for advertisements during an election period, GMA Network chairman and chief executive officer Felipe Gozon said placement of regular advertisers have even increased in the first quarter of this year amid strong ratings of programs and product offerings of the network.