GMA Network more than doubles earnings

MANILA, Philippines - Net earnings of GMA Network Inc. surged 116 percent in the first semester from a year ago, as election-related earnings boosted revenues for the period.

For the January to June period, net income of GMA reached P2.38 billion, well-above the P1.1 billion in the same period last year.

“It definitely exceeded our expectations for the year,” GMA chairman and CEO Felipe Gozon said.

GMA’s first half net profit is higher than the company’s bottomline for 2015 which reached P2.1 billion.

“We are hoping that this momentum will continue well into the remaining quarters,” Gozon said.

The higher net income was seen as revenues for the six-month period grew 32 percent to P8.76  billion from P6.65 billion last year on the back of election-related earnings together with the sustained growth in recurring advertisements.

Combined airtime sales reached a record P8.07 billion, a 33 percent uptick over the P6.07 billion last year.

Without the political ads, airtime revenues still went up 10 percent from last year.

Operating expenses rose seven percent to P5.38 billion in the first-half from P5.05 billion as total production cost and general and administrative expenses increased six and seven percent, respectively.

GMA chief financial officer Felipe Yalong said the company is sticking to its P3 billion net income guidance for the year.

As for its digital terrestrial television service, Gozon said the broadcast firm expects to complete its plan and study by the end of the year or by the first quarter of next year.

He said the company is still looking to spend around P1 billion to P1.5 billion for the launch of the service which he described to be patentable and a first in the market.

The product involves multiple platform delivery including a component which can be delivered through a telco network.

Gozon said GMA is in talks with telco players PLDT Inc. and Globe Telecom Inc. for a possible partnership for the service.