GMA Network net profit jumps 33% to P751M in 1st semester

GMA Network Inc. posted a net income of P751 million in the first half of the year, up by 33 percent from the previous year’s level on the back of a 20-percent gain in revenues.

In a statement issued yesterday, GMA, the operator of TV’s Channel 7, said its revenues grew to P3.62 billion from only P3.01 billion a year earlier.

Earnings before interest, taxes, depreciation, and amortization (EBITDA), on the other hand, amounted to P1.47 billion or 25 percent higher than the year ago figure.

GMA-7 senior vice president for corporate services Felipe Yalong said the company’s strong financial performance for the first half has kept the network’s optimism of achieving its year-end targets.

GMA-7 officials had said it expects profits of the network to go up by more than 50 percent this year with advertising revenues and local programming driving the growth. GMA-7 reported a net income of over P1 billion last year or more than double the company’s net income in 2002 of P406 million.

Yalong said the continued uptrend in its net income is indicative of the broadcasting firm’s readiness to launch an initial public offering.

"We are ready for an IPO and it will not be long before we offer our shares to the public. We are just waiting for the right timing," he said.

To further strengthen its foothold in the industry, GMA-7 is allotting P350 million for its capital expenditures this year anchored on the launch of its international operations in North America, the revival of its ultra high frequency (UHF) TV station, and the production of two or three movies.

Officials expect international operations to account for 25 percent of the company’s bottomline by the fourth or fifth year of operations.

GMA-7 will likewise continue to upgrade its production facilities to further broaden its presence nationwide. GMA is particularly keen on expanding its services to Davao, Iloilo, Cebu and other key strategic areas.

It has a network of 45 VHF and two affiliate stations nationwide, and can be seen in a number of households in Asia, Australia and Hawaii via satellite. It can also be heard on the airwaves through dzBB-AM and dwLS-FM in Manila; dySS-AM and dyRT-FM in Cebu; and in 27 RGMA radio stations throughout the country. – Zinnia dela Peña