GMA Network posts 24% hike in first half net profit

MANILA, Philippines - Broadcast firm GMA Network sustained its strong financial performance in the first semester of 2010 even after the revenue windfall from political advertisements that ended in early May as the company’s bottom line grew 24 percent to P1.689 billion from last year’s P1.361 billion.

In a statement, GMA Network said consolidated revenues increased 19 percent to P7.565 billion from P6.335 billion in the same period in 2009.

All business units made positive revenue contributions during the period. Parent company Channel 7 booked an 18- percent jump in revenues to P6.414 billion in the first half; Q Channel 11 recorded a 17-percent revenue hike to P251 million; while GMA International increased revenue contributions 11 percent to P462 million. Radio recorded the highest revenue increase of 111 percent to P337 million. 

Meanwhile, operating expenses amounting to P4.133 billion also grew 18 percent on a year-on-year basis, mainly driven by higher production costs of primetime and weekend variety programs the addition of network-produced programs that replaced canned materials in the late afternoon grid, and the election coverage costs.

Total assets grew eight percent to P13.309 billion due to the P1.649 billion increase in cash driven mainly by political advertisements. Total liabilities remained at par with previous year at P2.927 billion. The company continues to boast of a debt-free status by end of the second quarter.

GMA Network chairman, president, and CEO Atty. Felipe L. Gozon said that the company keeps a confident posture in the broadcast industry amidst competition and is on track of reaching, and even surpassing its 2010 bottom line targets. “Coming from a very good first semester, I am confident that GMA can still deliver strong financial and ratings performance in the second half,” he said.

The network maintains a strong presence overseas through its international channels, namely, GMA Pinoy TV (GPTV) and GMA Life TV (GLTV). GMA International recently launched both channels in Brighthouse Florida and En-Touch Texas. GLTV, meanwhile, made a debut in Comcast Central California and Hong Kong through PCCW this May.