GMA Network more than doubles profit last year

MANILA, Philippines - Net earnings of listed broadcast firm GMA Network Inc. (GMA) surged 111 percent to P2.13 billion in 2015 from P1.01 billion a year ago supported by growth in election-related advertisements.

Higher net earnings were seen as the consolidated revenues of the company grew 15 percent to P13.73 billion last year from 2014’s P11.98 billion.

Airtime revenues particularly in regular advertisements amounted to P12.381 billion in 2015, 16 percent higher than a year ago.

Even without the impact of political-related ads, GMA said airtime revenues would still have increased 12 percent from the previous year.

Other revenue streams including production and subsidiaries operations likewise saw a three percent improvement due to the performance of wholly-owned subsidiaries GMA New Media Inc. (NMI) which operates Internet play, and GMA Worldwide Inc. (GWI) which is responsible for marketing Kapuso programs to the international market.

The continued success of GMA’s online platforms as well as recent tie-ups with major over-the-top operators like iflix and HOOQ has allowed NMI to end 2015 with a 50 percent year-on-year increase in total advertising revenues.

GWI, on the other hand, exceeded 2014’s sales by 34 percent as it sold 4,003 program hours in various countries across the Asia Pacific.

“Our financial performance in 2015 was a result of multiple factors but mostly from our reclaimed lead in nationwide ratings and continued dominance in Urban Luzon and Mega Manila,” GMA chairman and chief executive officer Felipe Gozon said.

Last year, GMA was ahead of its rival networks in National Urban Television Audience Measurement with its 35.4 percent household share compared to ABS-CBN Corp.’s 34.9 percent and TV5’s 9.2 percent based on data from ratings service provider, Nielsen TV Audience Measurement.

Meanwhile, the company’s total operating expenses went up two percent to P10.75 billion from a year ago due to higher production cost amid the network’s work to strengthen content quality on different platforms.

Given the increase in net earnings and minimal growth in operating expenses, GMA’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2015 reached P4.64 billion, a 59 percent rise from 2014.

For this year, Gozon said the network intends to match if not beat last year’s net income result.

“We are determined to replicate, if not surpass, what we were able to achieve last year this 2016, as we remain committed to strengthening our core business and other new and emerging ventures,” he said.