GMA profit up 10% in 6 months

MANILA, Philippines — Broadcast giant GMA Network Inc. capped the first semester with a 10 percent jump in profit, maintaining its dominance in the free-to-air platform in the absence of its traditional rival.

In its financial statement submitted to regulators, GMA said its net income jumped to P4 billion in the first half from P3.64 billion a year ago as revenues grew by 13 percent to P11.94 billion due to the influx of campaign materials during the election period.

Core channel GMA-7 recorded a 10 percent spike in its revenue to contribute the lion’s share in the income pie.

“For the past six months, GMA-7 posted a 10 percent hike in its top line from the first semester of 2021. Incremental sales from the election-related load was instrumental in attaining this feat as the network was the most widely viewed free-to-air broadcast media with the most extensive reach nationwide,” GMA said.

Rebranded GTV, short for Good TV, accounted for the second largest share in GMA’s revenues, while regional TV operations chipped in the next highest sales for the network giant. According to GMA, its reach in the provinces expanded with the opening of new stations in Batangas and Zamboanga in January.

For other sources, subscription revenues from international channels dipped by three percent in the first semester as against a year ago, as paying accounts in GMA Pinoy TV and GMA Life TV decreased during the period.

Further, GMA said sales from its set top box and dongle declined by 30 percent to P181 million.

On the other hand, GMA’s expenses increased by 14 percent to P6.69 billion, from P5.88 billion as the firm shelled out additional cash for the return of in-person tapings.

Last year GMA managed to save up on production cost by airing reruns of its shows, especially when Metro Manila reverted to lockdowns and face-to-face tapings were prohibited. For 2022, it resumed shooting fresh episodes through locked-in tapings.

Likewise, the broadcast giant paid non-recurring expenses for the staging of its election-related materials like the Jessica Soho Presidential Interviews. Talent fees also ballooned by 16 percent to P1.29 billion, while rental cost of outside services also rose by 60 percent to P237.52 million.

GMA has enjoyed its position as the broadcast leader on free TV since its main competitor ABS-CBN Network was denied by Congress of its franchise renewal in 2020.

It remains to be seen, however, how the impending return of ABS-CBN to free TV through its P4 billion investment in TV5 Network Inc. would change the broadcast landscape.