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Business

GMA profit falls

Elijah Felice Rosales - The Philippine Star

MANILA, Philippines — Broadcast giant GMA Network Inc. sustained a double-digit decline in its net income last year as its second-half earnings dropped due to economic uncertainties.

In a financial statement, GMA Network said its profit fell by 28 percent to P5.44 billion in 2022, from a record P7.53 billion in 2021.

As revenue slid by four percent to P21.56 billion, GMA Network said expenses went up by 15 percent to P14.43 billion on increases in production and administrative costs.

GMA Network said political placements at the height of the national elections accounted for the bulk of its advertising earnings in 2022. Core channel GMA-7 remained the largest source of income for the firm, although it generated seven percent less revenue when compared to 2021.

On the other hand, sister channel Good TV registered an 86 percent growth in revenue owing to the rebranding it undertook to expand its presence. GMA Regional TV improved earnings by eight percent on strong performances from outlets in Cebu, Davao and Cagayan de Oro.

GMA Network, however, suffered a 10 percent dip in radio sales last year, as advertisers plugged fewer placements in the second semester when inflation reached new highs.

The network said although the impact of the pandemic started to taper, it dealt with new challenges from rising inflation to peso depreciation.

“The confluence of these took a toll on various industries and it heavily impacted the advertising spending of GMA Network’s major clients, resulting in considerable cutbacks in their budgets,” it said.

In particular, GMA Network said production costs increased by 25 percent to P7.48 billion, as it shot new shows and aired additional content to stay ahead of the free TV competition. Also, the firm incurred extra expenses in producing and broadcasting its election coverage.

On the general and administrative side, GMA Network saw a four percent rise in personnel costs in line with the yearly adjustment for rank and file employees. The network also released signing bonuses in compliance with the collective bargaining agreement for 2022 to 2024.

GMA Network has enjoyed its dominance as the broadcast leader on free TV since its main rival ABS-CBN Corp. was denied a fresh franchise by Congress in 2020.

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