GMA Network profit falls to P3.2 billion in 2023

MANILA, Philippines —  Broadcast leader GMA Network Inc. was hit with a 42 percent decline in its profit in 2023, as the company endured a P3 billion drop in revenue in the absence of election placements.

Based on its financial report, GMA’s net income fell to P3.17 billion in 2023 from P5.44 billion in 2022, as revenue crashed by 14 percent and expenses slightly went up.

The company was hurt by the absence of more than P3 billion in revenue that it generated from political advertisers for the election cycle in 2022.

In turn, GMA posted a 15 percent decrease in advertising revenue to P17.18 billion. The network said that it tried to make a second half push to minimize the income gap, but failed to achieve even at least a flat growth.

In spite of this, GMA said it can overcome advertising challenges with the entry of new forms of income streams. For one, the company raked in gains from online ads and over-the-top (OTP) licensing to make up for the absence from election materials.

“These revenue sources (online advertising and OTP licensing) saw considerable improvements in 2023, which were crucial in addressing challenges faced by the traditional advertising segment of the company,” GMA said.

On the other hand, GMA attributed the bulk of its spending hike to the increase in production costs and talent fees, ballooning by nine percent to P8.17 billion.

GMA said one of its largest expenditures in 2023 was the production of the live action remake of Voltes V, a program that cost at least P500 million to create.

Likewise, GMA spent more for the airing of its noontime shows. The network also observed that filmmaking became more expensive, as it funded the delivery of several films, including Firefly, winner of the Best Picture in the recent Metro Manila Film Festival.

GMA, however, managed to bring down its general and administrative expenses by eight percent to P6.12 billion in 2023. The company recorded an across-the-board decrease in its backend costs, from personnel and facilities, to taxes and licenses.

GMA was the undisputed leader in free TV with an audience share of 47.5 percent in Mega Manila and 45.2 percent nationwide.

Before 2023 ended, GMA welcomed a new CEO in Gilberto Duavit Jr., as Felipe Gozon retired from the post to focus on his role as chairman of the board.