GMA Network's net income doubles with election-related ads
MANILA, Philippines – Broadcast giant GMA Network, Incorporated saw its net income double to P1.01 billion in the first quarter of 2016, after getting a boost from election-related advertisements.
"We expect our company's financial performance to continue to trend upward," GMA chairman and CEO Felipe Gozon said in a briefing in Quezon City on Thursday, May 5.
"We are pleased with the results of the first quarter and we hope to further improve the growth particularly in regular advertising," Gozon added.
GMA Network's revenue surged by 30% to P3.90 billion, driven by higher airtime sales. Operating expenses, meanwhile, inched up by 2% to P2.47 billion during the first 3 months of 2016.
By yearend, Gozon said he is "hoping" that the network's net income would hit P3 billion. (READ: GMA Network breaches P2B net income target for 2015)
Boosted by election spending
"Previously, election spending comes in with regular advertisers reducing their placement. It did not happen this time," Gozon said during the briefing.
The chief of the broadcasting giant said GMA targets P1.5-billion worth of political ads this year, slightly lower than its 2010 record of P2 billion.
"It’s a bit lower because that kind of overspending did not happen this year," GMA chief marketing officer Lizelle Maralag explained. (READ: GMA's Felipe Gozon: No to offers for now)
GMA said it secured the biggest share in advertising load, including political ads, among free-to-air channels during the covered period with 35%, while rival ABS-CBN Corporation got 28%.
Without political ads, GMA said it still had the largest share with 36% versus ABS-CBN's 29%.
For 2016, its capital spending budget was pegged at P550 million, including multi-million investments for mounting the coverage of the upcoming elections.
The amount, however, excludes the budget for the network's digital terrestrial television (DTT) rollout. – Rappler.com