GMA-7 says pol ads to lift 2012 income above target
MANILA, Philippines - GMA Network chair and CEO Felipe Gozon said Wednesday, November 7, the company may exceed its 2012 net profit target of P2.8 billion as political advertisements for the 2013 mid-term elections start to flow in.
In a briefing, Gozon said GMA-7's political ad revenues during the 2010 elections exceeded P2 billion and they have reason to believe 2013 will be the same or higher.
"Politcians have begun to realize the importance of advertising in television. The penetration of television nationwide is about 94% and the traditional way of campaigning before, you know, rallies and shaking hands in the market, are beaten by a mile in advertising in a television program," Gozon explained.
Gozon said the company is also optimistic about it earnings next year. Although he said it has yet to determine its target bottom line.
GMA reported a 9% increase in its third-quarter 2012 income, on the back of higher airtime revenues.
The company said its airtime revenues went up 14% or P443 million to P3.537 billion. This helped prop up its third-quarter consolidated gross revenues to P3.822 billion or a 13% growth from last year.
"Given the third-quarter figures, we are optimistic that the fourth quarter will bring even better financial reslts as we expect political ads to further boost our earnings for the year," Gozon said.
For the first 9 months, the company's net income was flat at P1.587 billion this year compared to P1.580 billion last year.
Consolidated gross revenues reached P10.612 billion, a 5% increase year-on-year.
GMA-7's revenues from other sources for the January to September period reached P873 million or a 2% increase or P17 million more than last year.
Other sources included the company's businesses such as GMA New Media Inc., which accounted for half of its revenues during the period.
Another unit, GMA Worldwide Inc., the network's content acquisition and distribution subsidiary, generated $318,300 in the third quarter. This was on the back of sales of over 50 locally produced programs and movies to countries such as the US, Sinagpore, Vietnam, Hong Kong, Thailand, Indonesia, Malaysia, Cambodia, Brunei, Kenya and Tanzania. - Rappler.com