GMA 'cautiously optimistic' of hitting target despite income decline
MANILA, Philippines – GMA Network Incorporated remains cautiously optimistic of hitting its 2017 target even if it capped the 2nd quarter of the year with a much lower net income of P710.3 million because of the absence of political advertisements.
This is compared to the P1.36 billion in net income after tax that it registered in the same period in 2016, an election year.
GMA targets to close 2017 with a net income of P3.9 billion.
"We will still try to accomplish our year-end financial target as we have entered the 2nd half of the year. We are very excited about our new programs, particularly on our primetime block, as well as other business opportunities that are expected to unfold within the year," GMA Network chairman and chief executive officer Felipe Gozon said in a disclosure on Monday, August 14.
Due to the absence of election-related advertisements, GMA's net income after tax for the 1st half of 2017 was only P1.552 billion, a 35% decline year-on-year. (READ: Absence of political ads drags down ABS-CBN income in 1st half)
"The impact of last year's elections left a huge dent in this year's performance," GMA told the local bourse.
The Gozon-led broadcast giant said political advocacies and advertisements contributed P1.488 billion to its revenues during the 1st half of 2016.
Without the impact of election-related ads, GMA said its airtime revenue platforms including GMA-7, GMA News TV, Radio, and Regional posted modest revenue growth during the period.
Meanwhile, the network's international operations and other businesses, which were not affected by the election placements last year, reflected a 22% growth year-on-year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 29% to P2.961 billion. – Rappler.com