GMA Network saw its profits climb by a whopping 248% to almost P2 billion in the first quarter of 2021 from the P574 million a year ago, as a deluge of advertising placements paired with tax cuts boosted the company’s bottom line.

Advertising revenues leaped 57% to P5 billion, overtaking the year-ago level of P1.8 billion. Ad revenues had a 93% share of the total consolidated revenues.

“Coming from a banner financial year in 2020, GMA Network and subsidiaries ushered in the first quarter of 2021 with great zeal and enthusiasm,” the Kapuso network said on Monday, May 17.

While its main TV business contributed the most, its radio business also saw growth, with a sales hike of 90%. 

The rebranding of GMA News TV into Good TV or GTV also led to a 244% increase in revenues, while its regional TV business saw 150% growth in sales.

GMA News Online, GMA Entertainment Online, and social media accounts’ revenues improved by 41% year-on-year despite the “influx and proliferation of online players.”

The launch of the GMA Affordabox in 2020 also helped lift profits, as sales reached P146.9 million with nearly 1.2 million units sold.

Total revenues reached P5.5 billion, up by 55% from the same period a year ago.

Aside from the hefty gains in operations, GMA said the Corporate Recovery and Tax Incentives for Enterprises law, which trimmed corporate income tax from 30% to 25%, also helped its bottom line.

Operating expenses went up by 5% to P2.8 billion, as more of the network’s shows resumed production.

GMA, however, paid less talent fees during the first quarter. From P635 million a year ago, it was lower by 10% to P570 million.

As of end-March, the company’s total assets stood at P26.4 billion, 10% higher than December 2020’s P23.9 billion.

GMA’s strong earnings performance came as legislators denied its rival ABS-CBN a franchise.

ABS-CBN has yet to disclose full-year 2020 earnings and first-quarter 2021 earnings.

Shares of GMA closed higher by 1% on Monday. – Rappler.com