GMA7's net income surges by 89%
MANILA, Philippines – GMA Network, Incorporated (GMA) saw its net income surge by 89% in the first half of the year, on the back of stronger airtime and advertising revenues as well as flat growth in operational costs.
The broadcast giant announced on Thursday, August 6, that it recorded a net income of P1.10 billion ($24.03 million), which is 89% higher than the same period last year.
"In the first semester alone, we have not only breached the P1-billion mark in terms of net income but have also exceeded last year’s full year bottom-line performance by at least P89 million ($1.94 million)," GMA President and CEO Felipe Gozon said during a media briefing Thursday.
Revenues during the 6-month period, meanwhile, increased by 15% to P6.65 billion ($145.26 million), boosted by the broadcaster's "record-breaking performance in the second quarter."
The company’s second-quarter top-line climbed 25% to P3.65 billion ($79.73 million), while net income soared by 170% to P690.7 million ($15.09 million) mainly on higher advertising revenues.
Its operating expenses from January to June slightly grew by 3% to P5.05 billion ($110.31 million). The growth was flat compared to first quarter's 3%.
"We're optimistic that the rest of 2015 will also bring positive results for our company," Gozon said.
The broadcaster has already spent about half of its P934 million ($20.40 million) capital spending budget for the year, said Felipe Yalong, GMA’s executive vice-president and chief finance officer.
"Capital expenditures amounted to P465 million ($10.16 million) as of June 30. We have about P469 million ($10.24 million) until the end of the year," Yalong said, adding that the budget willl be partly used for the rollout of digital TV. (READ: Downsizing workforce inevitable as PH TV surfs the digital wave)
Job cuts in its headquarters continue
To reduce operational costs and ensure competitiveness, the head of GMA Network said his network will continue its manpower reduction program in its Manila headquarters.
“We’re already done in the regional, but [the manpower reduction program] here in our headquarters is still ongoing,” Gozon said when asked if his network is done with the job cuts.
"But I have to [make it] clear that this manpower situation is always ongoing – whether we add or reduce. It depends on the requirement of the operations. So it never stops. It just happens that we reviewed the regional [personnel] and streamlined operations so there were a lot of employees laid off,” he explained.
In April, contracts of workers in GMA-7’s regional offices in Cagayan de Oro, Bacolod, and two other cities were terminated. Some reports said this involved the sacking of at least a hundred reporters, video cameramen, and drivers. Gozon, however, did not say how many were laid off in its regional stations.
Gozon said GMA Network has no target number of employees to be laid off as "it is [the subject] of an ongoing review.” – Rappler.com
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