GMA Network's net income shoots up by 116%
MANILA, Philippines – GMA Network Incorporated saw its net income more than double in the first half of 2016 to P2.38 billion, thanks to political advertisements and double-digit growth in recurring revenue.
GMA chairman and CEO Felipe Gozon said the network's first half financial performance "definitely exceeded our expectations."
The listed broadcast giant announced in a media briefing in Quezon City on Monday, August 8, that GMA's net income surged by 116% to P2.38 billion, from P1.10 billion recorded in the same period a year ago.
GMA's combined airtime sales reached a record P8.065 billion, up 33% year-on-year.
Excluding political ads, its airtime revenue still increased by 10%.
"Increases in airtime revenue did not come only from pol ads, but also from the double-digit jump in recurring revenues. So far, we are still sticking on the P3 billion profit guidance for the year," GMA chief finance officer Felipe Yalong said during the briefing.
Digital shift blueprint
For the network's digital shift, the chief of GMA Network said his company expects to complete its final plan by the end of the year or the first quarter of 2017.
GMA had said it has earmarked around P1.5 billion for the digital shift.
"By the end of the year or first quarter of 2017, I'm expecting we can complete plans and study. Right now, there are two things that are still up in the air," Gozon told reporters.
These two factors are the programming setup and the partnership with a telecommunications provider.
"We need to know how many channels are we gonna operate. Second, we need to know with what telco are we going to partner with," Gozon explained.
He said both Globe Telecom Incorporated and PLDT Incorporated "would want exclusivity with us."
"The issue is very hard to craft. If those two things are resolved, even before the end of the year we could complete [digital shift plans]," Gozon said.
It was in December 2014 when the Philippine government cleared the way for the country's shift to a Digital Terrestrial Television Broadcast (DTTB) system.
This requires broadcast companies to simulcast Japanese-standard DTTB and shut off analog TV by 2019.
Gozon said GMA's digital device could be "smaller and cheaper" than those of its rival. – Rappler.com
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