GMA 7 on track to hit profit target

Broadcast giant GMA Network Inc. is confident of growing its profit back to record levels—despite falling behind in the first quarter of the year— as advertising revenues start to pick up.

The company said it was able to recover its first-quarter shortfall during the succeeding months of the year as big advertisers came back. Also contributing to revenue growth was the increase in its international subscription revenues due to the introduction of new channels in more markets across the globe.

“Beginning June, the company has been exceeding its monthly gross targets and the second half of 2012 is going to be far better than the same period in 2011,” the company told the local bourse in a disclosure.

“GMA 7 is on track to reach its P2.8-billion net income for 2012,” the disclosure said. This is more than P1 billion higher than last year’s P1.7 billion. If the target is hit, GMA 7 would have matched its 2010 profit level, which was one of the highest in the company’s history.

Reaching P2.8 billion this year will also be a major achievement for GMA 7 particularly because 2012 is a non-election year. Local TV networks enjoy extraordinarily high revenues during election years due to political ad placements.