Base effect pulls down GMA 7 income
GMA Network Inc.’s overall first-half performance was dampened by the so-called base effect coming from the boom in advertising placements related to the national elections in 2010, but the company expects revenue to pick up in the third quarter.
The broadcast company’s first-half net income for 2011 stood at P1.06 billion, 38 percent down from P1.69 billion in the same period in 2010. Revenue for the first half of 2011 was 11 percent lower at P6.73 billion from P7.56 billion in a year ago.
The network reported consolidated gross revenue for the second quarter of 2011 of P3.59 billion. This was 8.94 percent less than the P3.94 billion made last year. Net income for the second quarter was P521 million, 37.5-percent down from 834 million in the same period last year.
Quarter-on-quarter performance was slightly better. Revenue from regular advertising, subscriptions and other sources improved 14 percent to P3.59 billion in the second quarter from P3.14 billion a year ago. However, net income after taxes also dipped, although at a slower clip of 2.4 percent, to P521 million in the second quarter from P534 million in the first quarter this year.
