GMA, ABS-CBN profits up

The country’s two biggest television networks posted higher profits in the first six months of the year, buoyed by election-related ads during the run-up to the May elections, GMA Network Inc. and ABS-CBN Corp. reported on Tuesday.

GMA Network said net income in the first half rose by 12 percent to P1.135 billion while ABS-CBN said net income hit P1.34 billion, up 44 percent.

Both firms also reported higher revenues, with GMA Network booking P6.73 billion, up 14 percent. Its advertising revenues hit P6.17 billion, an increase of 15 percent. But taking out election-related advertising, airtime revenue would only have grown 2 percent.

GMA Network’s operating expenses increased 13 percent to P5.09 billion.

ABS-CBN, meanwhile, posted consolidated revenues of P17.06 billion from January to June, up 23 percent. Its advertising revenues alone increased 29 percent to P10.06 billion.

But removing political ads, airtime revenues would have grown by 17 percent, ABS-CBN chief financial officer Aldrin Cerrado said in a briefing.

ABS-CBN added that total costs and expenses increased by 20 percent to P15.28 billion due to higher production costs, cost of sales and services as well as general and administrative expenses.

Both firms expect higher profits for the full year, their respective officials said on Tuesday.

GMA chair and CEO Felipe Gozon said the company was looking to grow profit by at least 10 percent from P1.62 billion last year. Miguel R. Campus