GMA Network hits jackpot with AlDub
GMA NETWORK Inc. said full-year profit may double to P2 billion after earnings surged in the first nine months of 2015, mainly due to higher television advertising revenues.
The broadcast firm, which has had several failed discussions with suitors for a possible investment in GMA, said it would place more focus on growing its business instead of engaging with interested investors, chair and CEO Felipe Gozon said.
GMA said in a stock exchange filing that profit during the nine-month period hit P1.8 billion, up 80 percent over the same period in 2014. Its revenues, which mainly came from airtime sales, jumped 16 percent to P10.3 billion.
Airtime revenues during the period hit P9.373 billion, up 18 percent. This was due to gains booked by GMA Channel 7, which recorded an 18-percent growth in its top line.
“The outlook is very good if you compare it with last year. I think P2 billion is reachable as net income after tax for 2015,” Gozon said on Thursday. The company booked a net income of about P1 billion in 2014.
Credit also goes to the AlDub “kalye-serye (street series)” segment of long-running noontime show Eat Bulaga, which airs on GMA. The surprise hit AlDub, which features the romantic pairing of celebrities Alden Richards and Maine Mendoza as Yaya Dub, has lured millions of viewers and has drawn widespread coverage from local and even international news outlets.
GMA reported operating expenses were up 2 percent to P7.68 billion, while total production costs grew 5 percent. Its Ebitda, or earnings before interest, taxes, depreciation, and amortization, ended the period at P3.812 billion, up 50 percent.
“Our company is in a strong financial position as we continue to dominate the nationwide ratings,” Gozon said
TV ratings matter because they partly dictate how advertisers, the major revenue source of TV shows, allocate billions of pesos in ad spending. Urban Luzon and Mega Manila, which account for a large part of TV households, are areas where GMA traditionally has an edge over main rival ABS-CBN Corp.
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