GMA expects record profit of over P3B in ’11
MANILA, Philippines—Broadcast giant GMA Network Inc. expects to post a record profit of over P3 billion this year on the back of higher revenue and tempered growth in expenses, ensuring healthy returns for its shareholders.
GMA chairman Felipe Gozon last Wednesday said that after the network seized the nationwide ratings lead from rival ABS-CBN Corp., the company could expect more ad placements this year.
“With our clinching of the number one spot, we have rendered academic the argument of advertisers whenever we negotiate with them concerning our rates and share of their ad budgets,” Gozon told shareholders at the company’s annual meeting. “I’m sure [profits] will be over P3 billion this year.”
That figure will be more than the P2.82 billion the company made in 2010.
Gozon said GMA hiked its ad rates last year to equal the fees charged by ABS-CBN. The ad rates were also raised to reflect the company’s improved ratings. While the adjustment prompted some advertisers to boycott GMA, the same clients had since returned, resulting in higher earnings for the network.
Data from AGB Nielsen showed that GMA had unseated Lopez-led ABS-CBN as the leader in nationwide ratings.
ABS-CBN disputed this claim, citing data by another ratings firm Kantar Media, which showed the Lopez firm in the lead.
But Gozon said the number of advertisers and TV networks that subscribe to AGB Nielsen’s data should be testament enough to the reliability of the data it provides.
“What we claim is that AGB is more reliable not only because they have more meters, but because they have more subscribers,” Gozon said, adding that ABS-CBN was the only local broadcaster that gets its data from Kantar.
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