Political ads boost GMA net income to P3.1B in first 9 months

GMA Network Inc. saw a large jump in profit in the first nine months of 2016, mainly due to the presence of political advertising in the run up to the May elections.

GMA said in its quarterly financial filing to the Philippine Stock Exchange that net income during the period rose 73 percent to P3.1 billion when compared to the same time in 2015. Revenues, most of which came from television and radio airtime sales, was up 24 percent year-on-year to P12.8 billion from January to September this year.

GMA said the earnings received a “windfall from the recently concluded national and local elections and supplemented by the improvement in sales from recurring placements.”

GMA, which mainly competes with ABS-CBN Corp. for television ratings, said political ads added about P1.5 billion during the period. Without those ads, sales from regular advertisers still rose 12 percent.

GMA said airtime revenues alone were up 25 percent to P11.67 billion in the first nine months of the year. Its flagship Channel 7 accounted for 84 percent of sales, itself up 25 percent. Sales without political ads was still up 13 percent for Channel 7.

During the same period, GMA said total operating expenses rose 10 percent to P8.42 billion.

The company, which did not hold its traditional quarterly briefing, is expected to make a decision this year on a partner for its plans to roll out a digital television service.

GMA chair and CEO Felipe Gozon said last August that the company was in talks with both PLDT and Globe Telecom.

At the time, Gozon noted that it was important for GMA to have a telco partner. “The telcos have the highways, we have the cars and buses, in other words, content. So we have to marry the two,” Gozon had said.

ABS-CBN already launched its digital television service last year. The roll-out of the digital television, which promises clearer picture and sound quality alongside more channels, comes after the National Telecommunications Commission finalized the implementing guidelines in December 2014.