GMA Network Inc. said profit was down sharply in the first semester of 2017 in the absence of a political advertising windfall during last year’s elections.
GMA Network said in a statement yesterday that net income fell 35 percent to P1.55 billion from January to June this year compared to the same period in 2016.
The company downplayed the decline, noting that recurring revenues, which remove the effect of political ad spending, rose 6 percent to P7.7 billion in the first half of 2017. In terms of total revenue, however, GMA saw a 12-percent decline.
It noted that political advocacies and advertisements contributed P1.49 billion to revenues in the first half of 2016.
Its Ebitda, or earnings before interest, taxes, depreciation and amortization, fell 29 percent to P2.96 billion during the first half of this year.
“Without the impact of political advertisements, GMA’s airtime revenue platforms, including GMA-7, GMA News TV, Radio and Regional, all posted revenue growths during the period,” GMA said in a statement.
GMA said its international operations and other businesses were not affected by the election placements last year.
“We will still try to accomplish our yearend financial target as we have entered the second half of the year,” GMA chair and CEO Felipe Gozon said in the statement. The company did not hold its typical press briefing for the second-quarter period.
“We are very excited about our new programs, particularly on our primetime block, as well as other business opportunities that are expected to unfold within the year,” Gozon added in the statement.
GMA said its financial performance benefited from “efficient cost management,” citing a 3-percent increase in total operating expenses.
“This, despite the production of more expensive programs aimed at helping maintain the network’s nationwide urban TV ratings dominance,” GMA said.
It added that GMA International (GMAI), the business unit that manages the distribution and operation of the network’s international channels, gained in total revenues by 9 percent, which were propelled by revenues from subscription/licensing and advertising.