Weak ad earnings hit ABS-CBN, GMA Network bottom lines in H1 2023

MANILA  -Weakened advertising revenues hit media giants ABS-CBN Corp. and GMA Network, which have been establishing a stronger rapport recently, resulting in lackluster first half bottom lines.

In separate filings, the listed companies said revenue inflows slowed down in the first semester due to the absence of political advertisements, which significantly supported their operations in the past year.

The media group run by the Lopez family noted that its advertising revenues fell by 9 percent to P2.99 billion while the Gozon-led network saw theirs decline by 31 percent to P7.75 billion for the period.

Due to elevated inflation, GMA added that “major fast-moving consumer goods clients of the company which largely bank on individual purchasing power have likewise scaled down their ad spending.”

With total revenues down, ABS-CBN widened its net losses by 52.2 percent to P2.23 billion while GMA’s net profits dropped by 70 percent to P1.19 billion.

ABS-CBN spent P1.78 billion in production cost for the period, which is about 5 percent lower than it did last year with P1.87 billion.

GMA, meanwhile, saw its production cost climb by 5 percent to P3.66 billion in the first half from previous year’s P3.49 billion.

“Despite the contraction in sales during the semester, operations have returned to pre-pandemic levels, with costs also rising due to more fresh episodes produced as well as the resumption of face-to-face activities,” GMA said.

“As economies began to open up, the company restarted staging events and releasing movies in various countries worldwide,” added ABS-CBN, which has been operating sans a free TV franchise since 2020.

In January, the media giants signed their historic co-production agreement for a TV series titled “Unbreak My Heart.”

The romantic-drama series, top billed by actors Joshua Garcia, Gabbi Garcia, Richard Yap and Jodi Sta. Maria, is now airing on GMA and streaming in 15 international territories via over-the-top video streaming service Viu.

The parties also established a partnership allowing GMA’s international channels GMA Pinoy TV, GMA Life TV and GMA News TV, along with some of its on-demand programs, to be aired on ABS-CBN’s iWantTFC.

Such content will be available for iWantTFC viewers in select countries and territories in Asia Pacific, Middle East and North America, Europe and South Pacific/Caribbean Islands.