GMA 7 profit down 35% a year before midterm polls

GMA Network Inc

MANILA, Philippines — GMA Network Inc., the dominant free TV player, ended 2024 with a 35-percent drop in its bottom line because of weaker advertising revenues.

In its latest disclosure, the listed media company reported that net income had fallen to P2.07 billion last year from P3.17 billion in 2023.

Advertising revenues, which comprised 92 percent of the top-line figures, fell by 5 percent to P16.24 billion last year. Total revenues slid by 6 percent to P17.56 billion for the period.

“The year started slow, following the general cutback in advertising spending across the industry. Nonetheless, revenues rallied in the last quarter of 2024, boosted by the presence of political advocacies in view of the upcoming midterm elections, thus trimming the revenue shortfall in between periods,” GMA explained.

Overall, production costs dropped by 0.3 percent to P8.14 billion last year after cutting back on rentals and other program expenses.

But talent fees and production personnel costs rose by 8 percent to P4.55 billion last year.

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Top ratings

“[Ratings-wise], the Kapuso Network’s flagship channel GMA 7 continued its ratings supremacy over free-to-air channels, based on Nielsen TV Audience Measurement data,” the media company said.

GMA 7 has household ratings of 9.3 percent and audience share of 45.8 percent in Mega Manila.

Its competitor TV5 has 3.2-percent household rating and 15.9-percent audience share.

A2Z, meanwhile, captured 8-percent audience share and 1.6-percent household ratings.

These three broadcasters also air content produced by ABS-CBN Corp. via block time leasing agreements. To recall, the Lopez-led media group has been operating without a free TV franchise since its renewal was blocked in 2020.

Last year, GMA and its partner ABS-CBN released “Hello, Love, Again,” a movie top-billed by actors Kathryn Bernardo and Alden Richards. It earned over P1 billion in ticket sales last year, making it the highest-grossing Filipino film of all time. INQ