GMA 7 posted P1.58B in profit in first 9 months

MANILA, Philippines—Television giant GMA Network Inc. grew its third-quarter profit by nearly a tenth, reversing the year-on-year decline seen in the first half of the year, due largely to higher ad revenues supported by improved ratings.

GMA 7 remained the most watched channel nationwide in total-day ratings in January to September, but officials conceded the lead in primetime to its chief rival, ABS-CBN Corp.

“Given the third-quarter figures, we are optimistic that the fourth quarter will bring even better financial results as we expect political ads to further boost our earnings,” GMA chairman Felipe Gozon said in a statement.

GMA reported a 9-percent increase in third-quarter earnings to P573 million from year-ago level. For the nine months to September, GMA booked a net income of P1.587 billion, up 0.4 percent from the level last year.

He said political “advocacy” ads, or early placements by politicians who will seek public office in the mid-term polls next year, were expected to start pouring in the fourth quarter. Gozon said these ads, together with placements by traditional advertisers, would help the company meet or even exceed the company’s profit goal of P2.3 billion for 2012, higher than the P1.7 billion in 2011.

Political ads are expected to surge in early 2013 when the official campaign season begins, Gozon said, adding that this would likely boost the company’s bottom line beyond 2012 levels.

GMA’s gross revenue for the nine-month period reached P10.612 billion, up 5 percent from a year ago. The bulk of the amount came from airtime revenues, which grew by 5 percent to P9.74 billion.

GMA credited its improved performance to its higher TV rating. In urban areas nationwide, GMA claimed an average audience share of 33.8 percent for total day ratings in the third quarter, ahead by 1.2 percentage points of ABS-CBN.

Gozon admitted that the primetime slot, where the company was lagging behind its rival, remained the main focus area for GMA.