THE PROFIT of GMA Network Inc. dipped slightly in the second quarter over the same period in 2009 amid the deterioration in ratings that pushed some advertisers away.
But the company’s year-to-date earnings were still up 24 percent, thanks to the revenue boost from political advertisements in the first half of the year.
The company said its profit in April to June slipped by 3 percent to P834 million from P860 million a year ago.
The slight dip in ratings in Metro Manila and other parts of Luzon where the network has been historically strong in, it said, coupled with the sharp rise in expenses resulted in lower earnings in the quarter.
“We became a little complacent. But we are starting to get ABS-CBN’s lead in nationwide ratings lower, and we are regaining our superiority in Metro Manila,” GMA president and CEO Felipe Gozon said.
The company said it would maintain its target of posting double-digit profit growth for the whole year.
In the first half of the year, the company said its net income reached P1.689 billion, or 24 percent up from a year ago.
Consolidated revenue increased 19 percent to P7.565 billion. This was slightly offset by an 18-percent rise in operating expenses to P4.13 billion.
Increases in bonuses and the high cost of its election coverage pushed up expenses during the period.
GMA Network also noted that its slower growth in the first half, compared to the 179-percent expansion of rival ABS-CBN’s profit in the same period, was due to the high base that GMA had.