Emboldened by its second quarter performance, GMA Network expects its earnings to bounce back above the P3 billion this year despite a drop in first quarter profits.
In an interview after the firm’s annual stockholders’ meeting, GMA chairman Felipe Gozon said he expects the firm to surpass last year’s P2.82 billion and ‘its going to be big. All I can say is it’s going to be more than P3 billion.’
He explained that revenues were good in April ‘but May is really fantastic. We are over P1 billionin TV sales for Channel 7 only (as of May 17, 2011) and this is not an election year.’
Gozon said they have already increased advertising rates this year and the network continues to lead ratings based on the Nielsen Audience Measurement.
GMA reported that its net income for the first quarter of 2011 fell 37.5 percent to P534 million from the P855 million recorded during the same period last year when the firm benefited from political advocacies and advertisements.
Gozon said he remains confident that GMA will deliver better financial performance in the succeeding months with GMA continuously emerging a ratings winner despite stiffer competition.
“GMA maintains its lead in audience share from January 2011 to date. With majority of the country’s population now attuned to GMA, I look forward to a more solid liaison with our partners, the advertisers and viewing public alike,” said Gozon.
The firm said it started 2011 on the upward trend with an 18 percent growth in consolidated gross revenues from regular advertising and subscription accounts in the quarter to P3.14 billion from P2.65 billion delivered same period last year, after stripping off P973 million worth of political ads.
Airtime revenues delivered by platforms television and radio from regular advertisers grew by 21 percent to P2.87 billion from P2.37 billion.
Flagship business unit Channel 7, which is now the acknowledged national ratings leader from January to date, and GMA Radio hiked regular advertising revenues by 25 percent and 19 percent, respectively.
GMA International made subscription and advertising revenues worth P230 million this first quarter. (JAL)
