- Both ABS-CBN Corporation and GMA Network suffered net income decline.
- The Kapamilya network’s slow rise of revenue came from their aims to go fully online.
- The Kapuso network may be expecting early political advertisement placement.
ABS-CBN Corporation and GMA Network experienced double-digit drops in their net income during the first half of 2018. According to information from Entrepreneur.com.ph which Elyssa Lopez researched, this was caused by advertisers channeling their money into other forms of Filipino entertainment.
The Kapamilya network endured a considerable decline as it encountered a 41% drop in net income from Php 1.3- billion in the first half of 2017 to Php 741 million in the same period of this year.
ABS-CBN’s advertising from television and radio airtime lowered by three percent to Php 9.6 billion. This was further provoked by the lower revenues recorded from the movies under ABS-CBN Films.
The Kapamilya network ended the first half of the year with a decline of total revenues from Php 19.34 billion to Php 18.9 billion. The slow rise of revenue came from ABS-CBN Corporation aiming to go fully online to “address the rapid digital preference move of the millennials.”
ABS-CBN Corporation already launched online platforms. The firm’s “digital and interactive media” operations posted a 50-percent increase in revenues for the first half of Pho 390 million.
The Kapuso network, on the other hand, had its net income slide by 21% to Php 1.2 billion from last year’s Php 1.6 billion. In the network’s second quarter financial report, “This year saw a notable contraction in television placements from advertisers, which was felt across the broadcasting industry.”
GMA Network’s revenue from television and radio airtime dropped by seven percent to Php 6.4 billion. They also ended the first half of the year with a six percent decline in total revenues at Php 7.2 billion.
GMA Chairman and CEO Felipe Gozon remains optimistic about GMA performing better for the rest of 2018. The network may also be expecting early political advertisement placement as May 2019 senatorial election looms closer.
“In spite of challenging market conditions, GMA Network was still able to breach the one billion-peso mark in terms of net income for the first half of 2018. We look forward to seeing the rest of the year with better results for our company.”