Broadcast giant and the No. 1 TV station, GMA Network, recorded a steep decline in net income for 2022.
According to its 2022 financial statement, GMA Network reported a 28 percent drop in net income year-over-year. The network posted a net income of 5.4 billion in 2022, 2.1 billion lower than its 7.5 billion net income in 2021.
GMA Network’s income drop is attributed to a 4 percent decline in its total revenue of 21.5 billion; 886 million less than the company’s 2021 revenue of 22.4 billion. The bulk of the revenue decline comes from goods sales, which decreased by 35 percent from 528 million in 2021 to 340 million in 2022.
Advertising revenue also dropped by 4 percent, to 20.2 billion from 21.01 billion in 2021.
In a statement published in the Philippine Star on April 20, GMA Network said that record-high inflation during the second half of 2022 caused advertisers to place fewer commercials.
The network’s reduced revenue was also affected by an increase in overall operating costs.
With increased production and administrative costs, the Kapuso network posted a 15 percent increase in its operating expenses from 12.6 billion in 2021 to 14.4 billion in 2022. This is a margin of 1.8 billion pesos.
GMA Network, however, remains the dominant broadcasting network in the country without its former archrival, ABS-CBN.