GMA Network recurring revenues rise 15% in Q1 2017 | GMANetwork.com - Corporate - Articles

Leading broadcast company GMA Network, Inc. (GMA) reported recurring revenues of P3.766 billion in the first quarter of 2017, up by 15 percent versus the same period last year.

GMA Network recurring revenues rise 15% in Q1 2017

May 15 2017

(Quezon City, Philippines - May 15, 2017) -- Leading broadcast company GMA Network, Inc. (GMA) reported recurring revenues of P3.766 billion in the first quarter of 2017, up by 15 percent versus the same period last year.

 

 

PHOTO BY MICHAEL PAUNLAGUI, GMANetwork.com

 

Including political advertisements, GMA's revenues in the first three months went down by only 4 percent. Political advocacies and advertisements contributed P640 million to the Company's top line during the first quarter last year.

Total operating expenses were kept at bay, going up by only 5 percent to P2.592 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by 16 percent to P1.545 billion.

GMA finished the quarter with a net income of P842 million, posting a 17 percent decline year-on-year due to the effect of election-related placements in 2016.

The Network paid out cash dividends to its shareholders worth P3.548 billion at P0.73 per share on May 15, upholding its commitment of providing the best returns to its shareholders.

"Even without political ads, we are tracking a stronger year financially and we expect to achieve our growth targets in 2017," said GMA Network Chairman and CEO Felipe L. Gozon.

Meanwhile, GMA-7 sustained its nationwide TV ratings dominance with an average of 39.8 percent household audience share in NUTAM, besting ABS-CBN's 35.5 percent in the first quarter based on data from Nielsen TV Audience Measurement.

Last April 24, GMA launched Dobol B sa News TV in the morning primetime block to further strengthen the market share and revenues of its flagship AM radio station DZBB and leading local news channel GMA News TV.

Other Business Developments

Discounting the effect of political advertisements, the Network's core channel, GMA-7, generated a 15 percent improvement in airtime revenues in the first quarter. GMA News TV and Radio increased by 22 percent and 20 percent respectively.

GMA International (GMAI), the business unit that manages the distribution and operation of the Network's international channels, recorded a 9 percent increase in revenues from its combined subscription/licensing and advertising.

For the three months ended March 2017, flagship international channel GMA Pinoy TV had an estimated 1.8 million viewers worldwide, a year-on-year increase of 6 percent. Viewership from GMA Life TV increased by 19 percent with 800,000 viewers worldwide while GMA News TV International posted a 63 percent increase in viewers worldwide.

GMA's technology arm, GMA New Media Inc. (NMI), closed the quarter with a remarkable performance, delivering a consolidated revenue growth of 63 percent and a net income increase of 421 percent.

GMA Worldwide, Inc. (GWI), the Network's subsidiary responsible for syndicating Kapuso programs to the international market, sold content for airing in Latin America, Vietnam, Malaysia, Canada, and Zambia, among others. GWI's sales were up 18 percent compared to the same period last year.

On GMA's Digital Terrestrial TV (DTT) rollout, construction for the Network's transmitter and antenna building and other facilities for its Mega Manila digital broadcast is ongoing.

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