GMA Network posts 66% rise in third-quarter net income

GMA Network Inc. continued to show strong financial performance during the three months ended September, on the back of sustained airtime income and other revenue streams. 

The broadcast giant's net income surged 66 percent to P706 million in the third quarter of the year from 422 million a year earlier. This brought the year-to-date bottom line up 80 percent at P1.804 billion from P1.001 billion.

GMA Network generated revenues of P3.660 billion or 17 percent above the P3.141 billion booked a year earlier. In the first nine months, its revenues rose by 16 percent to P10.313 billion from P8.906 billion.

"Our company is in strong financial position as we continue to dominate the nationwide ratings. We expect to sustain this growth and eventually finish the year on a solid note in terms of our revenues and ratings," GMA Chairman and CEO Felipe L. Gozon said.

Ratings lead

The network led the nationwide ratings in September, capturing 37.4 percent of the total day household audience. This beats the 34.9 percent share of competitor ABS-CBN Corp., based on data from Nielsen TV Audience Measurement. 

GMA Network continued to dominate in Urban Luzon and Mega Manila. In September alone, the company registered a 44.6 percent total day audience share while ABS-CBN received 26.8 percent. 

The improved ratings translated to year-on-year increase in airtime revenues: 19 percent to P3.304 billion from P2.786 billion for the third quarter and 18 percent to P9.373 billion from 7.930 billion for the nine months. 

The network's flagship television station GMA Channel 7 contributed P8.758 billion of airtime income in January to September. This represents an 18 percent improvement from P7.413 a year earlier.

"It is really volume-driven, we were able to close a lot of deals with advertisers who contributed to the bulk of the volume," GMA Marketing and Productions Inc. President and COO Lizelle Maralag said in a media briefing Thursday.

AlDub phenomenon

The third quarter witnessed the peak of the "AlDub phenomenon" — the on-screen tandem of Alden Richards and Maine Mendoza on noontime variety show Eat Bulaga — that has posted record-breaking ratings and tweet volumes.

"It is difficult to really quantify in peso terms... but suffice it to say that looking at how that phenomenon has brought audiences back after a certain period of time, I think that can be clearly established by the ratings," GMA President and COO Gilberto R. Duavit Jr. said in the same briefing.

The financial impact of the AlDub phenomenon is better defined for Eat Bulaga producer TAPE Inc., which receives revenues from ads placed during the program's airing, Gozon noted.

"In terms of volume, the [higher airtime revenues] is also driven by the new programs launched by GMA. But of course, AlDub is way up there because of the phenomenal number in terms of Eat Bulaga's audience share," Maralag said.

'Sa tamang panahon'

Amid its stellar performance, GMA Network have attracted more suitors for a shareholding.

Former Ilocos Sur Governor Luis "Chavit" Singson, along with world boxing champion and lawmaker Manny Pacquiao, has reportedly expressed interest in acquiring shares in the publicly listed broadcast firm.

"We have not received formally the offer. At this point, it will be probably better for the shareholders to focus first in growing the business... Out of prudence, the shareholders would like to see up to where we can go [in terms of profit]," Gozon said.

GMA Network is optimistic about breaching the P2 billion mark this year after beating its original profit guidance of P1.5 billion as early as in the third quarter.

"Noong October, ang taas ng revenue namin, ngayong November we are only behind 35 percent from last year and we have practically reduced our operating expenses. So the combined effect of these things make me believe that 2015 will be very good financially for us," Gozon said. – VS, GMA News