Corporate News

Poll ads help broadcasters boost bottom line

Posted on May 16, 2013

REVENUES from political advertisements helped lift the financial performance of GMA Network, Inc. and ABS-CBN Corp. in the first quarter, the rival broadcast giants said in separate statements yesterday.

GMA’s net income went up by 55% to P603 million in January-March from P388 million in the same period last year.

“The marked improvement for the first quarter came mostly from the rise in airtime revenues,” GMA said, noting that total revenues increased by 24% to P3.24 billion from P2.62 billion.

“Political advocacies and advertisements provided incremental revenues in the topline amounting to 12% of the increase,” GMA explained, while noting that recurring airtime revenues from regular advertisers also boosted revenues.

Operating expenses rose by 13% to P2.37 billion from P2.11 billion as production cost jumped 19%.

On the sidelines of the company’s stockholders’ meeting yesterday, GMA Chairman and Chief Executive Officer Felipe L. Gozon said in an interview that the company was looking to book “more than P2.5 billion” profits this year, 54.32% more than the P1.62 billion actually earned last year.

For its part, ABS-CBN’s net income grew by 66% to P508 million in the first quarter from P306 million the previous year.

“Growth in income was fueled by strong regular advertising revenues as well as election-related advertisements,” the company said in its statement. “Consumer sales also grew at a significant rate.”

Its consolidated revenues grew by 21% to P7.9 billion from P6.5 billion on advertising sales and consumer sales.

Total costs and expenses grew 17% to P7.2 billion on increases in production costs, cost of sales and services, as well as general and administrative expenses.

Shares of GMA ended yesterday’s trades at P9.77 apiece, unchanged from Tuesday, while those of ABS-CBN added 70 centavos to P45.70. -- CHCV