GMA Network, Inc. recorded a 13% increase in its attributable net income to P800.344 million for the second quarter, as revenues recovered slightly.
Despite a positive turnout for the April to June period, the media company’s six-month attributable net income is still 21% lower at P1.219 billion.
In a regulatory filing, GMA Network said net revenues inched up by 1.19% to P3.97 billion in the second quarter. However, the six-month revenue figure fell 6% to P7.24 billion.
“The first semester result was boosted by revenues during the second quarter which came up 22% better versus the recorded topline in the opening three months of this year. Nonetheless, the industry continued to be beset by the downsizing in television ad spend of major clients, consolidated revenues of the Company recorded a 6% decline from same period in 2017, albeit an improvement from the 13% shortfall posted by the end of the first quarter this year,” GMA said.
Consolidated airtime sales, which account for 88% of total revenues, slipped 7% to P6.4 billion in the first six months of the year.
“This year saw a notable contraction in television placements from advertisers, which was felt across the broadcasting industry. Mixed results were seen among airtime-revenue generating platforms, with Radio and Regional TV operations managing to pull ahead in their topline year-on-year, while Ch-7 and GNTV-11 had lukewarm sales in between periods,” GMA said.
GMA’s other revenue sources, which include international operations, subsidiaries and other businesses, went up by 3% to P855.9 million.
The company said its total operating expenses for the first half was flat at P5.573 billion, as the “escalation in general and administrative expenses was mitigated by the drop in production spending.”
Total production costs dropped 4% to P2.929 billion due to reduced spending for production supplies and transportation and communication expenses.
Shares in GMA ended flat on Tuesday to P5.42 each. — Denise A. Valdez