GMA NETWORK, INC.’S attributable net income plunged 87% to P102.47 million in the first quarter from a year earlier, as lower advertising revenue weighed on earnings.
In a disclosure on Thursday, the broadcaster said gross revenue declined 30% to P3.26 billion.
Advertising revenue dropped 31% to P2.98 billion, mainly due to the absence of political ads that boosted earnings during last year’s election-related spending cycle. Consumer sales, however, rose 14% to P381.08 million.
Gross expenses fell 9% to P3.32 billion. Production and direct costs declined 6% to P1.88 billion, while general and administrative expenses dropped 13% to P1.45 billion.
Separately, GMA said the Makati Regional Trial Court Branch 138 denied its petition seeking to nullify a Securities and Exchange Commission (SEC) rule imposing a nine-year term limit on independent directors of listed companies.
The court said the company failed to show sufficient evidence of actual or impending injury from the rule.
GMA said the court noted that the company may keep its independent directors until its annual stockholders’ meeting without penalty and would not suffer irreparable harm from the SEC order.
“The foregoing incident has no impact on the company’s financial condition or business operations,” it said.
The broadcaster earlier sought to postpone its annual stockholders’ meeting to December to address the implications of the SEC rule, but the regulator denied the request last week.
SEC Memorandum Circular No. 7, signed by SEC Chairman Francisco Ed. Lim in January, limits independent directors of listed companies to a cumulative term of nine years, including service rendered since 2012.
GMA shares rose 1.18% or 6 centavos to close at P5.14 each. — Ashley Erika O. Jose
