PRESS STATEMENT FROM GMA-7:
"Broadcast giant GMA Network, Inc. (GMA) remained steadfast as it capped financial performance in 2010 with revenues of P14.299 billion, half a billion higher than a year ago.
Net profits likewise registered a slight improvement at P2.821 billion, inching up 2009 profit level by P2.576 million or 0.1 percent. The Company still managed to post bottomline growth amid a slew of difficulties it encountered last year.
"Consolidated airtime revenues from all platforms climbed four percent to P13.193 billion backed mostly by political advertisements during the election period, which totaled P2.054 billion as against the P636 million booked in 2009. Revenues from international and subsidiaries operations, meanwhile, grew three percent to P1.107 billion.
"Flagship business unit Channel 7 chalked in the biggest revenues worth P12.213 billion, P334.06 million or three percent over the preceding year's P11.879 billion. GMA Radio inked its success story with revenues worth P535.60 million, or a sales hike of 43 percent as against 2009.
"GMA International brought in subscription and advertising revenues worth P925.37 million, eight percent up from 2009's P855.18 million on strong sales in the US, Canada, Middle East, North Africa, Asia Pacific and Europe.
"Total operating expenses (OPEX) were up by P619.45 million or eight percent year-on-year to P8.461 billion. Production costs went up by eight percent or P338.53 million on account of the non-recurring election coverage as well as additional in-house produced programs in the weekday late afternoon grid and the weekend flagship entertainment variety program Party Pilipinas. The weekday primetime programs also had higher programming costs relative to their counterparts from a year ago.
"General and administrative expenses (GAEX) were kept at a single-digit growth of eight percent to P3.733 billion. More than one third of the hike in GAEX was due to the spike in advertising and promotions to support the blitz in the regions and to hype the Company's 60th anniversary.
"The year finished with earnings before income, taxes, depreciation, and amortization (EBITDA) worth P4.711 billion, four percent behind 2009's P4.889 billion. But the drop in non-cash expenses drove the net income to settle at P2.821 billion.
"The Company paid out cash dividends to its shareholders amounting to P1.215 billion in December. It was the second payout of dividends for 2010--the first of which amounted to P2.187 billion disbursed in May. The Company need not rely on foreign loans or external funds to run its operations--it has enough reserves and remains debt-free to-date.
"GMA Chairman and CEO Atty. Felipe L. Gozon, coming from a roller-coaster-like-ride in 2010, looks forward to a much more profitable year ahead with 58 percent of revenue targets already signed at the closing of last year.
Due to the proactive stance of its marketing arm, GMA Marketing and Productions, Incorporated (GMPI) headed by President and COO Lizelle G. Maralag, the Company already booked more than P7 billion worth of sales for 2011 as of December 2010.
"GMA proved it can withstand the tests of times. I am confident the hard days are over and we can look forward to better times ahead. The entire organization—with footprints in regional, national, and international markets—is upbeat to exceed the records made in 2010 this 2011," said Gozon.
GMA's international channels—GMA Pinoy TV (GPTV) and GMA Life TV (GLTV)—both recorded double-digit growth in subscriptions by end fourth quarter 2010. GPTV's subscribers were over 273,000 as of the mentioned period, up 16 percent year-on-year. Of this number, 125,000 are also subscribers of GLTV, increasing subscription rate by 17 percent from 2009.