GMA Network hikes Q1 net income by 71 percent to P855 million


(From left) GMA Network EVP and Chief Operating Officer Gilberto R. Duavit Jr., GMA Network Chairman, President, and CEO Atty. Felipe L. Gozon, and GMA Network Chief Financial Officer and SVP for Corporate Services Group Felipe S. Yalong presented key figures of the Kapuso Network during the company’s first quarter performance briefing held last May 19, 2010 at the GMA Network headquarters in Quezon City.


According to its Corporate Communications department, GMA Network has posted a sharp increase in its performance during the first quarter of 2010. Based on a report furnished to PEP (Philippine Entertainment Portal), GMA-7 garnered a net income of P855 million, 71 percent higher than the P501 million it netted for the same period last year.

Consolidated gross revenues for the three-month period breached the P3-billion mark and settled at P3.625 billion, 37 percent higher than last year’s P2.651 billion. Network executives point out that this growth is driven by political advertisements and backed up by revenue increases across all business units.

Operating expenses for 1Q reportedly rose by 20 percent to P1.927 billion. The report explains that the rise in operating expenses was mainly driven by the significant increase in production cost, since the Network produced TV programs with high production value on top of additional station-produced shows.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 57 percent to P1.413 billion from the previous year’s P902 million.

Total assets grew by 13 percent to P14.820 billion, while total liabilities increased by eight percent to P3.085 billion.

GMA Network chairman, president, and CEO Atty. Felipe L. Gozon commended the Network’s first quarter performance and credited the company’s continued operational efficiencies as a key factor in the company’s profitability. "I am satisfied with the Network’s performance for the first quarter. Even without the political ads, we would still post modest gains in net income because of our operational efficiencies," Gozon said.

INTERNATIONAL REACH. Overseas, employees of the Kapuso Network have been working actively to gain more international viewers. For the first quarter, GMA International contributed P235 million in subscription revenues, an increase of 27 percent from last year’s P185 million.

As of end March, GMA International reported a 19 percent increase in the subscriber count of its first international channel: GMA Pinoy TV (GPTV) to 250,000. Of the said number, 120,000 are also subscribers of the second international channel, GMA Life TV (GLTV), which reported a seven percent growth in the subscriber count year-on-year. The subscriber counts are equivalent to 1.5 million and 800,000 viewers for GPTV and GLTV, respectively.


GPTV, which carries GMA Channel 7 programs, was recently launched in MTS Canada, KPU Ketchikan Alaska, Comcast Colorado , Brighthouse Florida , and En-Touch Texas. GLTV, which airs lifestyle programs from Q Channel 11, was recently launched in Comcast Colorado, PCCW Hong Kong, Central California, Brighthouse Florida, and En-Touch Texas.

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Both channels have penetrated markets in the U.S., Canada, Europe, Middle East, North Africa, Australia, New Zealand, Japan, Guam, Papua New Guinea, Singapore, Hong Kong, and many other territories.


On the other hand, GMA Network’s distribution subsidiary, GMA Worldwide, Inc. (GWI), has syndicated locally produced programs to as far as Africa, Alaska, the Middle East, and North America. GWI has also distributed several GMA-7 dramas and films to Indonesia, Malaysia Singapore, Cambodia, Brunei, and Vietnam.


Recently, GWI showcased GMA-produced programs at Discop Africa held in Dakar, Senegal, and at the Hong Kong International Film and TV Market, where more international buyers once more took notice of GMA-7’s locally produced shows.


UPGRADING FACILITIES.
GMA Network likewise continued its signal and facility upgrade projects in key areas nationwide including Matina (Davao City), Roxas City (Capiz), Dipolog (Zamboanga del Norte), Ozamis City (Misamis Occidental), San Jose City (Occidental Mindoro), Kalibo (Aklan), Virac (Catanduanes), Ormoc City (Leyte), Tagbilaran (Bohol), Santiago City (Isabela), and Jala-jala (Rizal). GMA-7’s Engineering Group has also looked at doing trial broadcast of digital terrestrial TV in view of the industry’s forthcoming migration to this technology.

In terms of TV ratings, GMA Network remained the leader in viewer-rich Mega Manila as of the first quarter of 2010, according to survey results from TV ratings data supplier AGB Nielsen Philippines. Mega Manila’s TV households comprise 55 percent of all TV households nationwide.

GMA-7 edged out competition with an average audience share of 37.2 percent for the first quarter, 1.3 percentage points higher than ABS-CBN’s 35.9 percent.

During the 1st quarter, GMA-7 had 15 entries in the list of overall top 30 programs. GMA-7’s adaptation of Mars Ravelo’s Darna, topbilled by Marian Rivera, took the top notch in the list with an average household rating of 32.2 points.

Six GMA-produced programs made it to the top 10 list. Apart from Darna, other Telebabad (primetime) programs that made it to the top 10 include the fantasy series The Last Prince topbilled by Aljur Abrenica and Kris Bernal, the action-packed Panday Kids led by child actor Buboy Villar, the romantic comedy Full House topbilled by Richard Gutierrez and Heart Evagelista, banner newscast 24 Oras, and television’s first reality sitcom, Pepito Manaloto.

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Pepito Manaloto, which is the brainchild of comic genius Michael V., piloted with an impressive 27.5% program rating last March 28, up by 11.3 points compared to ABS-CBN’s Goin Bulilit, which registered 16.2%.

Meanwhile, including TV specials during the quarter, the latest bout of boxing’s pound-for-pound king Manny Pacquiao against Joshua Clottey beat all TV programs with 37.9 rating points. The main event registered a household rating of 49.7 percent and an audience share of 81.3 percent in Mega Manila.

GMA-7 programs launched during the quarter including The Last Prince, First Time, Diva, Ina, Kasusuklaman Ba Kita?, Gumapang Ka Lusak, Kandidato, and Wipeout beat their ABS-CBN counterparts.

GMA Network also kept its lead in another key area—Urban North/Central Luzon—where GMA-7 led competition by 2.6 points in average channel ratings during the first quarter. The TV households in this area comprise 21 percent of all TV households nationwide.

Among the programs set to launch on GMA Network in the coming months include Endless Love topbilled by Dingdong Dantes and Marian Rivera, Pilyang Kerubin starring Barbie Forteza, Survivor Philippines: Celebrity Edition with host Richard Gutierrez, Langit sa Piling Mo with lead actors Heart Evangelista and Mark Herras, and a whole lot more.

Just recently, the Kapuso Network delivered a comprehensive and credible election coverage dubbed Eleksyon 2010. The Network’s marathon coverage of the elections was watched by more viewers in Mega Manila.

The coverage that began as early as 5 am on May 10 and ended around noon the following day, May 11, had a two-day average rating of 12.3 percentage points among Mega Manila TV households. This figure is 2.3 points higher compared to Halalan 2010’s two-day average rating of 10 percent based on AGB Nielsen’s overnight ratings. On May 10 primetime, 24 Oras Eleksyon 2010 Special rated 33.7 percent, more than 10 rating points away from TV Patrol World’s 22 percent.

GMA News and Public Affairs utilized the latest on air graphics system powered by Vizrt to bring election information from the field via dynamic and creative 3D and 2D graphics—the very same graphics system used by CNN.

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Meanwhile, GMA Films recently released two box-office hits: Working Girls, a co-production with Viva, and the Marian Rivera-Dingdong Dantes starrer You To Me Are Everything.


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