GMA Network posts revenue rise, banks on better economy

GMA Network, Inc. is banking on the improving economy and strategic sales to post better financial results this year following a surge in revenues in the first two months. The listed broadcast giant told the Philippine Stock Exchange on Monday gross revenues had risen by 44 percent to P2.23 billion in January to February from a year earlier due to the upswing in sales across all business units. "GMA Network has managed to sustain revenue growth in the past years despite the global financial crisis. With the economy starting to recover, and with the network’s strategic sales and marketing operations, our company looks forward to even better financial results this year," network Chairman, President and Chief Executive Officer Felipe L. Gozon said. Total airtime revenues went up by almost half to P2.073 billion, with Channel 7 growing by 46 percent, Q Channel 11 by more than a tenth, and radio by more than half. Revenues of its international unit also grew by more than a third to P158 million. The firm said the steady subscriber growth of its two international channels — GMA Pinoy TV (GPTV) and GMA Life TV (GLTV) — had led to GMA International’s revenue rise. Both channels are now available in the US, Canada, Europe, the Middle East, North Africa, Australia, New Zealand, Japan, Guam, Papua New Guinea, Singapore and Hong Kong, among others. GPTV subscribers reached 247,000 by the end of February, representing yearly growth of almost a fifth, while GLTV subscribers hit 119,000 or almost triple last year. "The network likewise continues its regional expansion projects to strengthen signal coverage in key provinces nationwide," the company said. GMA Network said it continued to dominate TV ratings in Mega Manila as of January, based on data from AGB Nielsen Philippines. For January, the media company posted an average daily audience share of 38.3 percent, 3 percentage points higher than rival ABS-CBN’s 35.3 percent. "The strong performance was due to adjustments made by the network in its programming lineup and schedule," the company said. Mega Manila TV households now make up 55 percent of the National Urban Philippines TV population and are generated from a bigger panel of 800 TV households, based on AGB Nielsen’s projections. ABS-CBN earlier claimed to have an audience share of 38.2 percent in Mega Manila for February compared with GMA Network’s 38.1 percent, based on data from research outfit Taylor Nelson Sofres. Profits of GMA Network rose by a tenth to P2.1 billion in the nine-month period ending in September 2009 from a year earlier, while revenues went up by 7.5 percent to P10 billion as airtime sales increased along with international cable service subscriptions. Airtime revenues for January to September 2009 went up by 5 percent to P9.2 billion from a year earlier. GMA Network has 46 very high frequency or VHF television stations nationwide, including the flagship GMA-7 in Metro Manila, two ultra high frequency or UHF stations, and one affiliate station. It also owns 21 radio stations. Gozon earlier said the company was likely to have exceeded its profit target of P2.8 billion last year. GMA Network plans to spend around P400 million this year to upgrade broadcast facilities and transmitters. GMANews.TV is the company’s news Website. — NPA, GMANews.TV