GMA Network misses earnings target of P3B in 2010

Broadcast giant GMA Network Inc. failed to achieve its earnings target of P3 billion last year following the increase of its advertising rates. The Gozon-led network said its net profits last year only reached P2.82 billion, from P2.56 billion in 2009. “When we increased the price [or ad rates], there was resistance [from advertisers]," GMA Network chairman and chief executive officer Felipe Gozon said in a press briefing Friday. He pointed out that the network “did not meet the target" despite the political advertisements brought by the national elections last May. As to the outlook for this year, the network is confident that its earnings will grow robustly “because we are starting to lead in nationwide ratings," Gozon said. “While we are ahead in Metro Manila and Luzon, we are behind in nationwide ratings," he said. Gozon said the network looks 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 year." Network's sales GMA Network’s sales totaled P14.3 billion last year, half a billion higher than the previous year. The television business unit — GMA 7 — chalked in the biggest revenues worth P12.21 billion, 3 percent higher than last year’s P11.88 billion. GMA radio’s sales amounted to P535.6 million, an increase of 40 percent from 2009. GMA International brought in subscription and advertising revenues worth P925.37 million, up 8 percent from 2009’s P855.18 million, on strong sales in the US, Canada, Middle East, North Africa, Asia Pacific, and Europe. The broadcast behemoth paid out cash dividends to its shareholders amounting to P1.22 billion in December — the second payout of dividends for 2010. Last May, GMA Network disbursed P2.19 billion. The network stressed that it does not rely on foreign loans or external funds to run its operations. “It has enough reserves and remains debt-free at present," it said. — JE, GMA News