PHILIPPINES – GMA Network’s strong financial performance in the first semester continued into the third quarter of 2015 with both its airtime revenues and nationwide ratings effectively maintained at an optimistic level.
Revenues during the third quarter improved by 17 percent to P3.660 billion, while net income soared 66 percent to P706 million as airtime revenues and consolidated sales from international operations, subsidiaries and other revenue streams exceeded that of last year, the network said in a disclosure to the Philippine Stock Exchange.
By the end of the first nine months, the company’s revenues stood at P10.313 billion, 16 percent higher than 2014. Net income after tax reached P1.804 billion, up by almost 80 percent over the same period last year.
“Our company is in a strong financial position as we continue to dominate the nationwide ratings. We expect to sustain this growth and eventually finish the year on a solid note in terms of our revenues and ratings,” said GMA Chairman and CEO Felipe L. Gozon.
Operating expenses in the first nine months increased by only 2 percent to P7.683 billion even as total production cost grew by 5 percent. EBITDA (earnings before interest, taxes, depreciation, and amortization) settled at P3.812 billion, surpassing last year by 50 percent.
Airtime revenues for the first nine months reached P9.373 billion, exceeding last year’s performance by 18 percent. Propelling the increase was flagship TV station GMA Channel 7 as it recorded an 18 percent growth in its topline.
The company’s radio business also continued to build on its momentum from the previous periods as revenues jumped 21 percent versus 2014. GMA News TV also yielded positive results with a 17 percent increase in its earnings.
GMA International, which manages the operations and distribution of the Network’s international channels, continued to expand its subscriber base with GMA Pinoy TV, GMA Life TV and GMA News TV International subscribers increasing by 5 percent, 11 percent and 47 percent, respectively, during the period.
GMA Network Inc (PSE:GMA7)’s stock, however, closed lower in today’s trading despite the positive market-moving news. The news was released 15 minutes prior to the close. Shares of GMA Network Inc (PSE:GMA7) was down 1.98% to trade at Php7.42 apiece at the close. – BusinessNewsAsia.com