GMA 7 hits 2005 profit target of P2B

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GMA 7 hits 2005 profit target of P2B
Posted: 11:45 PM | Apr. 02, 2006
Elizabeth L. Sanchez
Inquirer

Published on Page B1 of the April 3, 2006 issue of the Philippine Daily Inquirer

 

GMA NETWORK INC. has announced that it hit its 2005 net income target of P2 billion, or 34 percent higher than the P1.5 billion in 2004. It said consolidated gross revenues grew 24 percent to P9.7 billion from P7.8 billion in 2004. However, operating expenses also jumped 25 percent to P5.2 billion last year, driven primarily by higher production costs. The network fielded three big-budget fantasy series or "telefantasyas" in 2005, including "Darna," "Encantadia" and "Sugo," compared with one in 2004.

 

New programs were also produced and aired on its free QTV Channel 11, which was launched in November last year. The promotions for QTV, the launching of GMA Pinoy TV, and the regional awareness campaigns of the network also contributed to the increase in operating expenses, the company said. In 2005, GMA maintained its lead in Mega Manila TV ratings in all day parts, including the highly contested primetime block. As of February this year, GMA posted total day ratings of 18.4 percent versus ABS-CBN's 14.3 percent, according to data from ratings firm AGBNMR.

 

AGBNMR data also showed that as of February this year, 17 out of the top 30 TV programs were from GMA with the network's primetime programs occupying the top spots. GMA Network's regional news programs in Iloilo, Cebu and Davao as well as its national primetime news program "24 Oras" also took the top spot in ratings in those areas. GMA Network prepaid the balance of its five-year long term loan of P1.9 billion last February, nine months ahead of the scheduled due date of November 2005. Primarily using internally generated funds, GMA Network paid more than P543 million in principal and interest. In terms of its regional expansion, the company said it has upgraded its transmitter and other technical facilities in Cebu and Davao and has installed a transmitter in Bacolod.

 

GMA earlier said it would set aside about P900 million for capital expenses this year.

 

It said GMA Pinoy TV, which was launched in the United States, Japan, Guam and Malaysia last year and the Middle East and Cerritos, California,

this year, continued to increase its subscriber base, exceeding 80,000 as of March this year.

 

(GMA Network is a parent company of INQ7.net.)