Monday, April 03, 2006
GMA Network's profit rises to a new record
By Cai U. Ordinario, Reporter
GMA Network Inc., the Philippines' leading broadcast firm, said it hit its profit target last year, as it maintained its leadership in television audience ratings.
In a statement, the company reported a net income of P2 billion, or 34 percent higher than the P1.5 billion it earned in 2004.
Felipe L. Gozon, GMA president and chief executive officer, said the network may exceed its 2005 income targets, but warned that the second-half performance was crucial.
Consolidated gross revenues last year increased by 24 percent to P9.7 billion from the previous year's P7.8 billion. Operating expenses, however, rose 25 percent to P5.2 billion last year from P3.5 billion in 2004.
"[This was] driven primarily by higher production cost. The network fielded three big-budget and top-rating 'telefantasyas' in 2005, including Darna, Encantadia and Sugo," GMA said.
Also, the launch of the newly acquired QTV Channel 11 in November and international arm GMA Pinoy TV, also put pressure on the company's finances. The promotional activities for QTV and the regional campaign for Pinoy TV weighed heavily on the company's financial position, it said.
GMA said it also prepaid the balance of its P1.9 billion five-year loan last February, nine months ahead of the scheduled due date. The company said it used internally generated funds to prepay its loans, with more than P543 million in principal and interest paid in February.
The broadcast firm last year maintained its lead in Mega Manila TV ratings, including the highly contested prime-time block. As of February this year, GMA posted total day ratings of 18.4 percent versus its competitor's 14.3 percent, according to data from AGBNMR.
"AGBNMR data also showed that as of February this year, 17 out the top 30 TV programs were from GMA with the network's primetime programs occupying the top spots," the company said.
Gozon said GMA's regional news programs in Iloilo, Cebu and Davao as well as its national primetime news program 24 Oras also took the top spots in ratings in the said areas.
The company said it has upgraded its transmitter and other technical facilities in Cebu and Davao, and has installed its new transmitter in Bacolod. More improvements will also be implemented in other key cities in the country, it said.
The company said GMA Pinoy TV, which was launched in the US, Japan, Guam and Malaysia last year and the Middle East and Cerritos, California this year continues to increase its subscriber base. As of last month, GMA Pinoy TV already has 80,000 subscribers, it said.
Since its launch in November, QTV Channel 11 has maintained its hold on the number three spot in terms of ratings.
The network's film outfit, GMA Films, released blockbuster film Let the Love Begin last year, including the movie version of TV series Mulawin.
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