051307: GMA Network posts 22% increase in Q1 net income

May 13, 2007
Updated 21:17:14 (Mla time)
Elizabeth Sanchez-Lacson
Inquirer

MANILA, Philippines -- TELEVISION giant GMA Network Inc. said its net income surged 22 percent to P421 million in the first quarter of the year from year-ago level.

Gross revenue in the first quarter rose by 9 percent to almost P2.5 billion, the company said in a statement citing its unaudited financial report.

Airtime revenues of both GMA 7 and free channel QTV 11 posted improvements. QTV's first quarter gross revenue was 48 percent higher than that in the first quarter of 2006, while revenue from the network's international operations--GMA Pinoy TV and syndication--grew 89 percent from year-ago level.

Operating expenses rose 6 percent in the first quarter to P1.155 billion year-on-year, due largely to GMA 7's higher costs of production , advertising and promotions for new programs that were launched during the period.

Earnings before interest, taxes, depreciation and amortization (Ebitda) grew to P902 million or 18 percent higher than last year's P764 million due to significantly higher net revenue.

GMA Network has maintained its lead in Mega Manila TV ratings as of March 2007. Based on AGB Nielsen's Mega Manila TV Households Overall Channel Ratings, the network posted an average total day rating of 17.3 percent against rival ABS-CBN's 14.9 percent.

Seven of the top 10 TV programs for March were from GMA. Also, eight of the top 10 daytime programs and seven of the top 10 evening or prime time programs were also from GMA, the company said.

The network's international channel, GMA Pinoy TV, continues to register significant increase in number of subscription worldwide. As of February 2007, GMA Pinoy TV's official subscriber count reached more than 131,000.

GMA Network hopes to raise between P6.4 billion and P7.8 billion from a planned public offering of new shares and Philippine Deposit Receipts (PDRs) in July.

The company is planning to offer 91.346 million common shares at between P7 and P8.50 per share.

PDRs are shares that are entitled to economic benefits such as cash, stock or property dividends. However, they have no voting power.

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