GMA Network Inc., the second- biggest broadcasting company, registered a net profit of P2.15 billion in the first nine months, up 10 percent year-on-year, putting it on track to achieve its income target of P2.8 billion this year.
GMA Network chairman, president and chief executive Felipe Gozon expressed confidence that the company could achieve or exceed the income target this year.
“We remain ahead of competition in terms of sales. Barring any major event that will affect the company’s performance for the remaining months, I think 2009 will be another breakthrough year for the network,” Gozon said.
The company said it remained bullish despite the series of calamities that recently struck the country and the global financial crisis that reduced advertising expenditures this year.
Gross revenues in the first nine months rose 7 percent to P10.025 billion. Airtime revenues from TV and radio contributed P9.243 billion, while subscription fees from international operations and other revenue-generating activities of subsidiaries accounted for P782 million.
GMA Network said it kept operating expenses to a single-digit growth of 9 percent to P5.555 billion. Production costs increased 2 percent on year to P2.922 billion.
General and administrative expenses climbed 18 percent to P2.632 billion due mainly to the growth in personnel cost after the company signed a three-year collective bargaining agreement, which included a hefty signing bonus.
Nine-month earnings before interests, taxes, depreciation, and amortization settled at P3.713 billion.
Subscription revenues for GMA International jumped 54 percent over last year.
The steady growth in the subscriber count of GMA’s two international channels—GMA Pinoy TV and GMA Life TV—boosted the revenues of GMA International. Alena Mae S. Flores
