GMA Network Inc. is unlikely to meet its P3 billion net income target this year due to lower earnings in the third quarter and higher expenses.
"We’re not revising our target but we will not able to achieve it," Felipe L. Gozon GMA chairman and CEO, said yesterday.
Gozon said although revenue would reach P12 billion for the whole year, a 26 percent drop in third quarter earnings would drag down income.
GMA’s third quarter income stood at P583 million, against last year’s P788 million, due to lower airtime revenues and absence of political ads.
He said earnings from radio and international channels have been growing but those of GMA 7 which account for 80 percent have suffered a decline.
Higher expenses came mostly in the form of the $4 million spending for the acquisition of Viz Ardome software from Vizrt/Ardendo, hardware from Hewlett Packard (HP), and other facilities and broadcast peripherals.
The upgrade would allow the network to migrate to a tape-less, file-based workflow for greater efficiency and environmental friendliness.