GMA Network expects to post double digit growth in revenues and net income this year after swallowing ‘bitter pills’ in the third quarter of 2010 to arrest declining earnings.
In an interview, GMA7 Chairman Felipe Gozon said the network raised its rates even when ratings and revenues were lower in the third quarter and then it bounced back and was on the mend by the fourth quarter last year.
Gozon said unaudited figures show that from consolidated revenues of around P13 billion, GMA finished 2010 with a net income of a little more than P2.8 billion, around two percent higher than profits earned in 2009.
He said revenues will be boosted by a rate hike implemented late 2010 and early 2011, a resurgence in advertising as businessmen are upbeat about the economy, and new revenue streams from the launch of an all news channel and new media.
Gozon disclosed that he is confident of this year’s prospects since more than half of this year’s ad target has already been booked as early as December 2010. Signed up revenues amount to a little more than P7 billion.
There are around 10 advertisers with big volume accounts who signed up with GMA in December 2010. One company, who boycotted the Network, went back and signed up bigger accounts relative to before, said Gozon.
The network also booked ‘very good’ revenue figures for January and for the first few days of February. Gozon said the recently signed memorandum of understaking between the Manila Jockey Club, Inc. (MJCI) will entail GMA New Media, Inc. (NMI) to provide its technical expertise for online and text betting for horseraces has the potential to be a very big income generator since its market extends from local to worldwide.
Meanwhile, the company has yet to disclose its official financial report for 2010.