BROADCASTER GMA Network, Inc. expects 2011 profits to drop by as much as 11% from year-ago levels after third-quarter results missed targets, a ranking official yesterday said.
Advertisers had lessened spending because of uncertainties in advanced economies but the worst is possibly over, Felipe L. Gozon, chair and chief executive officer for GMA Network, said.
“Third quarter is not so good. Big advertisers cut back, particularly multinationals,” Mr. Gozon told BusinessWorld in a chance interview yesterday.
“We have a shortfall in our target. We did not expect that…but there was an economic crisis in Europe and United States,” Mr. Gozon added.
Moving forward, the broadcaster expects to end the year with P2.5-2.7 billion in earnings versus the P2.8 billion it recorded in 2010, he said.
This is contrary to GMA Network’s earlier targets of topping the previous year’s profit levels.
So far, earnings of GMA Network sank by 37.5% to P1.055 billion in the first half from year-ago levels. Official third-quarter results will be announced on Thursday.
GMA Network fell by 0.3% to P6.50 apiece yesterday. -- Neil Jerome C. Morales