GMA NETWORK H1 PROFIT DOWN 4% TO P1.01 BILLION!

Filipino broadcast company GMA Network Inc. (GMA) on Tuesday said it registered strong financials for the first semester of 2012 on improved advertiser confidence and sound financial management.

As of end-June, the company’s consolidated gross revenues reached P6.790 billion, even surpassing last year’s already-solid top line performance by P64 million or 1 percent.

The company invested heavily in its newly-launched originating stations in Ilocos and Bicol during the six-month period, and despite heavy investments to maintain its lead in nationwide television ratings, it managed to contain its operating expenses’ growth rate at less than 1 percent or P4.371 billion versus 2011’s P4.343 billion.

In fact, cash operating expenses even dipped by a little over 1 percent or P55 million year-on-year, GMA Network noted in a statement handed out during its briefing for analysts in Quezon City.

Breaching P1-B bottom line

With a hike in the top line compounded by strict control in costs, the company grew the first six months’ earnings before interests, taxes, depreciation, and amortization (EBITDA) by 6 percent or P104 million to P1.915 billion, and breached the P1 billion bottom line mark.

GMA generated a net income after tax of P1.014 billion, still on track of reaching its full-year target of over P2 billion.

According to GMA chairman and CEO Felipe L. Gozon, the company’s outlook for 2012 remains on a positive note. Aside from initial placements of political advocacies that started in July, GMA also saw growth in regular advertisers’ accounts. 

"We saw a vast improvement in GMA's financial performance during the first half of 2012. The company was able to recover from last year's financial hurdle at a much faster rate against the backdrop of the foreign market's recovery," he said. "Indicators for economic growth are becoming more apparent in Asia and the Philippines particularly in the domestic trade market." — VS, GMA

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