GMA Network Inc. said net income fell 49 percent in the first quarter from a year ago, on weak television spending by major advertisers.
The broadcast company, led by the Gozon, Duavit and Jimenez families, reported a profit of P426 million in the first three months, down from P842 million it earned in the same period last year.
Consolidated revenues also dropped 13 percent to P3.27 billion, amid the challenging market condition such as the contraction in TV spending by major advertisers.
Consolidated airtime sales comprising 88 percent of total revenues dropped 15 percent in the three-month period to P2.86 billion from a year earlier.
“Mixed results were seen in the different platforms with radio and regional TV sales managing to pull ahead versus comparative period’s revenues, while core channel GMA 7 and GMA News TV 11 failed to make the cut,” GMA said.
Other revenue sources from overseas operations via GMA Pinoy TV, LifeTV and NewsTV, subsidiaries and digital platform packed a combined revenue of P403 million in the first quarter, a 7-percent improvement over a year ago.
“Driving the growth in this segment were revenues from GMA New Media, the company’s subsidiary engaged in the business of providing converging technology,” GMA said.
Operating expenses in the three-month period totaled P2.70 billion, up 4 percent from a year ago.
GMA Network said that in terms of ratings, it led its main competitor in nationwide urban TV ratings with an average people audience share of 42.1 percent in the first quarter, versus ABS-CBN’s 38.6 percent.
It said that in Mega Manila, GMA’s 49.7 percent average people audience share bested its rival’s 28.9 percent.