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Saturday, July 13, 2024

GMA books lower income; ABS-CBN’s net loss widens to P2.2b

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GMA Network Inc. reported lower earnings, while rival ABS-CBN Corp. saw its net loss widen in the first half in the absence of election-related advertising this year.

GMA Network said net income amounted to P1.18 billion from January to June, down from P4.1 billion it earned in the same period last year. It said second-quarter profit also fell to P580.5 million from P1.8 billion.

Consolidated revenues went down by 29 percent to P8.45 billion from P11.94 billion last year. Advertising revenues went down 31 percent to P7.75 billion, while consumer sales grew 11 percent to P512.82 million.

The Gozon-led network blamed the decline in revenues to the absence of political advocacies and advertisements, which amounted to P3 billion last year and the scaled-down ad spending of major fast-moving consumer goods clients due to weak household spending brought about by higher inflation.

Consolidated operating costs including cost of sales amounted to P6.9 billion, ahead by a low single-digit rate of 4 percent compared to last year.

It said of the total expenses, production costs amounted to P3.6 billion, up 5 percent from last year’s P3.4 billion, while general and administrative expenses amounted to P3.1 billion, up 1 percent compared to last year.

Meanwhile, ABS-CBN said net loss reached P2.2 billion in the first six months, up by 52.2 percent from P1.4-billion net loss it logged in the same period last year.

ABS-CBN said it registered a net loss of P1.01 billion in the second quarter, also bigger than P249.8 million last year.

ABS-CBN said after adjusting for non-recurring and one-time gains last year amounting to P 1.191 billion from political ads, asset sale and one-time expenses, net loss actually decreased by P 426 million or 16.1 percent compared to last year.

ABS-CBN said the 16.1 percent improvement was brought about by better ad sales and lower cost.

Consolidated revenues reached P8.8 billion, down by 7.2 percent from P9.4 billion last year. Regular advertising amounted to P2.9 billion, down 9.1 percent, while consumer sales fell 6.3 percent to P5.8 billion.

ABS-CBN said total costs and expenses amounted to P10.6 billion, down by 7 percent from P11.4 billion last year.

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