GMA Network Inc. of the Gozon-Duavit-Jimenez group is the biggest winner in the fall of former media giant, ABS-CBN, as profits tripled due to the influx of television and online advertising and strong demand for its digital TV boxes.
GMA network reported a P2.5 billion profit in the third quarter this year, 199 percent higher than the P835 million it posted during the same period last year. Revenues surged 37 percent to P5.905 billion from July to September this year from P4.303 billion a year ago.
Overall, GMA’s third quarter profits accounted for 63 percent of its P3.895 billion profits through the first nine months this year.
GMA pointed out that last year’s profits were bumped up by non-recurring election-related revenues of P758 million.
“The closure of biggest rival, ABS-CBN, due to the expiration of their broadcast franchise last May 5 and the subsequent denial last July 10 by the House Committee on Legislative Franchises of ABS-CBN’s new application also contributed to the increase in sales due to the shift in some advertising placements,” said GMA.
“This development partly counterbalanced the general reduction in sales brought about by the slowdown in economic activities due to the pandemic/Enhanced Community Quarantine (ECQ),” it added.
GMA said advertising revenues from TV, online and international jumped nine percent in the first nine months this year (minus the election bonanza).
“The considerable increase in TV advertising, particularly during the third quarter propelled the growth in YTD (year-to-date) airtime sales and wiped out the setback in the second quarter during the height of the pandemic. All airtime-revenue generating platforms enjoyed top-line gains versus a year ago. The upswing in advertising revenues was further boosted by online/digital sales, which, for the past nine months posted the biggest improvement percentage-wise at 36 percent,” said GMA.
The windfall from ABS-CBN’s closure was so massive GMA’s fortune turned around from a 41 percent drop in sales as of end-June this year to a 12 percent rise as of the end-September this year. GMA said even its regional TV stations booked a staggering 37 percent rise in ad sales.
“Despite the shift to UHF from VHF and the onset of the pandemic/community quarantines, the revenues of the channel also benefitted from the ripple effect of fully loaded programs in Ch-7. News programs were the lifeblood of the channel, generating majority of the revenues for the nine-month period and doubling last year’s sales. Drivers for News were 24 Oras’s simulcast airing in GNTV plus the weekend airings of 24 Oras Weekend. Dobol B sa News TV also registered improvements in revenues in between years,” said GMA.
GMA also posted a 25 percent growth in subscription revenues to P1.19 billion in the first nine months this year after it sold over 600,000 digital TV boxes since the product launch in June 2020.