GMA Network eyes 10% hike in revenues by end-December

THANKS to this year’s mid-term elections, broadcasting giant GMA Network Inc. expects to grow its revenues by more than a tenth by year-end.

Felipe L. Gozon, the company’s chairman, said his group aims to increase its top line by 12 percent this year, as ad revenues from the elections this quarter were “substantial.”

“While the network experienced slight declines in revenues in 2018, I am confident this year will bring better financial results because of election-related revenues, as well as those from our recurring advertising sales. We target to increase our 2019 revenues by 12 percent,” he said.

Gozon noted ad revenues from a “presidential election” are higher compared to a senatorial race.

The whole TV industry has suffered crippling revenues due to declining ads in recent years, save for election periods.

For GMA, its consolidated revenues inched down by 2 percent to P15.24 billion in 2018 versus 2017, leading to a 9-percent decline in profits to P2.32 billion during the same comparative periods.

But for the first quarter of 2019, its net income surged by 69 percent to P721.76 million, as its revenues grew by 14 percent to P3.8 billion.

Operational expenses increased by only 4 percent.

In another development, Gozon said his group is celebrating a “milestone” in its digital journey with the official transmission of its digital TV using UHF Channel 15.

The network is currently in the final stretch of preparations for the launch of MyGMA Go, its mobile Digital Terrestrial Television (DTT) service that will “revolutionize content-consumption habits by combining digital TV viewing and the elements of mobile interactivity.”

These so-called dongles will be offered through a partnership with PLDT Inc. A total of 4 million devices will be covered by the contract.

The device, which will initially be available for android smartphones, will have a complimentary app so that users can watch “GMA’s exclusive channels that will include an secondary general entertainment channel, Asian telenovela channel, Korean music and variety channel, and a concert channel, and other free-to-air channels without a need for an active Internet connection.”

Gozon said this new device will have “features” that will enhance the viewing experience of consumers.  It will be launched within “the second half of the year,” he said.

https://businessmirror.com.ph/2019/05/16/gma-network-eyes-10-hike-in-revenues-by-end-december/