GMA Network, Inc. (GMA) reported a 76 percent fall in its consolidated net income during the first quarter of the year (2014) to P325 million from the P601 million earned in the same period in 2013. In a press briefing, the firm said earnings was lower as recurring revenues (excluding the impact of election-related advertisements) dipped 4 percent to P2.85 billion in the first quarter of 2014. The political ads from last year’s midterm elections boosted the Network’s earnings in 2013. Thus, consolidated revenues during the first quarter of this year actually dropped 12 percent versus a year ago.
GMA said effective management helped it reduce its operating expenses by less than one percent to P2.36 billion in between periods. The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by 31 percent to P823 million. GMA International, which manages the operations and distribution of the Network’s international channels, and GMA News TV, the country’s number one news channel, posted positive results, while local regional sales proved to be an emerging revenue source.
Despite its performance in the first quarter, the GMA’s management remains optimistic in reaching its targets for the year. “We expect better numbers in the next few months as our top advertisers have already committed their placements,” said GMA chairman Felipe L. Gozon. He added that “we are confident that our diverse line-up of upcoming shows will help us regain our lead in nationwide ratings and boost our earnings for the coming months.” Meanwhile, GMA will pay out cash dividends to its shareholders worth P1.31 billion at 27 centavos per share on May 19, 2014.
Source: Manila Bulletin
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