GMA earnings drop, ABS-CBN loss widens

LISTED media and entertainment companies GMA Network Inc. and ABS-CBN Corp. on Tuesday both reported weak performances in 2023 largely on the absence of political advertisements.

GMA Network — jointly owned by Felipe Gozon, Gilberto Duavit Jr. and Joel Marcelo Jimenez — said in a stock exchange filing that its net income fell to P3.16 billion last year from P5.46 billion in 2022.

The Gozon-led media giant said consolidated revenues dropped to P18.64 billion from P21.56 billion as advertising revenues — which comprised 92 percent of its consolidated revenue pie — shrank by 15 percent to P17.84 billion.

There were mixed results in various revenue streams, it added.

The flagship channel, GMA 7, and radio operations were hit hard by the lack of political advertisements, while other revenue streams, channels and other business divisions saw earnings improve, thanks to innovations and new offerings.

Lopez-led ABS-CBN, meanwhile, said its losses widened to P12.83 billion in 2023 from a net loss of P2.64 billion in 2022 as impairments weighed on the bottom line.

Consolidated revenues were flat at P18.51 billion against the previous year’s P18.55 billion.

Regular advertising revenues grew 16 percent to P6.7 billion while consumer sales rose 7 percent to P11.8 billion, noting that there were also lower subscription sales of its subsidiary Sky Cable.

ABS-CBN said that it continued to explore and pursue other business relationships with local and foreign entities to ensure the maximum exposure and monetization of its content assets.

These include launching new channels, partnering with other stations, ramping up content sales, co-productions, and licensing of its content and library to both domestic and international clients, utilizing various third-party platforms to maximize its reach and generate advertising.

The media firm added that its film and digital divisions also delivered marked improvements in their businesses last year while the music and talent divisions saw their revenues and performances enhanced.

GMA shares fell 0.45 percent to P8.85 each on Tuesday while ABS-CBN shares plunged by 16.46 percent to P3.30 apiece.