GMA 7 more than doubles net profit to over in 2015

GMA Network is expected to announce that its net income last year more than doubled to over R2 billion from R1.01 billion as it begins to feel the benefits of political ads in the run-up to this year’s presidential elections.

In an interview, GMA chairman Felipe L. Gozon said they are looking at even better results for 2016 as both profit and airtime revenues will be buoyed by political ads as well as their annual adjustment in advertising rates.

Gozon said growth is seen to be strong this year although he cannot say if higher rates and election spending will allow them to again double last year’s figures.

“Its hard for me to say 100 percent. That’s a big number,” he pointed out.

Gozon said earlier that its ad revenues also continue to recover amid improving audience ratings. GMA’s net income already reached R1.8 billion for the first nine months of 2015, up by almost 80 percent over the same period last year.

“October has been very good and we are doing well in November so I expect 2015 will be very financially rewarding for GMA,” he said.

Gozon added that “we are optimistic that GMA’s performance will continue to exceed expectations as indications point to our continued dominance across all platforms. We hope to further establish what we have achieved this year in 2016.”

GMA’s strong financial performance in the first semester continued into the third quarter of 2015 with both its airtime revenues and nationwide ratings effectively maintained at an optimistic level.

Revenues during the third quarter improved by 17 percent to R3.66 billion, while net income soared 66 percent to R706 million as airtime revenues and consolidated sales from international operations, subsidiaries and other revenue streams exceeded that of last year.

By the end of the first nine months, the company’s revenues stood at R10.31 billion, 16 percent higher than 2014.