GMA Network, Inc. saw a 69% decline in its attributable net income to P581.51 million for the second quarter from P1.88 billion a year ago after booking lower advertising revenues.
The network’s revenues from April to June amounted to P4.44 billion, 26.9% lower than the P6.08 billion booked in the corresponding period last year.
“Despite election campaigns culminating only up to the first week of May 2022, political advertisements during that quarter were even higher versus the first quarter of the same year,” the company said in its quarterly report.
Production costs and cost of sales were higher by 4% and 9.7% to P1.99 billion and P81.25 million, respectively.
During the quarter, the company’s general and administrative expenses dipped by 1% to P1.61 billion from P1.63 billion in the previous year.
GMA’s first-half attributable net income reached P1.19 billion, 70.3% lower than the almost P4 billion profit seen in the same period last year.
The company’s top line totaled P8.46 billion in the first half, a 29.2% increase from the P11.94 billion booked last year due to lower advertising revenues.
For the six months ended June, GMA’s advertising revenue reached P7.75 billion, a 31% drop from the previous year’s P11.3 billion.
“Advertising revenues remained the lifeblood of the Company, comprising more than 90% of the total revenue pie. This segment was also the hardest hit due to the absence of election-related placements this year,” the company said.
Production costs and cost of sales were higher by 4.9% and 24.9% to P3.66 billion and P186.44 million, respectively.
GMA also incurred higher general and administrative expenses in the first six months of the year which amounted to P3.1 billion, a 1.4% increase from the P3.05 billion recorded in the previous year.
At the stock exchange on Monday, shares in GMA declined by 17 centavos to P8.81 each. — Justine Irish D. Tabile