GMA-7 posts 24 percent hike in H1 income to P1.689 billion.
GMA Network sustained its strong financial performance for the first half of 2010 even after the revenue windfall from political advertisements that ended in early May. The company’s bottomline for the covered period grew by 24 percent to P1.689 billion from last year’s P1.361 billion.
Consolidated revenues increased by 19% to P7.565 billion from P6.335 billion record made during the same period in 2009. In nominal terms, the increase of P1.230 billion in revenues for the six-month period almost equaled the P1.274 billion improvement recorded during the full year 2009.
All business units made positive revenue contributions for the said period. Parent company Channel 7 registered an 18% jump in revenues to P6.414 billion in the first half; Q Channel 11 recorded a 17 percent revenue hike to P251 million; while GMA International increased revenue contributions by 11% to P462 million.
Radio recorded the highest revenue increase of 111 percent to P337 million.
Meanwhile, operating expenses (OPEX) amounting to P4.133 billion grew by 18% on a year-on-year basis. The hike in OPEX was mainly driven by higher production costs of primetime and weekend variety programs, addition of network-produced programs that replaced canned materials in the late afternoon grid, and the election coverage costs.
Total assets grew by 8% to P13.309 billion due to the P1.649 billion increase in cash driven mainly by political advertisements. Total liabilities remained at par with previous year at P2.927 billion. Based on the report, the Kapuso Network had a debt-free status by end of the second quarter.
GMA Network chairman, president, and CEO Atty. Felipe L. Gozon believes that the Company keeps a confident posture in the broadcast industry amidst competition and is on track in reaching, and even surpassing its 2010 bottomline targets. “Coming from a very good first semester, I am confident that GMA can still deliver strong financial and ratings performance in the second half,” Gozon was quoted as saying in a press release from GMA-7.
INTERNATIONAL PRESENCE
The Kapuso Network maintains a strong presence overseas through its international channels, namely, GMA Pinoy TV (GPTV) and GMA Life TV (GLTV). GMA International recently launched both channels in Brighthouse Florida and En-Touch Texas. GLTV, meanwhile, made a debut in Comcast Central California and Hong Kong through PCCW this May.
GPTV is slated to roll out in Comcast Beltway Region (Washington DC and Northern Virginia) in September, while GLTV will launch in Comcast Houston in October. Both channels have penetrated markets in the US, Canada, Europe, Middle East, North Africa, Australia, New Zealand, Japan, Guam, Papua New Guinea, Singapore, Hong Kong, and many other territories.
By the end of June 2010, GPTV registered a subscriber count of 256,000, up by 18% from the same period in 2009. Of the said number, 122,000 are also subscribers of GLTV, up 9% year-on-year. The viewer counts are estimated at 1. 6 million and 965,000 for GPTV and GLTV, respectively.
On the other hand, GMA Network’s distribution and acquisition subsidiary, GMA Worldwide, Inc. (GWI), closed contracts amounting to US$280,000 for the entire year, of which, US$151,000 worth of sales were realized for the first six months of 2010 through syndication of locally produced programs to neighboring countries and as far as Africa, Alaska, the Middle East, and North America.
June saw the entry of the Network’s adaptation of MariMar into China. It will air in Mandarin through China’s national television station to over one billion viewers.
UPGRADING FACILITIES
Locally, GMA Network continues to strengthen its presence in key provinces nationwide. During the period, GMA-7 Engineering completed the commissioning of TV relay station upgrades in San Jose City, Occidental Mindoro; Dipolog, Zamboanga del Norte; Ozamiz City, Misamis Occidental; Tacloban, Leyte, and Kalibo, Aklan.
The group continues signal and facility upgrade projects in Virac, Cantanduanes; Ormoc City, Leyte; Tagbilaran, Bohol; Santiago City, Isabela; Zamboanga City; Jalajala, Rizal, and Mt. Caniao, Bantay, Ilocos Sur.
TV RATINGS
Meanwhile, GMA-7′s regional newscasts, namely, Balitang Amianan (Dagupan), Ratsada (Iloilo), Balitang Bisdak (Cebu), and Testigo (Davao) registered significant ratings improvement since starting a back-to-back airing with GMA-7′s flagship newscast 24 Oras in April. Alongside, Regional TV’s election specials—the localized version of Isang Tanong across the four mentioned areas—beat their counterpart programs from ABS-CBN.
In terms of TV ratings, GMA Network was able to beat rival station ABS-CBN in viewer-rich Mega Manila during the second quarter of 2010, according to the TV ratings service Nielsen TV Audience Measurement.
Mega Manila comprises 55% of total urban television households nationwide. It includes Metro Manila and suburbs—parts of Bulacan, Pampanga, Cavite, Laguna, and Rizal.
From April to June 2010, GMA-7 remained the highest-rated free-to-air TV channel in Mega Manila based on Neilsen’s people data. GMA-7 was ahead of ABS-CBN in the said area with an average total day (6 a.m. to 12 midnight) people share of 34.6%, up by 0.8 percentage point versus competition’s 33.8%. In people rating, GMA-7 registered 6.3%, representing a slim margin of 0.1 percentage point over competition’s 6.2%.
Excluding specials, 16 GMA-7 programs formed part of the top 30 programs in Mega Manila. Of the top five programs on chart, three were produced by the Kapuso Network: The Last Prince, Diva, and Endless Love.
During the 2nd quarter, 12 of GMA-7′s 21 program launches beat counterpart programs from ABS-CBN. GMA News and Public Affairs’ Aha!, Sunnyville, and Pinoy MD delivered notable ratings performance during their debut, alongside GMA Entertainment TV’s (ETV) Basahang Ginto and Trudis Liit (on weekday afternoon block), Lovebug (on weekend afternoon block), and Endless Love (on weekday primetime).
In July, GMA Network pulled away from the tight ratings match and once more established confident ratings margins over ABS-CBN. People data from July 1 to 31 showed GMA-7 leading in total day (6 a.m. to 12 m.n.) average audience share by 5.6 points with 37.5% versus ABS-CBN’s 31.9%. In people rating, GMA-7 led the rival station by one point with 6.5 points against the latter’s 5.5.
GMA N&PA, meanwhile, made a runaway ratings performance with a series of special coverage this 2010. During the historic national elections, GMA-7′s Eleksyon 2010 posted a 12.3 TV ratings average from May 10 to 11 based on Mega Manila household ratings, vis-à-vis ABS-CBN’s average of 10. The May 10 average of Eleksyon 2010 was also higher at 12.6%, compared to ABS-CBN’s 11.1%.
Last June 30, N&PA also delivered the inauguration coverage billed Panata sa Pagbabago, which got a commanding 13.2% for people ratings as against the 9.6% of ABS-CBN’s Panunumpa sa Bayan. And just recently, GMA’s SONA 2010 bested ABS-CBN’s Boses ng Bayan with a 5.8-point lead in household ratings—with SONA 2010 earning 21.1% compared to the other station’s 15.3%.
Nationwide, July to August 4 survey (August 1 to 4 based on overnight data) showed GMA-7′s programs across daytime slots winning over their ABS-CBN counterparts. National Urban Television Audience Measurement (NUTAM) people data showed that viewers preferred Danz Showdown, Trudis Liit, Basahang Ginto, Hole in the Wall, Queen Seon Deok, and Mel and Joey over opposite programs in ABS-CBN’s grid.
Television’s longest-running noontime show, Eat Bulaga! (EB), also bested the newly launched Pilipinas Win na Win! (PWW) of ABS-CBN in NUTAM from August 2 to 9 (based on overnight data). EB went ahead of PWW by 0.8 household rating point, and by 0.9 people rating point nationwide.
In Urban Luzon, where 77% of TV households nationwide are found, GMA-7′s Danz Showdown, Trudis Liit, Basahang Ginto, Hole in the Wall, Diva, Queen Seon Deok, Bubble Gang, Kapuso Mo, Jessica Soho, Imbestigador, 24 Oras Weekend, Mel and Joey, Pepito Manaloto, and Kap’s Amazing Stories also registered higher ratings compared to ABS-CBN’s programs during the covered period.
Nielsen translates one rating point to approximately 390,620 viewers in NUTAM; 299,630 in Urban Luzon, and 214,620 in Mega Manila.
In the coming months, GMA-7 will roll out more exciting programs namely: Asar Talo Laging Panalo, East of Eden, Survivor Philippines Celebrity Showdown, and a whole lot more.
Meanwhile, GMA Films, in a co-production with Viva Films, will premiere In Your Eyes starring Claudine Barretto, Anne Curtis, and Richard Gutierrez in theaters this August 18.
