GMA Network Inc., the largest broadcast network in the country, said Tuesday reported a dramatic drop in first-quarter net income to P602.3 million from P2.13 billion in the same period last year, when revenue secured a strong boost from political advertisements ahead of the 2022 presidential elections.
Total first-quarter revenue fell 31 percent to P4.02 billion even as sale of goods posted a 17 percent increase to P108.2 million in the first three months of 2023.
“Advertising revenues remained the lifeblood of GMA, comprising more than 90 percent of the total revenue pie. Compared to same period in 2022, it was also the biggest source of the drag, with a contraction of P1.83 billion, mainly due to the absence of incremental sales from last year’s elections placements,” the broadcast network that trade under the symbol GMA7 disclosed to the stock exchange.
“Despite lukewarm sales performance during the quarter, operations have returned to pre-pandemic levels, with costs also rising due to more fresh episodes produced as well as the resumption of face-to-face activities,” it added.
Total operating expenses rose 6 percent to P3.26 billion in the first quarter, with production cost accounting for about half or P1.67 billion.
