GMA Network Inc. on Wednesday said its net income fell 52 percent in the first nine months when none of the expected political advertisements were forthcoming.
The Gozon-led broadcasting network posted a net income of only P2.5 billion in the January to September period, down from P5.1 billion in the same period last year.
The network’s consolidated revenue totaled P13.76 billion, 18 percent lower than P16.75 billion posted last year, which includes the extraordinary boost from the 2022 national elections.
Advertising revenue amounted to P12.68 billion, down 20 percent from P15.77 billion last year.
“Household spending, which is one of the biggest contributors and key drivers of growth in the local economy, has weakened amid elevated inflation and rising borrowing costs,” GMA said.
“As a result, major fast-moving consumer goods clients of the company which largely bank on individual purchasing power have likewise scaled down their ad spending,” it added.
GMA merchandise sales the past nine months totaled P268 million, 1 percent higher than last year’s P266.02 million, driven mostly by the sale of terrestrial digital television receiver sets called GMA Affordaboxes.
The company said the number of set-top box units sold was 12 percent higher this year than in 2022.
But no matter the hike in quantities sold, the revenue growth posted by GMA Affordaboxes was only in single digit due to price cut first implemented in July last year.
Since its launch in mid-2020, some 2.7 million GMA Affordaboxes have been sold.
Consolidated costs, including cost of sales, total P10.59 billion or an increase of 5 percent versus a year ago.
Direct production costs edged up last year by 8 percent while general and administrative expenses were marginally higher by 0.2 percent.
“Despite the economic challenges, management made a deliberate effort to control expenses while ensuring the company’s commitment to providing high-quality entertainment and responsible news delivery to its viewers remains a priority,” GMA said.
