GMA Network Inc. on Thursday reported a 49 percent decline in net profit in the first half of the year that it attributed to lower advertising revenue.
The Gozon-led broadcasting company posted net income of only P602 million in the January to June period from P1.18 billion in the same period last year.
In the second quarter alone, its net income fell 26.7 percent to P566.73 million from P774.03 million last year.
Consolidated revenue amounted to P7.77 billion, lower by 8 percent from last year’s top line of P8.46 billion.
Advertising revenue amounted to P7.14 billion, down 8 percent from last year’s P7.75 billion. Sales of goods also posted a 40 percent decline to P115.58 million. These declines were only slightly offset by a modest improvement in service sales, which increased by 0.2 percent to P513.69 million.
“Airtime revenue remained challenged with the changing landscape in viewer and advertiser behavior as major factors. With this, the company has ensured that it is keeping pace with these developments and has continuously made progress in positioning itself in the digital/online arena,” GMA said.
The past six months this year, online/digital advertising (advertising video on demand or AVOD) bagged sales higher by 7 percent from last year.
Total consolidated operating expenses amounted to P7.08 billion, higher by 2 percent a year earlier.
Direct production costs rose 2 percent to P3.9 billion even as general and administrative expenses also increased by 2 percent to P3.17 billion.
Cost of sales fell 41 percent to P110.09 million corresponding to a lower volume of set-top box units sold during this period compared to the first half last year.
