GMA Network Inc. reported net income falling 71 percent in the first half of the year due to the absence of election-related advertising.
The broadcast network said net income amounted to P1.18 billion in the January to June period, down from P4.1 billion last year.
In the second quarter alone, GMA posted net income of P580.5 million from P1.8 billion in the same period last year.
Consolidated revenue was down 29 percent to P8.45 billion from P11.94 billion last year. Of the total, advertising revenue fell 31 percent to P7.75 billion even as consumer sales grew 11 percent to P512.82 million.
GMA blamed the decline in revenue to the absence of political advocacies and advertisements, which amounted to P3 billion last year and to scaled down ad spending of major fast-moving consumer goods (FMCG) clients due to weak household spending brought about by higher inflation.
The network’s consolidated operating cost, including cost of sales, amounted to P6.9 billion, ahead by 4 percent compared to last year.
Of the total expenses, production costs amounted to P3.6 billion, up 5 percent from last year’s P3.4 billion, while general and administrative expenses amounted to P3.1 billion, up 1 percent compared to last year.
