GMA net profit down 35% in H1

MANILA, Philippines - Net profit of GMA Network Inc. declined 35 percent in the first half due to the absence of political advertisements.

In a statement yesterday, GMA said its net income reached P1.55 billion in the first six months, down from P2.38 billion in the same period last year.

GMA attributed the lower net income result to the lack of political ads this year.

Political advocacies and advertisements contributed P1.49 billion to GMA’s top line in the first half of last year.

GMA’s consolidated revenue slid 12 percent in the first semester to P7.70 billion from P8.76 billion in the same period a year ago.

Operating expenses, meanwhile, went up three percent in the first half.

Despite the lower net income result in the first six months, the firm remains optimistic it would achieve this year’s target.

“We will still try to accomplish our year-end financial target as we have entered the second half of the year. We are very excited about our new programs, particularly on our primetime block, as well as other business opportunities that are expected to unfold within the year,” GMA chairman and chief executive officer Felipe Gozon said.

GMA has set a net income target of P3.9 billion for this year.

Last year, net earnings of GMA hit an all-time high of P3.65 billion amid strong revenue growth.