GMA sees rebound in 2012

MANILA, Philippines - Broadcast company GMA Network Inc. expects to bounce back this year with its net profit seen to hit nearly P3 billion on the anticipated resurgence in advertising ahead of the national elections as well as new revenue streams, its top executives said yesterday.

In an interview, GMA chairman Felipe Gozon said the network, which is likely to post a P1-billion drop in net income last year from the P2.8 billion reported in 2010 due to the cutback on advertising spending, is upbeat on its prospects this year especially with the lineup of new powerhouse programs, improving advertising spending, and continued strong nationwide ratings.

GMA president Gilberto Duavit added that around 70 percent of this year’s ad target has already been booked.

Duavit said the network also expects advocacy ads to start coming on line in the latter part of the year, which should boost its ad revenues.

Gozon said GMA though continues to adopt a cautiously optimistic stance because of the lingering economic concerns in Europe and the US.

The network was originally looking at a P3-billion net income in 2011 but had to revise it downwards due to the absence of political ads and the impact of the global crisis on local advertisers.

Major multinational firms such as Unilever, Procter and Gamble, Nestlé, Pfizer and Johnson & Johnson, cut back heavily on ad spending.

Gozon said the network continues to allot multimillion-pesos worth of investments to fortify its equipment and infrastructure in key regions in the country.

In terms of subscriber growth, its international channel Pinoy TV is expected to post a 10-percent growth due to additional platforms like IPTV and satellite television in addition to cable TV. Pinoy TV is GMA’s broad audience program channel in the international market.