GMA Network Posts P3.4-B Consolidated Gross Revenues in Q3

The Kapuso network continues aggressive national and international expansion efforts.

Cognizant of its corporate objective to further solidify its nationwide ratings leadership and presence in key Filipino international markets, GMA Network, Inc. (GMA) continues to firm up its aggressive local and global expansion efforts this 2011.

GMA pulled sound business performance to back the expansion, increasing consolidated gross revenues by two percent or P72.4 million to P3.384 billion this third quarter from P3.311 billion made during the same period in 2010. This is despite a relatively weaker market vis-à-vis third quarter of last year.

For the nine-month period, GMA’s consolidated top line recorded an increase of 15 percent or P1.287 billion to P10.109 billion, minus the impact of 2010’s political advertisements worth P2.054 billion in 2010. In fact, the industry’s top 30 advertisers grew their advertising accounts with the Company by 36 percent or over one third from last year for the period January to September.

Airtime revenues from television and radio contributed the bulk of revenues worth P9.253 billion, up 16 percent from last year’s top line made of regular advertising load.

GMA’s top performing business unit and the Philippines’ most watched television station GMA Channel 7 grew its regular advertising revenues by 19 percent or P1.376 billion to P8.665 billion; while Radio’s recurring ad revenues grew by seven percent or P18.9 million to P306.7 million.

GMA Regional TV (RTV) provided an unprecedented revenue growth driven mostly by strong local sales. In all, RTV increased its revenues from recurring national and local advertising by almost half to P117.7 million.

Meanwhile, GMA International posted a modest three percent growth in revenues to P718.9 million by end of the nine-month period owing to the appreciation of the peso against the dollar. In dollar terms, however, revenues from international operations improved by six percent year-on-year.

GMA Chairman and CEO Atty. Felipe L. Gozon looks forward to better prospects for 2012 after heavy investments made this 2011. “I am positive that the Company has a better outlook going forward. GMA delivered fairly good business performance amid a non-election year,” Gozon said.

Operating expenses (OPEX) for the said financial period amounted to P6.530 billion, up by six percent from last year’s P6.181 billion.

A huge chunk of the Company’s OPEX was devoted to the continuing pursuit to deliver superior programming with the airing of the pioneering epic-serye on Philippine television, the top-rating mega production – Amaya. Likewise, part of the amount backed International’s subscriber generation efforts that hooked around two million and one million global viewers for flagship international channel GMA Pinoy TV (GPTV) and lifestyle channel GMA Life TV (GLTV), respectively.

Both channels continue to penetrate new markets in key Filipino hubs abroad via a number of channel carriers – in Australia via FetchTV; in Hawaii via Hawaiian Telecom; in Central Florida via Brighthouse; in New Jersey, Pennsylvania, Delaware, Michigan, and Seattle via Comcast; and in North and South Carolina, Upstate New York, and Massachusetts via Time Warner. GPTV also launched in Papua New Guinea via Tolec Electronics and in Sacramento via SureWest Broadband, while GLTV is now seen in Houston via Comcast.

Meanwhile, the international edition of the Philippines’ number one news channel GMA News TV (GNTV) can now be seen via Fetch TV (Australia), GTA TeleGuam, IPS Japan, and UBI World TV Australia and New Zealand.

GMA International likewise initiated the launch of flagship radio stations DZBB (AM band) and DWLS (FM band) in Fetch TV (Australia), Hawaiian Telecom, and Time Warner North and South Carolina and North East Region this third quarter.

The Network, thru its syndication and acquisition arm GMA Worldwide, Inc. (GWI), generated USD377,000 through sale of locally produced films/programs this third quarter in Hawaii, China, Taiwan, Tanzania, Malaysia, Brunei, and Kenya. For the nine-month period, GWI hit USD781,000, or 85 percent of its total sales target this 2011.

Likewise, the Network continues to allot multi-million worth of investments to fortify its equipment and infrastructure in key regions in the country. Its signal, which arguably has the widest reach among the country’s free-to-air channels, can cover approximately 95.7 percent of national urban television households.
GMA’s originating stations in Dagupan, Cebu, Iloilo, and Davao, as well as its satellite stations in Naga, Bacolod, Cagayan de Oro, and General Santos, contribute positively to the Company’s top line. This is due to RTV’s high rating local programs, its strong partnerships with local and national advertisers, and an aggressive promotional blitz which further grew the Network’s viewership nationwide and established its leadership in National Urban Television Audience Measurement (NUTAM) ratings.
Online, the Network has successfully established GMA News Online ( as the number one local news website visited by Internet users in the Philippines. This is according to data of Effective Measure, the Australian company recently named by leading Philippine online publishers as the official third-party audience measurement provider.

As part of the network’s corporate strategy to diversify its revenue-generation streams, GMA New Media, Inc. (NMI), the Network’s digital arm, sets the incorporation of Gamespan in its online operations. The launch of this online gaming in the fourth quarter of 2011 is in joint venture with Manila Jockey Club, Inc. (MJCI).

In line with its diversification strategy, NMI recently spun off one of its production units to form “Digify,” a technocreative lab that seeks to complement the brand-building capabilities of traditional agencies and add value to their business. The recently formed unit will provide end-to-end solutions for standalone and integrated digital campaigns. NMI’s Technocreative Unit, through years of exposure in both traditional and emerging media, has developed an expertise in digital branding, digital communications, multimedia content production and convergent end-to-end media solutions.

GMA’s official web portal,, will soon be launched this balance 2011. The portal will allow users to get quick and easy access to all Network properties and subsidiaries, such as Entertainment, News, International, Kapuso Foundation, Records, Film, Radio, Artist Center, and Investor Relations.

Owing to the aggressive expansion projects, the Company finished the first nine months with earnings before interests, taxes, depreciation, and amortization (EBITDA) of P2.717 billion, and net income after taxes worth P1.580 billion.

On television, the broadcast giant reinforced its leadership in nationwide ratings this partial November, according to data of the industry’s most widely trusted ratings service provider Nielsen TV Audience Measurement.

In fact, GMA was the only television station that showed a steady increase in nationwide audience share from September till partial November. In contrast, competitors ABS-CBN’s and TV5’s audience shares were on the downtrend for the said period.

Based on partial November data (November 1 to 7 based on overnight readings) nationwide, GMA posted an average of 36.8 total day (6am-12mn) household audience share points, or an impressive 8.5-point lead over ABS-CBN’s 28.3; and a whopping 20.9-point margin over TV5’s 15.9 points.

Using the assumption that there are five viewers per household, GMA’s lead would mean that it had about 1.6 million more viewers from all over the country than ABS-CBN; and almost four million more viewers than TV5 in partial November.

GMA’s strong win nationwide was most pronounced in the afternoon block, where it posted a double-digit advantage over its competitors this partial November. GMA likewise posted double-digit advantage in the morning block for the said period.

Similarly, in the viewer-rich areas of Urban Luzon (which comprises 77% of total television households nationwide) and Mega Manila (which comprises 58% of total television households nationwide), GMA registered impressive ratings performance from daytime till primetime in partial November.

In Urban Luzon, GMA finished the said month with 40.6 share points, dominating ABS-CBN’s 24 points and TV5’s 16.6 points.

GMA’s lead over ABS-CBN translates to almost 2.5 million more viewers. Over TV5, GMA had about 3.6 million more viewers.

In Mega Manila, GMA posted its highest margins in total day household audience share points with 41.3 as against ABS-CBN’s 22.4 points and TV5’s 17.5.

In this Kapuso-bailiwick, GMA had almost 2.2 million more viewers than ABS-CBN; and over 2.7 million more viewers than TV5.

The Nielsen TV Audience Measurement used by GMA is also used by 21 companies including two other local networks, namely, TV5 and Solar Entertainment; Faulkner Media; CBN Asia; 13 advertising agencies and three regional clients. On the other hand, ABS-CBN is the only local major TV network reportedly subscribing to Kantar Media, formerly known as TNS.

In Mega Manila alone, the Nielsen TV Audience Measurement has a sample size of 800 homes as compared to Kantar Media’s 770 homes. Nationwide, Nielsen has a total sample size of 2,005 homes compared to the lower sample size of 1,370 utilized by Kantar Media.

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