GMA Network Inc. saw its profits ballooning in the first semester, thanks to the surge in its advertising revenues and its growing consumer business.
In a filing with the stock exchange, GMA reported that its net income reached P3.67 billion in the first six months of the year, a 161-percent rise from P1.41 billion the year prior. Aside from its top line growth, GMA also said the reduction in corporate income taxes boosted its bottomline.
GMA’s revenues soared by 57 percent to P10.60 billion from P6.75 billion the year prior.
Ad revenues still comprise majority of its total revenues, growing by 61 percent to P9.89 billion in the first half from last year’s P6.15 billion. Its set-top box drove sales of goods which jumped by 236 percent to P256.57 million from P75.32 million.
“The upswing in revenues this year was heightened by the onset of the pandemic towards end-March of last year which drove revenues in April 2020 at one of its lowest levels. Furthermore, the non-renewal of closest competitor’s free-to-air radio and televisions broadcasting franchise middle of last year also boosted the company’s top line, owing to the shift in some advertising placements,” the filing read.
To recall, ABS-CBN Corp. lost its franchise last year after Congress declined to renew its Congressional license to operate.
GMA’s total operating expenses also increased by 25 percent to P5.91 billion from P4.74 billion.
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