GMA Network, Inc. reported a 161 percent surge in net income to P3.67 billion in the first half of 2021 from the P1.41 billion earned in the same period last year due to a recovery in advertising revenues and a lower income tax.
In a disclosure to the Philippine Stock Exchange, the firm said attributable net income gained 159 percent to P3.63 billion from P1.40 billion.
“Apart from the hefty gains from regular operations, this period’s noteworthy increase was further accentuated by the reduction in corporate income taxes from 30 percent to 25 percent” due to the CREATE Law, said GMA.
Consolidated revenues reached P10.6 billion in the first half of 2021, 57 percent higher than the P6.75 billion generated in the same period last year as advertising revenues rose 61 percent to P9.89 billion and offsetting the 14 percent drop in sale of services to P454.61 million.
The firm said all its airtime-revenue generating platforms yielded upbeat sales results versus same period last year.
Advertising revenues remained the lifeblood of GMA with a 93 percent share of the total consolidated revenue pie. Flagship channel GMA-7 continued to be the bread and butter of the Company comprising more than a third of total consolidated revenues for the period.
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 to one of its lowest levels.
Furthermore, the non-renewal of rival ABS-CBN’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 growth in this year’s top line was a result of the increase in both average rate per minute as well as total minutes load in between periods.
Radio operations followed with the next highest airtime sales contribution. Compared to last year, a solid increase of 41 percent was manifested by Radio business.
Sale of services included subscriptions income, subsidiaries’ operations and others.
Sale of goods further boosted the top line of the Company, owing to the successful launch of GMA Affordabox in the middle of last year and GMA Now towards year-end of 2020.