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GMA Network consolidated revenues in Q2 soar 14 percent to P3.587 billion vs. Q1

Top line record further surges in July

Quezon City , Philippines (August 2, 2011) – – Leading broadcast company GMA Network, Inc. (GMA) showed strong momentum in the first half of 2011 as it improved regular advertising revenues and nationwide ratings – the industry players’ two most important performance indicators – quarter-on-quarter.

Given GMA’s sustained nationwide dominance since the start of the year, GMA posted a 14 percent increase worth P449 million in consolidated revenues to P3.587 billion in the second quarter from the previous quarter’s P3.138 billion.

Airtime revenues across all platforms were on the uptrend due to the outstanding program performance on television and radio.

Top performing business unit Channel 7 delivered P3.093 billion worth of revenues, 14 percent higher than the amount earned during the first quarter, while newly launched all-news channel 11 GMA News TV (GNTV) made 30 percent more revenues at P58 million.

GMA Regional TV (RTV), on account of stronger programming and aggressive promotional efforts in the regions, recorded a 38 percent increase in its top line contribution at P46 million, while GMA Radio generated P97 million, 15 percent higher than the amount made in the January to March period.

GMA International, which continues to widen the Network’s reach overseas, made P239 million during the second quarter, four percent up from the previous quarter’s P230 million — despite the appreciation of the peso versus GMA International’s foreign-denominated revenues. This is due to GMA’s unrelenting expansion and subscriber generation and retention efforts that won over 279,000 subscribers for flagship international channel GMA Pinoy TV (GPTV) and 121,000 subscribers for GMA Life TV (GLTV).

The figures translate to an estimated 1.85 million viewers for GPTV and one million viewers for GLTV. The GMA International channels remained competitive with robust subscriber take-up despite the prolonged US recession and the weak demand for subscription in some parts of the Middle East and in Japan during the period. Several countries in the Middle East were rocked by political turmoil, while northeastern Japan was devastated by an earthquake and tsunami during the period.

GMA International’s linear channels continued to penetrate new markets in key Filipino-American hubs in the US, namely New Jersey, Philadelphia, Pennsylvania, Virginia, Maryland and Washington DC. They were also launched in many parts of Detroit , Hawaii and upstate New York and New England . Elsewhere, the channels were also launched by additional carriers in Australia and Papua New Guinea .

GMA International recently started distributing its third channel, the international edition of GMA News TV (GNTV). Fresh from its launch this July, GNTV - International is now airing in Japan , Australia , Guam, and Papua New Guinea and will soon expand distribution to key markets in the Middle East and North America to better serve expatriate Filipinos hungry for news from home.

On the other hand, GMA’s syndication sales and acquisition arm, GMA Worldwide, Inc. (GWI), reported P8 million worth of revenues this second quarter on strong sales in China, Nigeria, Vietnam, Malaysia, Singapore, and Cambodia.

Along with the double digit growth in gross revenues for the second quarter, total operating expenses (OPEX) grew 16 percent as the Company set a higher programming benchmark especially for primetime productions, namely, Amaya and Captain Barbell.

Meanwhile, general and administrative expenses (GAEX) were up by 12 percent to P1.022 billion mainly on account of higher personnel cost and extensive nationwide promotional campaigns.

In all, the Company’s net income after taxes for the second quarter is at P521 million. At the end of the semester, GMA posted P1.055 billion net.

GMA Network Chairman and CEO Atty. Felipe L. Gozon said the Company remains focused in achieving the 2011 target and sustaining its nationwide ratings dominance. “I am confident that GMA will deliver even much better performances in both ratings and revenues in the second half of 2011. In the opening of the second semester this July, GMA increased revenues by over one third of the amount made last year and pulled further away in nationwide ratings versus ABS-CBN,” he said.

As GMA proceeds with its multi-million-peso project to upgrade its signal and facilities and increased promotional efforts in the regions, the Network registered better ratings performance relative to competitor ABS-CBN nationwide. This is according to the household data surveyed by Nielsen TV Audience Measurement – the broadcast industry’s most trusted ratings service provider.

The Nielsen TV Audience Measurement used by GMA is 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 major local 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 880 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.

For the second quarter of 2011, GMA maintained its lead in National Urban Television Audience Measurement (NUTAM) household audience shares as it finished the period with 32.4 points versus ABS-CBN’s 32.3 – a strong performance given that for the same period in 2010, ABS-CBN was ahead of GMA by double digits. TV5, meanwhile, was locked in third place for the said period with only 15.2 share points.

In Urban Luzon, which makes up 77 percent of total television households nationwide, GMA was ahead by 8.4 household share points with 36 points versus ABS-CBN’s 27.6 during the April to June period; while TV5 was 19.4 points away from GMA as it managed only 16.6 points – still not enough to match GMA’s performance even if the figure is doubled.

In viewer-rich Mega Manila, which makes up 58 percent of total television households nationwide, GMA comfortably sat in the number one ranking with a 10.5-point gap in household shares with 36.8 points versus ABS-CBN’s 26.3 points. TV5 scored only 17.4 points.

Nielsen translates one rating point in NUTAM to 90,890 households and 421,530 viewers. In Urban Luzon, one rating point equals 69,700 households and 320,350 individuals; while in Mega Manila, one rating point is equivalent to 52,470 households and 239,070 individuals.

For partial July (July 1 to 28; July 24 to 28 based on overnight data), GMA further stretched its nationwide lead over ABS-CBN to 2.9 points with 34.4 household share points as against 31.5 points; and to 19 points versus TV5’s 15.4 points. Based on an estimated five viewers per household, the gaps translate to almost 500,000 more viewers from all over the country who favored GMA over ABS-CBN; and 3.5 million viewers who watched GMA instead of TV5.

In Urban Luzon, GMA scored 38.2 household share points, 11.5 points higher compared to ABS-CBN’s 26.7 points; and 21.6 points ahead of TV5’s 16.6. The lead means 1.6 million more viewers in the area preferred GMA over ABS-CBN; and 3.1 million more viewers favored GMA over TV5.

In Mega Manila, GMA had 1.5 million more viewers over ABS-CBN; and 2.4 million more viewers over TV5. GMA was ahead by 13.3 points in this bailiwick with 38.8 household share points versus ABS-CBN’s 25.5 points; and 21.5 points away from TV5’s 17.3 points.

On the Internet, GMA News Online leads in disseminating news content through URL and social networking sites Facebook and Twitter. GMA Network also recently launched the “Think Before You Click” campaign, urging Filipinos to be more responsible and to be mindful of what they post as they use the Internet. (GMA 7 Press Release)