GMA Network Expects Higher Income This Year Vs. 2019
GMA Network Inc. is optimistic that it will surpass 2019’s net income this year despite lower revenues during the first quarter of 2020 due to the coronavirus pandemic.
“In terms of bottom line results, given a steady top line coupled with cost-cutting measures implemented by the network, we are optimistic that we can surpass 2019 net profit,” GMA chairman and chief executive Felipe Gozon told Manila Standard.
Latest financial data show that GMA recorded P16.49 billion in total revenues in 2019, up eight percent from P15.23 billion the previous year. Net income, meanwhile, was up 14 percent, from P2.32 billion in 2018 to P2.63 billion in 2019.
Gozon acknowledged the impact of COVID-19 to its business during the first quarter of 2020, but said sales have started to “pick up” recently.
“It must be noted though, that last year’s top line included non-recurring election-related inflows which might be difficult to match this year,” he told Manila Standard. “Although incremental revenues are expected from the distribution of GMA Affordabox, the company’s newest venture was launched only towards the end of the first half this year.”
Affordabox is GMA’s digital TV receiver which was launched earlier this year. It’s similar to ABS-CBN’s TVPlus, which the latter launched in 2015.
Gozon said the company is on track to exceed its sales target of 600,000 Affordabox units for the remainder of 2020.
GMA is the biggest competitor of ABS-CBN, whose congressional franchise was not renewed by the Lower House earlier this month. The Lopez-owned network was forced to shutter its free-to-air broadcast services.