Rivals GMA Networks and ABS-CBN Corp. have reported contrasting nine-month financial results, with the former outlining a 6% dip in income while the latter posting a 22% hike.
Despite revenues improving by 4% to P9.75 billion, GMA’s net income in the last nine months ending September dropped to P1.49 billion. Th network’s airtime revenues during the period was also up 5%,
Higher operating expenses up 7% to P7.6 billion were suspected to eat away on the network’s earnings. GMA execs fear that it could push the company off course from a projected 10% profit hike this year.
GMA’s third quarter revealed massive losses, supporting speculations of a flat 2013. For the previous quarter, airtime revenues dropped 14%, pulling total revenues down 11% to P2.69 net income down 38% to P353 million.
In contrast, ABS-CBN managed to bring its consolidated nine-month net income up 22% compared to last year to P1.89 billion due to robust advertising revenues and election-related spending.
The company’s advertising revenues for the period is P14.77 billion, a 20% improvement year-on-year while consumer sales surged 11% to P10.45 billion. Interestingly, ABS-CBN managed to stay in the green despite its total costs and expenses were up by 15%, amounting to P22.75 billion.