GMA gains from ABS-CBN closure, profit more than doubles to P5.98B | Bilyonaryo Business News

GMA gains from ABS-CBN closure, profit more than doubles to P5.98B

GMA Network Inc. started to reap the benefit of rival ABS-CBN Corp.’s closure as net earnings surged 129% to P5.98 billion due to a shift in ad placements and a decline in production costs.

RELATED STORY: Sana all! Duavit, Gozon, Jimenez reward GMA top execs, directors with up to 40% hike in compensation in 2020, including P572M in bonuses

Consolidated revenues jumped 17% to P19.33 billion with ads accounting for 92 percent or P17.73 billion of the total.

Airtime revenues from TV and radio broadcast operations as well as online advertising sales largely comprised this segment. Sale of services made up the second largest revenue source reaching P1.02 billion.

Total operating expenses fell 16% to P10.78 billion as production costs fell 46% to P3.45 billion due to lockdown measures implemented by the government to contain the spread of Covid-19.

While quarantine restrictions were relaxed starting in the third quarter, the company still couldn’t go full blast on producing shows and had to air replays of high-rating programs most of the year.

Given this, talent fees went down 42% to P1.7 billion.

Rental of facilities and production equipment likewise contracted by 74% to P210.24 million.

Program rights amortization likewise slipped 29% to P703.42 million.

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