Gozon, Duavit, Jimenez swimming in cash! GMA profits jump more than triples in Q1 due to TV, radio advertising boom | Bilyonaryo Business News

Gozon, Duavit, Jimenez swimming in cash! GMA profits jump more than triples in Q1 due to TV, radio advertising boom

Its raining money at the GMA Broadcast Center of bilyonaryos Felipe L. Gozon, Gilberto Duavit, Jr., and Joel Marcelo Jimenez.

GMA Network raked in P2.018 billion profits in the first three months this year, up by 246 percent from P583.42 million as it continued to dominate the market following the fall of former media giant ABS-CBN free TV channels and radio stations.

GMA was flooded with P5.095 billion in advertising revenues from January to March this year, up by 57 percent from P3.254 billion a year ago

Its free TV channel, GMA-7, saw a 57 percent spike in ad sales while ads from radio soared (DZBB rocketed 90 percent and provincial stations soared 29 percent).

Its second free TV channel, GMA News TV (rebranded to Good TV or GTV) climbed 244 percent while its regional TV stations increased by 150 percent. GMA is also getting a windfall from online revenues which grew 41 percent in the first three months this year.

The only blot on GMA’s impressive first quarter results is the 23 percent drop in subscription revenues from its international cable channels.

GMA also boosted its digital presence with the sale of 1.2 million units of GMA Affordabox worth P147 million since it was launched on 26 June 2020 or two weeks before Congress rejected the Lopezes application for a new franchise of ABS-CBN (its old franchise expired in May 2020).

GMA is squeezing more profits from every peso it earns with production costs dropping 10 percent to P1.1 billion due to lower talent fees (down 10 percent to P570 million) and rentals (down 42 percent to P84 million). “While efforts were made to produce new entertainment programs including taping in a bubble setup, these were still limited to several programs due to the continued challenges faced during this pandemic. As such, a mixed of replays, recaps and fresh airings occupied the entertainment grid of GMA,” the company said.

GMA also said it benefited substantially from the reduction in corporate income taxes from 30 percent to 25 percent under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which took effect last March.

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