GMA Network, Inc. Reported P7,777 Million in Consolidated Revenues in H1-2024

GMA Network and Subsidiaries (GMA) sealed the first six months of the year with consolidated revenues of P7,777 million, lower by a single-digit 8% against last year’s top line of P8,460 million.

On a per quarter basis, the 2nd quarter of this year showed better results than the opening quarter of 2024. Consolidated revenues in 2Q posted an improvement of P463 million or 13% to P4,120 million from the P3,657 million recorded during the opening quarter this year. Consolidated airtime sales propelled the increase in 2Q, up P309 million or 10%. However, compared to the same quarter last year’s consolidated sales of P4,444 million, the Company recorded a reduction of P324 million or 7%. Airtime sales was likewise the hardest hit with the cutback versus Q2 2023.

Source: PSE Edge

Advertising revenues continued to be the primary driver for the Company, accounting for over 90% of total revenue. 

Meanwhile, the Company's consolidated direct costs and operating expenses (OPEX) for the first six months reached P7,084 million, slightly higher by 2%, or P140 million more than the previous year. Both production and other direct costs, as well as general and administrative expenses, grew compared to the first half of 2023, though this was partially offset by a decrease in the cost of goods sold between periods. 

As a result, consolidated Earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of June this year amounted to P1,991 million, down from P2,558 million in the same period last year. Similarly, the Company's consolidated Net income after tax stood at P=602 million, compared to P1,183 million in the corresponding period last year.

Revenues

​Six months into the year, the Company reported mixed results, with a consolidated top line of P7,777 million. Advertising revenues fell short by P=606 million compared to the same period last year, and sales of goods also saw a decline of P78 million. These decreases were only slightly offset by a modest improvement in service sales, which increased by less than a million pesos between periods.

Source: PSE Edge

On a per platform basis, core channel GMA 7 remained the biggest contributor to the Network’s consolidated top line during the first semester. However, the channel missed last year’s sales performance by some 7%.

The Company’s second free-to-air channel, Good TV or GTV, continued to be a strong contender in the topthree spot in terms of ratings, vis-à-vis other channels. GTV has likewise shown its financial viability as a stand-alone channel. Revenue-wise, this year saw GTV also experiencing a slowdown in its top line, but nonetheless remaining profitable on a per segment basis. 

EBITDA

With revenues declining in between periods, the Company’s consolidated Earnings before interest, taxes, depreciation and amortization (EBITDA) sealed first semester results at P1,991 million, short of last year’s P2,558 million EBITDA by P567 million or 22%.

Net Income

Consolidated Net Income After Tax concluded at P602 million compared to P1,183 million during comparable period last year.

Balance Sheet Accounts

As of the end of June 2024, the Group's total consolidated assets stood at P26,379 million, slightly higher than the P26,255 million reported on December 31, 2023. This modest increase was mainly driven by a P240 million rise in Program and other rights inventory, resulting from acquisitions made during the first six months of the year. Cash and cash equivalents also grew by P217 million, or 16% to P1,592 million compared to the end of 2023. However, these increases were partially offset by a P253 million decrease in Trade and other receivables, due to lower revenue generated during the first half of 2024. Additionally, Merchandise and supplies inventory declined by P113 million, attributed to continuous sales of GMA Affordabox.

Meanwhile, total consolidated liabilities rose by 22%, or P2,444 million, reaching P13,761 million by the end of June 2024, compared to P11,317 million at the end of December 2023. This increase was primarily driven by a P1,997 million rise in Short-term loans, bringing the total to P3,524 million. Furthermore, Obligations for program and other rights, along with Pension liabilities, also increased during the reporting period due to the aforementioned acquisitions and higher retirement expenses relative to contributions to the fund. 

​Equity attributable to Parent Company stockholders decreased to P12,565 million as of June 30, 2024, representing a 16% decline or P2,316 million, compared to December 31, 2023. This reduction was primarily due to a decrease in retained earnings following the declaration of cash dividends in the second quarter of 2024, partially offset by net income after tax for the first two quarters of the year.