GMA Network Reported P1.41 Billion Net Income in 9M24

According to a PSE disclosure, GMA Network and Subsidiaries (GMA7) reported consolidated revenues of P12,464 million after nine months in 2024, which is 9% less than the P13,766 million top line of the previous year.

​On a per quarter basis, 3rd quarter results posted considerable improvements over the past two quarters this year. Consolidated revenues in 3Q sealed at P4,687 million, equivalent to a double-digit percentage growth of 14% versus the sales generated during the 2nd quarter. Growth in airtime advertising provided the impetus in between periods. However, compared to the same quarter last year, the Company’s top line declined by 12%, largely due to weaker advertising revenues across the industry.

Advertising revenues continued to be the primary driver for the company, accounting for over 90% of total revenue.
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Meanwhile, the company's consolidated direct costs and operating expenses (OPEX) for the first nine months reached P10,676 million, inching up by less than a percentage point or by P79 million more than the previous year. The growth in account primarily came from the 5% increase in General and administrative expenses, which was nearly evened out by the 2% reduction in Production and other direct costs.

As a result of the dearth in the top line, consolidated Earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of September this year amounted to P3,706 million, down from P4,879 million in the same period last year. Similarly, the company's consolidated Net income after tax stood at P1,405 million, compared to P2,466 million in the corresponding period last year.

Revenues

Mixed results across the different revenue-generating businesses of the Company were recorded by the end of the nine-month period this year. Consolidated advertising revenues, which comprised 92% of the total revenue pie, saw a decline of 9% or P1,160 million, providing the main drag to the overall revenue contraction in between years

Expenses
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The Company’s consolidated operating costs, including cost of sales summed up to P10,675 million after nine months this year, not even a percentage point more than a year ago. Direct production costs declined by 2%, or P132 million, while general and administrative expenses increased by 5% or P211 million. On the other hand, cost of sales decreased by 44%, parallel to a lower volume of merchandise sold during this period compared to the first nine months of the previous year.

EBITDA

With revenues declining in between periods, the Company’s consolidated Earnings before interest, taxes, depreciation and amortization (EBITDA) sealed first three quarters results at P3,706 million, short of last year’s P4,879 million EBITDA by P1,172 million or 24%.
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Net Income

Consolidated Net Income After Tax concluded at P1,405 million against P2,466 million during comparable period last year.

Balance Sheet Accounts

As of the end of September 2024, the Group's total consolidated assets stood at P27,269 million, higher than the P26,255 million reported on December 31, 2023. This increase was mainly driven by the rise in Cash and cash equivalents by P871 million due to higher cash proceeds from operating activities partially offset by some financing (dividends and loans payments) and investing (acquisitions of fixed assets). Program and other rights inventory also grew from P2,219 million in end-2013 to P2,340 million by the end of third quarter this year, resulting from higher acquisitions made against rights amortization during the first nine months of the year. However, these increases were partially offset by a P149 million decrease in Merchandise inventories, following continuous sales of GMA Affordabox during the reporting period. Meanwhile, total consolidated liabilities climbed by 22%, or P2,532 million, reaching P13,849 million by the end of September 2024, compared to P11,317 million at the end of December 2023. This increase was primarily driven by a P2.5-billion increase in Short-term loans, bringing the total to P4,024 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.
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Equity attributable to Parent Company stockholders decreased to P13,369 million as of September 30, 2024, representing a 10% decline or P1,513 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 three quarters of the year.