GMA reports 28% profit slide, shares slump by 10%

GMA Network, Inc.’s attributable net income declined by 27.7% to PHP 5.44 billion in 2022 from PHP 7.53 billion in the previous year amid lower revenues and high expenses.

Last year, GMA’s top line dipped by 3.9% to PHP 21.56 billion from PHP 22.45 billion in 2021.

Of its revenues, PHP 19.37 billion came from advertising, PHP 774.87 million from subscriptions, PHP 624.34 million from digital, and PHP 327 million from the sale of goods. Revenues from production reached PHP 122.69 million.

Production costs reached PHP 7.28 billion in 2022, up by 24.9% from PHP 6 billion in the previous year. Cost of sales was lower by 27.7% to PHP 302.14 million from PHP 418.14 million in 2021.

The network’s gross profit in 2022 totaled PHP 13.78 billion, which showed a 14% decline from the PHP 16.04 billion booked in 2021.

Expenses for the company’s general and administrative needs were a bit higher at PHP 6.64 billion in 2022, up 8% versus PHP 6.14 billion in the previous year.

GMA, despite booking a PHP 9 million loss due to a joint venture in 2022, recorded a PHP 181.31-million other income, which is more than three times the PHP 52.49 million it booked in 2021, due to a PHP 39.93 million gain from foreign exchange.

GMA is primarily involved in the business of radio and television broadcasting. Its subsidiaries include Alta Productions Group, Inc., GMA Network Films, Inc., GMA New Media, Inc., and Citynet Network Marketing and Productions, Inc.

On Tuesday, shares in GMA slipped by PHP 1.24 or 10.39% to PHP 10.70 each. — By Justine Irish D. Tabile