GMA Network Q1 profit plunges 46 pct

Posted at 05/05/2014 5:46 PM | Updated as of 05/05/2014 11:18 PM

MANILA, Philippines – GMA Network Inc. saw a 46 percent drop in its net income in the first quarter of the year compared to the same period in 2013 due to the lack of gains from election-related advertisements.

The network said its net income in the first three months of 2014 dropped to P325 million from P601 million last year.

Consolidated revenues of P2.85 billion in the first quarter of 2014 were also down 12 percent from the P3.24 billion in the same period last year.

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) were down 31 percent to P823 million.

Despite the drop in numbers, GMA officials remain optimistic in reaching its targets for the year.

“We expect better numbers in the next few months as our top advertisers have already committed their placements,” GMA chairman and chief executive Felipe Gozon said in a statement.

The network said GMA International and GMA News TV posted positive results while its local regional sales proved to be an emerging revenue source.

GMA will pay out cash dividends to its shareholders worth P1.312 billion at 27 centavos per share on May 19.

On Monday, businessman Ramon S. Ang confirmed he is in talks with Gozon for a possible stake in the broadcasting company.