MANILA – Falling advertising revenue has hit media giants ABS-CBN Corp. and GMA Network, which have recently built stronger relationships, leading to lackluster first-half results.
In separate filings, the listed companies said revenue inflows slowed in the first half due to the lack of political ads, which have significantly bolstered their operations over the past year.
The Lopez family-run media group noted that its advertising revenue fell 9% to 2.99 billion pesos while the Gozon-run network saw its own drop 31% to 7.75 billion pesos for the period.
Due to high inflation, GMA added that “the company’s major fast-moving consumer goods customers, which rely heavily on individual purchasing power, have also reduced their advertising spend.”
With total revenue falling, ABS-CBN widened its net losses by 52.2% to 2.23 billion pesos while GMA’s net profits fell 70% to 1.19 billion pesos.
ABS-CBN spent 1.78 billion pesos in production cost for the period, about 5% less than last year with 1.87 billion pesos.
GMA, meanwhile, saw its cost of production jump 5% to 3.66 billion pesos in the first half, from 3.49 billion pesos the previous year.
“Despite the contraction in sales during the six months, operations returned to pre-pandemic levels, with costs also increasing due to new product episodes as well as the resumption of face-to-face business,” GMA said.
“As economies have begun to open up, the company has resumed hosting events and releasing films in various countries around the world,” added ABS-CBN, which has operated without a free-to-air television franchise since 2020.
In January, the media giants signed their historic co-production deal for a television series titled “Unbreak My Heart.”
The romantic drama series, starring actors Joshua Garcia, Gabbi Garcia, Richard Yap and Jodi Sta. Maria, is now streaming on GMA and streaming in 15 international territories via over-the-top video streaming service Viu.
The parties have also entered into a partnership allowing GMA’s international channels, GMA Pinoy TV, GMA Life TV and GMA News TV, as well as some of its on-demand programs, to be broadcast on ABS-CBN’s iWantTFC.
This content will be available to iWantTFC viewers in select countries and territories in Asia-Pacific, the Middle East and North America, Europe, and the South Pacific/Caribbean islands.
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