GMA Network is studying the possibility of offering a subscription video-on-demand service. — BW FILE PHOTO
GMA Network, Inc. anticipates a 15% increase in its earnings this year, betting that vaccine rollouts across the country will further ease restrictions.
“With the reduction in the rate of infections and with the increase in vaccination towards herd immunity, on the optimistic side, I think we can project, hopefully, a 15% increase in 2021 over 2020,” GMA Network Chairman and Chief Executive Officer Felipe L. Gozon said at the company’s annual stockholders’ meeting on Wednesday.
“We’ve been confident that we might still increase our gross revenues and net income for 2021. Why do I say that? Even as we speak now, there are indications that the effects of the pandemic are easing up. As a consequence, the government is also easing up all the restrictions,” he explained.
He also pointed out that it is important for the government to revive the economy because the country has been “in a negative growth.”
“So many people are unemployed and many businesses have closed down,” Mr. Gozon said.
GMA Network saw its attributable net income in 2020 more than double to P5.98 billion from P2.62 billion in the previous year.
The company’s attributable net income jumped more than three times to P2 billion in the first quarter of 2021 from P583.41 million in the same period in 2020.
Its total revenues surged 54.7% to P5.46 billion from P3.53 billion previously.
Advertising revenue increased 56.6% to P5.09 billion in the first quarter from P3.25 billion in the same period a year ago.
The company is studying the possibility of offering subscription video-on-demand service like Netflix.
“We are studying everything. If it will bring us revenues or net income, definitely we will go into that… We are still studying it,” Mr. Gozon said.
GMA Network shares closed 1.65% lower at P8.94 apiece on Wednesday. — Arjay L. Balinbin