- ABS-CBN shows positive income statement for Q1 2018, while GMA shows poor numbers
- ABS-CBN decreased expenses that caused the rise in revenue
- GMA’s Q1 operating expense increased by 4 percent and did not sit well with the declining revenue
ABS-CBN and GMA Network have been in an open rivalry since the beginning of time. The two networks submit a quarterly report to Philippine Stocks Exchange (PSE) to update stock prices.
There is now a comparison between the networks not only in shows and TV programs but also on how the company manages its operations to result in a positive income statement.
Based on Q1 2018 disclosure to PSE, ABS-CBN recorded a 30.9 percent increase in net income from 314 million last year to 411 million this year. However, consolidated revenues declined by 5.9 percent, from 9.57 billion to 9.01 billion, due to lower advertising and retail sales.
The positive net profit, even though with the declining revenue, is due to less expenditure. Expenses dropped at 4.3 percent from 9.17 billion to 8.73 billion due to the decrease of facilities-related and employee-related costs.
GMA network, on the other hand, was experiencing a “challenging market conditions” and “the contraction in TV spending of major advertisers” in Q1 2018.
The network’s consolidated revenue dropped by 13 percent from 3.76 billion to 3.27 billion. The reason for this drop, according to the report, can be charged to the airtime sales which made up 88 percent of total revenues.
Also contributed to this turnabout is the rise of operating expenses by 4 percent from 2.592 billion to 2.707 billion.
GMA Network was able to recover in its international operations such as subsidiaries and digital business that allowed a 7 percent increase from 377 million to 403 million.
