Duavit blames current programs for dip in ad revenues
GMA Network wants to put out “more responsive” content both for the broadcast and online spaces, noting current programs were not doing well and have caused a decline in advertising revenues.
In a virtual stockholders meeting on Wednesday, Gilberto Duavit Jr., president and CEO of the Gozon-led media group, said the problem was “[the] programs themselves and needless to say, the growing or significant shift of viewership from TV to digital platforms.” He also blamed “unfavorable economic causes.”
He hinted at lineup replacements without specifying what programs would be booted out.
GMA reported its household ratings dropped to 9.3 percent last year in Mega Manila from 10.1 percent. Ratings in urban Luzon also slipped to 9 percent from 9.8 percent while urban national declined to 8.8 percent from 9.6 percent.
As a result, advertising revenues slid 5 percent to P16.24 billion last year.
Duavit said they were working on having a “meaningful change or cycle in program replacement” moving forward.
“These programs are envisioned to be more responsive and, moving forward, to be more progressively so, given certain efforts that are being exerted now,” he said.
Future plans
Duavit said the company was also beefing up the film production and streaming businesses to boost income.
Asked for the future of GMA’s partnership with ABS-CBN Corp., the media executive said dialogues continue amid the current production of the latest season of Pinoy Big Brother (PBB).
“While we keep in touch, no concrete or firm agreements have been reached so far, in as far as collaborations or coproductions to follow PBB,” he said.
In the first quarter, GMA grew its net income by nearly fourfold to P801.68 million with the influx of political advertisements ahead of the May elections.
Total revenues rose by 28 percent to P4.68 billion.
The company spent nearly P2 billion in production and direct costs, up by 7 percent.
Last year, GMA and ABS-CBN released “Hello, Love, Again,” a movie top-billed by actors Kathryn Bernardo and Alden Richards. It earned over P1 billion in ticket sales, making it the highest-grossing Filipino film of all time.
