GMA Network Inc. said net income grew by 4 percent in the first half of the year partly because of the absence of political advocacies and the COVID-19 pandemic.

The Gozon-led broadcasting network said net income amounted to P1.40 billion in the first half of the year from P1.35 billion in the same period last year. 

Consolidated advertising revenues (airtime, online, international) which comprised 91 percent of the company’s revenue pie, wrapped up at P6,.14 billion in the first half, a net reduction of 15 percent versus year ago’s P7.26 billion.

“Biggest drag came from the absence of political advocacies and advertisements this year, aggravated by the onset of the COVID-19 pandemic/ lockdown which disrupted the business landscape across countries,” the company said. 

“Consequently, all airtime-revenue generating platforms yielded to prior year’s top-line results faced with the above-mentioned double-dilemma. Without the windfall from last year’s elections, recurring advertising sales still ended lower than a year ago, albeit narrowing the gap to only 5 percent shy of last year,” it added.  

Meanwhile, GMA said this was partly cushioned by the improvement in online advertising sales, which grew by 23 percent during the first half of 2020. 

On other revenues, subscriptions and sales from other sources and subsidiaries finished less than last year’s tally by 7 percent, from revenues of P606 million compared with P653 million last year. 

GMA said  revenues began to pick up some more compared to previous months when the impact of the Enhanced Community Quarantine (ECQ) was first felt. 

“Apart from this, the shift in advertising placements resulting from the closure of the company’s biggest and closest competitor (ABS-CBN) due to the expiration of its free-to-air broadcast franchise in early May, provided some incremental revenues,” it added

Total consolidated operating expenses sealed the first semester amounted to P4.73 billion, dropping by  21 percent  compared to last year’s P6.01 billion.

Production cost, talent fees and other direct costs amounted to P1.90 billion in the first half, down 40 percent from P3.17 billion last year.