BROADCAST giant GMA Network Inc. reported a net income of P1 billion for 2014, lower than the P1.67 billion it recorded in 2013, due to the absence of political advertisements last year.
The company said consolidated revenues also dropped 8 percent to P11.9 billion.
Despite the decline in net income, the company declared cash dividends totaling P1.215 billion as it looks forward to better financial results for 2015.
In a statement, GMA said its Board of Directors, in a special meeting held on Monday, approved the declaration of cash dividends at P0.25 centavos per share, payable on May 19, 2015 to shareholders on record as of April 24, 2015.
The dividends represent a payout ratio of 120 percent in relation to the company’s 2014 net income. Since its IPO in 2007, GMA has returned a total of P15.456 billion to its shareholders.
GMA chairman and chief executive officer Felipe Gozon said, “2014 was both challenging and rewarding.”
“Our efforts to efficiently manage our costs resulted in flat operating expenses of P10.569 billion with a 7 percent reduction in our production cost without compromising the quality of our programs,” he added.
GMA said it sustained its lead in viewer-rich Urban Luzon and Mega Manila for the full year of 2014.
Based on data from service provider Nielsen TV Audience Measurement, GMA cemented its total day household shares supremacy in the two areas, while leading across all dayparts including the highly contested primetime slot.
2014 was also a banner year for DZBB, GMA’s flagship AM station, as it became number one in Mega Manila in the second quarter due to stronger news and public affairs programming.
According to Gozon he is optimistic for 2015 owing to marked improvements already seen at the onset of the year.
“If the first three months are any indication, it reinforces our view that it will be a much better year for the company. Likewise, we see exciting times ahead for our viewers as we launch new, game-changing programs in the coming months,” Gozon said.
GMA continues to gain ground worldwide as the network’s international business unit generated revenues of P1.07 billion, following the increase in subscriber count of GMA Pinoy TV, GMA Life TV and GMA News TV International by 4 percent, 8 percent and 59 percent, respectively.
Meanwhile, audiences in Vietnam, Cambodia, Malaysia, and Nigeria, to name a few, continue to enjoy popular Kapuso programs as GMA Worldwide, the global content distribution and acquisition arm of the Network, sold an aggregate 2,052 hours of locally-produced programs and movies.
GMA New Media Inc. (NMI) significantly increased its online advertising revenues by 79 percent from 2013, boosted by the sustained growth in page views and unique browsers for both GMA News Online and the GMA Network Portal, GMA’s official entertainment website.
The increase is also attributed to the strategic and aggressive use of social media, and to enhancements that have made the websites more intuitive, relevant and reader-friendly.
The network also won its fourth George Foster Peabody Award for its special coverage of Typhoon Yolanda (Haiyan) in 2014, adding to its string of notable achievements. GMA remains to be the only news and public affairs organization in the country to have received this most coveted award for broadcast excellence.