GMA New Media Inc. (NMI), the technology arm of broadcast giant GMA Network, said its consolidated profit in the first 11 months of the year grew 327 percent from a year earlier, boosted by content partnerships.
In a statement, GMA’s wholly owned subsidiary said its consolidated profit increased to P37.4 million in the January to November period, 327 percent higher than that of the previous year and following a 621 percent profit growth for full-year 2015.
Consolidated revenues grew 50 percent to P249.6 million in the 11-month period, underpinned by NMI’s growth initiatives which included the optimization of revenue sources, among them content partnerships that were established last year and cultivating emerging ones to sustain the uptrend in sales.
Online advertising revenues jumped 73 percent to P124 million as earnings from programmatic advertising and key online partners contributed 80 percent of total sales equivalent to P99.3 million.
Revenues from YouTube increased 94 percent to $700,000 driven by the GMA YouTube channel’s steady increase in the number of views and traffic. On the other hand, year-to-date revenues from over-the-top platforms from the two main partners — Hooq and iflix — also increased by 218 percent compared to the same period last year.
“Partnering with various industry entities such as online industry leaders Facebook and YouTube has proven to be an effective strategy for GMA NMI this year. These partnerships, in addition to opening new revenue streams, are beneficial in terms of strengthening GMA’s online presence particularly among the millennial market,” said GMA NMI President and COO Judd Gallares.
NMI subsidiary MediaMerge also posted strong financial results as it increased its net income by 101 percent during the covered period. Digify, another subsidiary, continued to grow its pool of clients fuelled by the continued demand for internet-based applications.
This year, the techno-creative R&D lab bagged several recognitions with the most recent one being a Gold award for Marketing Excellence, Emerging Technology, for powering SM Supermall’s “Download and Win” mobile app in the International Council of Shopping Centers.
NMI is the prime mover of the upcoming launch of GMA’s DTT (digital terrestrial television) product in the country. NMI recently unveiled a prototype of GMA’s DTT product, which can enable digital broadcast services on analog TV while transforming the unit into a smart TV capable of playing on-demand content and running different applications, allowing for an interactive viewing experience for the consumer.
The Intellectual Property Office already issued a Certificate of Registration for the Utility Model application of the said innovation.
The Network earlier announced that it is initially investing P416 million on transmitter facilities for its DTT project to kick-start its rollout in Mega Manila. The amount will be allotted for the acquisition of three high-powered transmitters and a fully mirrored head-end system for grouping and digitally encoding programs.