Broadcast giant GMA Network saw its earnings rise by 4% to P1.4 billion in the 1st half of the year, as it spent less amid the coronavirus pandemic.

GMA’s operating expenses dropped by 21% from P6 billion to P4.7 billion in the January-June period, as the network stopped most of its television production. General and administrative expenses, including talent fees as well as rentals and outside services, also ended lower during the period.

Only its news and select public affairs programs continued to air fresh episodes, while its entertainment arm relied on reruns of canned series.

Advertising revenues, which comprised most of its top line, fell by 15% from P7.3 billion to P6.1 billion during the 1st half, due to the absence of political ads this year and the coronavirus pandemic. The pandemic has forced companies to conserve cash and slash advertising costs.

While its rival ABS-CBN was forced to go off-air in the 2nd quarter, GMA noted that the shift in advertising placements provided only “some incremental revenues.” (READ: Fewer viewers, ad options: How ABS-CBN shutdown alters PH media landscape)

Subscription revenues from GMA’s international operations fell 7% to P605 million. The network said alternative media, particularly in the digital platform, was a “major factor” for the shift in subscriber preference. 

Meanwhile, sales of its digital receiver device, the Affordabox, have reached around 100,000 units since its launch in late June.

Despite the revenue slump, GMA said it “remained relatively resilient.”

Online advertisements were a bright spot, growing 23% on the back of programmatic buys.

As of end-June, GMA’s total assets had grown 10% to P17.9 billion.

ABS-CBN struggles to report

Meanwhile, embattled ABS-CBN told the Philippine Stock Exchange that it cannot disclose its financials just yet, as it takes into consideration the non-renewal of its congressional franchise.

ABS-CBN has yet to report its full-year 2019 performance, as well as its 1st and 2nd quarter earnings for 2020.

“Our independent auditors extended their audit due to said subsequent event (the denial of legislative franchise) and required more supporting documents,” ABS-CBN said. – Rappler.com