INDUSTRIAL AVERAGE OF PROFITABILITY RATIO

Profitability ABS-CBN GMA Industry

Return on assets 13.29% 0.99%
Return on assets 5 Yr. Avg 2.86% 8.61% 7.74%
Return on Investment 19.74% 19.70%
Return on Investment 5 Yr. Avg 3.89% 12.35% 44.84%
Return on Equity 19.74% 19.70%
Return on Equity - 5 Yr. Avg 8.23% 11.66% 19.95%

1. Current results: GMA is currently more profitable that ABS-CBN (by all three ratios that
measures profits) while ABS-CBN earns just about the same as the average firm in the economy.
Year on year GMA Network Inc grew revenues 7.16% from 12.09bn to 12.95bn while net income
improved 3.10% from 1.62bn to 1.67bn. And Year on year abs-cbn, both dividends per share and
earnings per share excluding extraordinary items growth increased 50.00% and 26.06%,
respectively.
2. 5-year average: the 5-year average gives us a little longer term view of the two companies.
However, even on the basis, the ranking is the same GMA is more profitable than ABS-CBN.
The positive trend in dividend payments is noteworthy since very few companies in the
Broadcasting & Cable TV industry pay a dividend. Additionally when measured on a five year
annualized basis, both dividend per share and earnings per share growth ranked in-line with the
industry average relative to its peers.