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GMA Network posts 24 percent hike in H1 net income to P1.

689
billion

Broadcast industry leader GMA Network sustained its strong financial
performance for the first semester of 2010 even after the revenue
windfall from political advertisements that ended in early May. The
Company's bottomline for the covered period grew by 24 percent to
P1.689 billion from last year's P1.361 billion.

Consolidated revenues increased by 19 percent to P7.565 billion from
P6.335 billion record made during the same period in 2009. In nominal
terms, the increase of P1.230 billion in revenues for the six-month
period almost equaled the P1.274 billion improvement recorded during
the full year 2009.

All business units made positive revenue contributions for the said
period. Parent company Channel 7 booked an 18 percent jump in
revenues to P6.414 billion in the first half; Q Channel 11 recorded a 17
percent revenue hike to P251 million; while GMA International
increased revenue contributions by 11 percent to P462 million. Radio
recorded the highest revenue increase of 111 percent to P337 million.

Meanwhile, operating expenses (OPEX) amounting to P4.133 billion
also grew by 18 percent on a year-on-year basis. The hike in OPEX
was mainly driven by higher production costs of primetime and
weekend variety programs, addition of Network-produced programs
that replaced canned materials in the late afternoon grid, and the
election coverage costs.

Total assets grew by eight percent to P13.309 billion due to the P1.649
billion increase in cash driven mainly by political advertisements. Total
liabilities remained at par with previous year at P2.927 billion. The
Company continues to boast of a debt-free status by end of the second
quarter.

GMA Network chairman, president, and CEO Atty. Felipe L. Gozon said
that the Company keeps a confident posture in the broadcast industry
amidst competition and is on track of reaching, and even surpassing its
2010 bottomline targets. "Coming from a very good first semester, I
am confident that GMA can still deliver strong financial and ratings
performance in the second half," Gozon said.

The Network maintains a strong presence overseas through its
international channels, namely, GMA Pinoy TV (GPTV) and GMA Life TV
(GLTV). GMA International recently launched both channels in
Brighthouse Florida and En-Touch Texas. GLTV, meanwhile, made a
debut in Comcast Central California and Hong Kong through PCCW this
May.

GPTV is slated to roll out in Comcast Beltway Region (Washington DC
and Northern Virginia) in September, while GLTV will launch in Comcast
Houston in October. To date, both channels have penetrated more
markets in the US, Canada, Europe, Middle East, North Africa,
Australia, New Zealand, Japan, Guam, Papua New Guinea, Singapore,
Hong Kong, and many other territories.

By the end of June 2010, GPTV registered a subscriber count of
256,000, up by 18 percent from the same period in 2009. Of the said
number, 122,000 are also subscribers of GLTV, up nine percent year-
on-year. The viewer counts are estimated at 1.6 million and 965,000
for GPTV and GLTV, respectively.

On the other hand, GMA Network's distribution and acquisition
subsidiary, GMA Worldwide, Inc. (GWI), closed contracts amounting to
US$280,000 for the entire year, of which, US$151,000 worth of sales
were realized for the first six months of 2010 through syndication of
locally produced programs to neighboring countries and as far as
Africa, Alaska, the Middle East, and North America. June saw the entry
of the Network's Filipino version of Marimar into China. It will air in
Mandarin through China's national television station to over one billion
viewers.

Locally, GMA Network continues to strengthen its presence in key
provinces nationwide. During the period, GMA Engineering completed
the commissioning of TV relay station upgrades in San Jose City
(Occidental Mindoro), Dipolog (Zamboanga del Norte), Ozamiz City
(Misamis Occidental), Tacloban (Leyte), and Kalibo (Aklan). The group
continues signal and facility upgrade projects in Virac (Cantanduanes),
Ormoc City (Leyte), Tagbilaran (Bohol), Santiago City (Isabela),
Zamboanga City, Jalajala (Rizal), and Mt. Caniao, Bantay (Ilocos Sur).

Meanwhile, GMA's regional newscasts, namely, Balitang Amianan
(Dagupan), Ratsada (Iloilo), Balitang Bisdak (Cebu), and Testigo
(Davao) inked significant ratings improvement since starting a back-to-
back airing with GMA's flagship newscast 24 Oras in April. Alongside,
Regional TV's election specials - the localized version of Isang Tanong
across the four mentioned areas beat their counterpart programs from
ABS-CBN.

In terms of TV ratings, GMA Network continued to beat archrival ABS-
CBN in viewer-rich Mega Manila during the second quarter of 2010.
This is according to the more widely recognized TV ratings service
Nielsen TV Audience Measurement.

Mega Manila comprises 55 percent of total urban television households
nationwide. It includes Metro Manila and suburbs - parts of Bulacan,
Pampanga, Cavite, Laguna, and Rizal.

From April to June 2010, GMA remained the highest-rated free-to-air TV
channel in Mega Manila based on Neilsen's people data. GMA was
ahead of ABS-CBN in the said Kapuso-bailiwick area with an average
total day (6AM to 12MN) people share of 34.6, up by 0.8 percentage
point versus competition's 33.8. In people rating, GMA registered 6.3
percent, up by 0.1 percentage point over competition's 6.2 percent.

Excluding specials, 16 GMA programs formed part of the top 30
programs in Mega Manila. Of the top five programs on chart, three
were GMA-produced. These programs included The Last Prince, Diva,
and Endless Love.

During the quarter, 12 of GMA's 21 program launches beat their
counterpart programs from ABS-CBN. GMA News and Public Affairs'
(N&PA) Aha, Sunnyville, and Pinoy MD delivered notable ratings
performance during their debut, alongside GMA Entertainment TV's
(ETV) Basahang Ginto and Trudis Liit (on weekday afternoon block),
Lovebug (on weekend afternoon block), and Endless Love (on weekday
primetime).

In July, GMA Network pulled away from the tight ratings match and
once more established confident ratings margins over ABS-CBN.
People data from July 1 to 31 showed GMA leading in total day (6AM to
12MN) average audience share by 5.6 points with 37.5 percent versus
ABS' 31.9. In people rating, GMA led rival station by 1 point with 6.5
points against the latter's 5.5.

GMA N&PA, meanwhile, made a runaway ratings performance with a
series of special coverage this 2010. During the historic elections,
GMA's Eleksyon 2010 posted a 12.3 TV ratings average from May 10 to
11 based on Mega Manila household ratings, vis-à-vis ABS CBN's 10.
The May 10 average of Eleksyon 2010 was also higher at 12.6 percent,
compared to ABS' 11.1 percent.

GMA N&PA also delivered the top inauguration coverage billed, Panata
sa Pagbabago, which got a commanding 13.2 percent for people
ratings as against the 9.6 percent of ABS-CBN's Panunumpa sa Bayan.
And just recently, GMA's SONA 2010 bested ABS CBN's Boses ng Bayan
with a whopping 5.8-point lead in household ratings - with SONA 2010
earning 21.1 percent compared to the other station's 15.3 percent.
The unprecedented ratings success of its N&PA's coverage cements
GMA's unbiased, non-partisan reporting of news and events.

Nationwide, July to August 4 survey (August 1 to 4 based on overnight
data) showed GMA's programs across dayparts winning over their ABS
counterparts. National Urban Television Audience Measurement
(NUTAM) people data showed that viewers preferred Danz Showdown,
Trudis Liit, Basahang Ginto, Hole in the Wall, Queen Seon Deok, and
Mel and Joey over opposite programs in ABS' grid.

Television's longest-running noontime show, Eat Bulaga (EB), also
bested the newly launched Pilipinas, Win na Win (PWNW) of ABSCBN in
NUTAM from August 2 to 9 (based on overnight data). EB went ahead
of PWNW by 0.8 household rating point, and by 0.9 people rating point
nationwide.

In Urban Luzon, where 77 percent of TV households nationwide are
found, GMA's Danz Showdown, Trudis Liit, Basahang Ginto, Hole in the
Wall, Diva, Queen Seon Deok, Bubble Gang, Kapuso Mo, Jessica Soho,
Imbestigador, 24 Oras Weekend, Mel and Joey, Pepito Manaloto, and
Kap's Amazing Stories were also ratings winners in a pit against ABS'
programs during the covered period.

Nielsen translates one rating point to approximately 390,620 viewers
in NUTAM; 299,630 in Urban Luzon; and 214,620 in Mega Manila.

In the coming months, GMA will roll out more exciting programs
namely, Asar Talo, East of Eden, Survivor Philippines Celebrity
Showdown, and a whole lot more.

Meanwhile, GMA Films, in a co-production with Viva Films, will premiere
In Your Eyes starring Claudine Barretto, Anne Curtis, and Richard
Gutierrez at the theaters this August 18. (30)