Media giant GMA Network Inc. recorded a steep drop in profitability during the first six months of 2026, driven by a contraction in traditional advertising spent alongside the loss of political ad revenues from the previous year.
The broadcasting company posted a net income of ₱110.2 million for the first half of the year, marking a 94% decline from the ₱1.97 billion reported during the same period in 2025. Consolidated revenues fell 35% to ₱6.61 billion, down from ₱10.1 billion a year earlier. After posting ₱102.2 million in profit during the first quarter, the network generated approximately ₱8 million in net earnings during the April-to-June quarter.
While the 2025 financial figures were bolstered by more than ₱2 billion in election-related advertisements, company officials noted that the downturn affected core operations as well.
“Excluding the impact of this non-recurring revenue stream, the Company’s core business also experienced headwinds, with regular revenues declining by 17%, from the same period last year,” the network said.
Advertising remained the company’s primary source of revenue, accounting for 89% of total earnings. However, total advertising revenue dropped 37% to ₱5.89 billion from ₱9.31 billion in the prior year. Consumer sales and production services saw a 9% contraction, falling to ₱717 million.
Management attributed the reduction in ad spend to broader economic conditions, noting that high inflation, elevated energy costs, and persistent supply-chain issues prompted fast-moving consumer goods (FMCG) brands and government agencies to pare back advertising budgets.
The company also pointed to changing viewer habits, with consumers migrating from broadcast networks to online streaming services.
“Beyond the ongoing structural shift in consumer media consumption from traditional free-to-air channels to internet protocol based platforms, overall advertiser spending was also adversely affected by a challenging macroeconomic environment during the period,” the company said.
To offset the revenue decline, GMA cut total operating expenses by 11% to ₱6.71 billion. Production and direct costs were trimmed by 14% to ₱3.65 billion as the network streamlined programming on its main broadcast channel. General and administrative expenses were reduced by 7% to ₱3.06 billion.
Despite these cost-reduction measures, earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 71% to ₱1.10 billion from ₱3.80 billion, while net income attributable to shareholders fell 95% to ₱89.9 million.
Digital segment performance provided a slight offset, with recurring online ad revenue rising and the network’s main YouTube channel reaching over 41 million subscribers by the end of June.
International channel revenues increased by 6%, and higher over-the-top (OTT) licensing fees helped moderate losses in production services, though gains were insufficient to fully absorb the drop in core television and radio revenues.