GMA Network’s first-quarter net income collapsed by 87 percent, a downturn the media giant attributes to a sharp decline in political advertising following the conclusion of the previous year’s election cycle.
According to its latest financial statement, the company’s net income plummeted to ₱102.2 million in the first quarter of 2026, down from ₱800.8 million during the same period last year.
Overall revenues dropped 28 percent to ₱3.36 billion, driven primarily by a 31 percent slide in advertising revenues, which fell to ₱2.98 billion.
Management pointed directly to the political transition as the primary catalyst for the financial squeeze.
“absence of a significant amount of election-related placements.”
The steep decline highlights a deeper structural challenge for the broadcaster. While the 2025 election cycle provided a financial lift, the windfall was notably modest for a network holding an undisputed monopoly on free-to-air television dominance since the 2020 shutdown of its main rival, ABS-CBN.
In 2025, GMA’s annual revenue grew to ₱19.63 billion from ₱17.57 billion in 2024, while net income improved to ₱4.18 billion from ₱3.37 billion.
Despite maintaining a commanding audience share in 2025—capturing 47.5 percent in Mega Manila, 46.1 percent in Urban Luzon, and 44.4 percent in Urban Philippines—the Q1 2026 performance underscores a shifting media landscape where traditional TV ratings no longer guarantee massive profitability.
Advertisers are increasingly migrating budgets away from broad-reach television toward highly targeted digital platforms, including YouTube, TikTok, Facebook, and streaming services.
GMA has actively attempted to pivot by expanding its digital footprint through over-the-top (OTT) licensing, content partnerships, and short-form video production. However, the network remains weighed down by the massive overhead of its traditional infrastructure, which includes 115 television stations, 21 radio stations, and nationwide transmission facilities.
This rigid cost structure hampered the network’s agility in the first quarter. While revenues plunged by 28 percent, GMA was only able to trim operating expenses by 9 percent.
As a result, the company’s profit margin shriveled from 17 percent down to just 3 percent, proving that retaining the crown of free TV matters less when the market increasingly prioritizes digital engagement over traditional broadcast reach.