The Gozon, Duavit and Jimenez family-controlled broadcaster lost P77.37 million from July to September 2026, reversing a P102-million profit a year earlier, as quarterly revenues fell 21 percent to P3.06 billion.
The loss wiped out much of GMA's first-half earnings, leaving just P33 million in nine-month profit, down 98 percent from P2.07 billion a year earlier, as the absence of election advertising compounded weaker regular commercial spending.
Advertisers tighten spending
The downturn comes as Philippine economic growth slowed to just 2.1 percent in the third quarter, with weak consumer demand and rising business costs prompting companies to become more selective about advertising.
GMA's nine-month advertising revenues fell 33 percent to P8.64 billion, accounting for nearly P4.18 billion of the company's P4.32-billion decline in total revenues.
Some consumer goods companies temporarily suspended advertising for selected products as higher production costs and supply disruptions affected their operations, while government agencies also reduced spending.
GMA retained its lead in television audience ratings, according to Nielsen data cited by the company, but that advantage has not shielded its traditional broadcasting business from the continued shift toward digital platforms.
Cost cuts offers some relief
GMA reduced operating expenses by 13 percent to P9.93 billion during the nine months, including cuts in production and talent costs, but revenues fell much faster at 31 percent.
The pressure carried into the third quarter, when expenses of P3.22 billion exceeded revenues of P3.06 billion, despite spending falling from P3.82 billion a year earlier.
Its operating earnings before interest, taxes, depreciation and amortization (EBITDA) plunged 68 percent to P1.47 billion, while its net profit margin narrowed to just 0.3 percent from 15 percent.
Cash flow feels the pressure
Cash generated from operations fell to P1.64 billion from P4.34 billion a year earlier, while cash reserves stood at P1.39 billion as of September.
GMA also paid P1.96 billion in dividends during the period, exceeding its nine-month profit, while pension obligations climbed to P6.4 billion.
—Edited by Miguel R. Camus
