Slide 1: Q1 2017 Investors' Briefing
Q1 2017 INVESTORS’ BRIEFING FINANCIAL AND OPERATING RESULTS 15th May 2017
Slide 2: Business Segments
BUSINESS SEGMENTS CH. 7 • FREE-TO-AIR • REGIONAL MEDIA • RADIO • INTERNATIONAL PLATFORMS • RECORDS • TALENTS • OTHERS • GMA NEW MEDIA DIGITAL • DIGIFY AND • GMANETWORK.COM INTERACTIVE - ENTERTAINMENT - NEWS ONLINE MEDIA • GMA NETWORK APP
Slide 3: GMA Delivers PHP3.6B Net Income in 2016, +72% Y.O.Y.
GMA DELIVERS PHP3.6B NET INCOME IN 2016, +72% Y.O.Y. 2016 HIGHLIGHTS • GMA delivers PHP3.6B on net income, +72% Y.O.Y. • Strong 21% growth in 2016 total revenue, +15% on recurring revenue MEDIA • Strong ROE of 35% PLATFORMS • Strong #1 in total day Nutam household audience shares for 2016 • Strong a
Slide 4: +72% on Net Income in 2016, +15% on Recurring Revenue
+72% ON NET INCOME IN 2016, +15% ON RECURRING REVENUE IN Q1 2017 CONSOLIDATED FULL-YEAR FINANCIAL RESULTS (IN MILLIONS PHP) REVENUE EBITDA NET INCOME 15% 21% 59% 46% 111% 72% 11,983 13,727 16,673 2,925 4,639 6,778 1,010 2,126 3,647 15% 11,983 13,259 13,742 3,766 3,766 1,545 842 3,768 2014 2015 2016
Slide 5: +11% on ROE in 2016, +9% in Q1 2017
+11% ON ROE IN 2016, +9% IN Q1 2017 CONSOLIDATED FULL-YEAR FINANCIAL RESULTS NET INCOME MARGIN EBITDA MARGIN ROE 7% 6% - 9% 7% - 11% 11% 9% 8% 15% 22% 22% 24% 34% 41% 41% 12% 23% 35% 43% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Q1 Q1 Q1
Slide 6: +15% on Recurring Revenue in Q1 2017
+15% ON RECURRING REVENUE IN Q1 2017 CONSOLIDATED Q1 FINANCIAL RESULTS (IN MILLIONS PHP) REVENUES EBITDA NET INCOME 5% 9% 15% 20% 86% 16% 25% 148% 17% 2,851 2,997 3,263 3,766 823 986 1,838 1,545 326 408 1,013 842 W/ POL ADS w/ POL ADS 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Q1 Q1
Slide 7: +21% on Total Revenues in 2016, +16% in Recurring Airtime Revenue
+21% ON TOTAL REVENUES IN 2016, +16% IN RECURRING AIRTIME REVENUE IN Q1 2017 CONSOLIDATED REVENUE (IN MILLIONS PHP) FULL YEAR QUARTER 1 15% 21% 11,983 13,727 16,673 2,851 3,006 3,903 3,766 2,542 2,702 6% 2,931 8% 3,390 16% 10,679 11,913 12% 13,644 15% 6710% 218% 9 639 468 1,488 309 294 331 13% 376 1
Slide 8: Managed Total Opex in 2016, +5% Opex in Q1 2017
MANAGED TOTAL OPEX IN 2016, +5% OPEX IN Q1 2017 CONSOLIDATED COSTS AND EXPENSES (IN MILLIONS PHP) 10,574 10,745 2% 11,597 8% 5,552 5,843 5% 6,545 12% 2,592 5% 5,022 4,902 2% 5,052 3% 1,499 1,093 2014 2015 2016 2017 Q1 Production Cost General and Admin Expenses
Slide 9: Availed 91% of Capex for 2016, On Track
AVAILED 91% OF CAPEX FOR 2016, ON TRACK IN Q1 2017 CAPEX AVAILMENT AND PROGRAM RIGHTS (IN MILLIONS PHP) 1,301 1,148 748 704 553 444 314 2015 2016 2017 Q1 Program Rights Acquisition Capital Expenditures Availment
Slide 10: Solid Financial Metrics for Q1 2017
SOLID FINANCIAL METRICS FOR Q1 2017 BALANCE SHEET HIGHLIGHTS (IN BILLIONS PHP) TOTAL ASSETS TOTAL LIABILITIES EQUITY 4 DIVIDENDS PAYABLE 14 14 16 17 6 5 6 6 8 9 10 8 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Q1 Q1 Q1 RATIOS 2014 2015 2016 Q1 2017 Current Ratio 1.90 2.24 2.88 1.59 D
Slide 11: Widened the Audience Share Lead of GMA in NUTAM
WIDENED THE AUDIENCE SHARE LEAD OF GMA IN NUTAM +22% AIRTIME REVENUE IN 2016, +16% RECURRING AIRTIME REVENUE IN Q1 2017 AIRTIME REVENUE TOTAL DAY NUTAM AUDIENCE SHARE (IN MILLIONS PHP) 16% 22% CHANNEL 2014 2015 2016 Q1 2017 10,679 12,381 15,131 GMA 37.4 39.7 41.0 44.1 ABS-CBN 35.1 34.9 36.2 35.5 OTH
Slide 12: GMA Leads Across All Time Blocks to Date
GMA LEADS ACROSS ALL TIME BLOCKS TO DATE MORNING BLOCK (6AM – 12NN) NOONTIME BLOCK (12NN – 3PM) 31.7 37.5 32.4 37.6 31.5 36.7 32.6 35.8 31.6 37.0 33.3 40.0 33.6 42.4 35.1 42.9 35.5 43.2 32.6 45.8 DEC12016 JAN22017 FEB32017 MAR42017 APR 52017 DEC 12016 JAN 22017 FEB32017 MAR42017 APR 52017 AFTERNOON
Slide 13: GMA Strengthened Lead in National Urban (NUTAM)
GMA STRENGTHENED LEAD IN NATIONAL URBAN (NUTAM) NUTAM Total Day People Audience Share(%) 50 43.1 45 40 35 30 36.1 25 20 15 10 5 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar April May 1- 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 6, 2017 GMA 38
Slide 14: Dominant Lead in Megatam
…DOMINANT LEAD IN MEGATAM MEGATAM Total Day People Audience Share (%) 60 55.0 50 40 30 20 24.6 10 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May 1- 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 6, 2017 GMA 45.84 42.55 44.31 42.96 42.59 43.2
Slide 15: Dominant Lead in Luzon
…DOMINANT LEAD IN LUZON LUZON Total Day People Audience Share (%) 60 50.5 50 40 30 30.2 20 10 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May 1- 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 6, 2017 GMA 43.89 40.95 42.31 41.09 40.12 40.44 40
Slide 16: GMA Programs Are Most-Watched on Weekdays
GMA PROGRAMS ARE MOST-WATCHED ON WEEKDAYS… MORNING Aud. Aud. GMA Programs Share % ABS-CBN Programs Share % MORNING UNANG HIRIT 35.20 UMAGANG KAY GANDA 27.29 GHOST FIGHTER 32.73 MAGANDANG BUHAY 22.72 VOLTES V 36.73 BLEACH 44.46 ICE FANTASY 44.22 KAPAMILYA BLOCKBUSTERS 35.11 ALIADOS 38.55 NOON TIME/AF
Slide 17: ...And Even on Weekends
…AND EVEN ON WEEKENDS Aud. Aud. GMA Programs ABS-CBN Programs Share % Share % SUNDAY MORNING S AT U R D AY PINOY MD MGA DOKTOR NG BAYAN 37.19 SALAMAT DOK 29.40 MY LITTLE PONY FRIENDSHIP IS MAGIC 50.26 SWAK NA SWAK 23.44 MAJIN BONE 55.00 ANGEL WINGS 19.51 ROWDY SUMO WRESTLER MATSUTARO 59.24 ONE PIECE
Slide 18: Credible GMA News Programs Are Most-Watched Nationwide
CREDIBLE GMA NEWS PROGRAMS ARE MOST-WATCHED NATIONWIDE WEEKDAY PRIMETIME MORNING BLOCK LATE NIGHT 50.0 50.0 50.0 40.0 41.4 38.6 40.0 40.0 40.0 30.0 36.7 30.0 34.0 30.0 27.7 20.0 20.0 20.0 10.0 10.0 10.0 0.0 0.0 0.0 2014 2015 2016 Q1 2017 2014 2015 2016 Q1 2017 2014 2015 2016 Q1 2017 UMAGANG TV PATRO
Slide 19: Strong Audience Preference of GMA's Broadcast Coverage
STRONG AUDIENCE PREFERENCE OF GMA’S BROADCAST COVERAGE MAY 9, 2016 HALALAN 2016 ELEKSYON 2016 Nationwide 28.7 57.4 Nationwide 34.4 36.3 COVERAGE AHEAD OF YOUTUBE AND FACEBOOK Urban Luzon 23.6 64.8 Urban Luzon 30.0 40.7 Mega Manila 20.7 68.0 Mega Manila 26.7 43.1 SOURCE: NIELSEN HH AUDIENCE SHARES, J
Slide 20: +13% Total Revenue for GMA's International Business
+13% TOTAL REVENUE FOR GMA’S INTERNATIONAL BUSINESS TOTAL REVENUE FOR GMAI CHANNELS GMA’S INTERNATIONAL BUSINESS VIEWERSHIP GROWTH PROGRAM SYNDICATION IN MILLIONS PHP IN MILLIONS IN MILLIONS PHP 13% 12% 30% 11% 18% 1,129 1,103 1,244 75 83 99 29% 7% 73 81 85 24% 315 13 16 16 2014 2015 2016 Q1 2017 Q1
Slide 21: GMA Partners with Key Companies
GMA PARTNERS WITH KEY COMPANIES DIGIFY NMI PARTNERS DIGIFY TOP CLIENTS TELCO PARTNERS
Slide 22: +42% Unique Browsers, +57% Page Views in Q1 2017
+42% UNIQUE BROWSERS, +57% PAGE VIEWS IN Q1 2017 UNIQUE BROWSERS PAGE VIEWS 8% 82 205 172 627 1,707 1,847 42% 57% 53 524 2014 2015 2016 2017 2014 2015 2016 2017 Q1 Q1 SOURCE: GOOGLE ANALYTICS WEB METRICS FOR GMANETWORK.COM (GMA ENTERTAINMENT & GMA NEWS) IN MILLIONS
Slide 23: +179% in Online Advertising Revenue in Q1 2017
+179% IN ONLINE ADVERTISING REVENUE IN Q1 2017 TOTAL ONLINE ADVERTISING REVENUE REVENUE FROM PARTNERSHIPS IN MILLIONS PHP 74% 54 79 138 REVENUES UP BY 700% REVENUES UP BY 57% 179% 48 REVENUES UP BY 38% 2014 2015 2016 2017 Q1 NOTE: TOTAL ONLINE REVENUE FROM PROGRAMMATIC ADVERTISING, OTHER PARTNERS AN
Slide 24: GMA Is the Only Philippine Network to Win Three Golds at the 2017 New York Festival
GMA IS THE ONLY PHILIPPINE NETWORK TO WIN THREE GOLDS AT THE 2017 NEW YORK FESTIVAL READER’S DIGEST MOST MARCH TRUSTED BRANDS “BATA SA BINTANA” GOLD WORLD MEDAL 2017 MARCH 2017 HUMAN CONCERNS Silver Anvil Award: Platinum Award: GMA Network “PASAN-PASANG PANGARAP” GMA Kapuso Foundation 2015 Annual Mo
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