{"id":333195,"date":"2025-07-17T00:54:16","date_gmt":"2025-07-16T16:54:16","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333195"},"modified":"2025-07-17T00:54:20","modified_gmt":"2025-07-16T16:54:20","slug":"stock-in-focus-gma-network-inc-gma7-17-july-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-gma-network-inc-gma7-17-july-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: GMA Network Inc. (GMA7) – 17 July 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GMA7<\/td><\/tr>
Company Name<\/strong><\/td>GMA Network Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 7.26<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We retain our BUY rating with a P7.26 target price, supported by strong earnings momentum in 2025, solid dividend yield, attractive valuation, and gradual progress on digital expansion. GMA7 offers investors a mix of income stability and potential upside in a shifting media landscape.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

GMA Network, Inc. (GMA7) maintains a strong position in the Philippine media sector, benefiting from its dominant free-to-air presence following ABS-CBN\u2019s exit. As of 2024, it held an estimated 93% audience share, enabling it to capture a large portion of political and commercial ad spend. This was reflected in its Q1 2025 results, with net income rising sharply on the back of election-related placements and tight cost control.<\/p>\n\n\n\n

GMA7 posted a strong start to 2025, capitalizing on the midterm election cycle and resilient advertiser demand. Revenues surged +28% y\/y to P4.68 illiobn in the first quarter, driven by a +29% y\/y jump in advertising sales to P4.34 billion. Election-related advocacy placements dominated airtime across TV and radio platforms, but regular ad placements also grew modestly, signaling renewed momentum in commercial demand. Consumer sales \u2013 including international subscriptions, licensing, and box-office receipts \u2013 increased +18% y\/y to P346 million, aided by the strong performance of GMA7 Films\u2019 Green Bones and expanded international bundling with ABS-CBN\u2019s iWantTFC.<\/p>\n\n\n\n

The company is also actively adapting to shifting media consumption trends. In 1Q 2025, online advertising revenue rose +32% year-on-year (y\/y), powered by its YouTube and Facebook properties. GMA7\u2019s YouTube channel now boasts over 38 million subscribers, making it one of the most followed globally for a broadcast network. Tubular Labs ranked GMA7 18th worldwide in digital video engagement. The network is also exploring proprietary streaming through \u201cKapuso Stream\u201d and deepening its presence via licensing deals with Netflix and other global platforms. <\/p>\n\n\n\n

These efforts aim to bridge the monetization gap between traditional and digital audiences, though per-user revenue remains lower online than on linear TV. The company continues to refresh its program lineup to counter ratings attrition and maintain advertising relevance across formats.<\/p>\n\n\n\n

While risks remain\u2014such as its heavy reliance on advertising, exposure to election cycles, and potential regulatory changes\u2014GMA7\u2019s healthy margins, low leverage, and consistent cash flows provide flexibility. Collaborations with ABS-CBN and others show a strategic approach to content and audience retention.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>