By Ashley Erika O. Jose, Reporter
LISTED media companies in the Philippines are expected to face a more difficult operating environment this year as ad revenues ease after last year’s election-driven surge and as traditional platforms continue to lose ground to digital channels, analysts said.
“It will be a challenging year coming off the 2025 election cycle, when political spending boosted their earnings,” First Grade Finance, Inc. Managing Director Astro C. del Castillo said in a Viber message on Wednesday.
He added that legacy media revenues remain under pressure as advertisers continue shifting budgets to digital platforms.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said earnings of listed media companies are likely to decline as revenues normalize after the election year. He added that companies might also scale back ad spending amid a more cautious economic backdrop.
The post-election period usually brings weaker advertising demand, Mr. Colet said, noting that companies tend to be more conservative with marketing budgets when growth expectations soften.
GMA Network, Inc. and ABS-CBN Corp. both reported weaker third-quarter results in 2025 as political advertising faded and commercial spending normalized.
For the three months ending September 2025, GMA Network’s gross revenue fell 17.23% to P3.89 billion, partly due to higher operating expenses.
Despite the weaker quarter, the broadcaster posted stronger results for the nine-month period, with attributable net income rising 46.81% to P2.07 billion. Revenue climbed 11.92% to P13.99 billion, while expenses increased at a slower pace.
Advertising remained GMA Network’s main revenue driver, rising 10.47% to P12.77 billion, while consumer sales grew to P1.22 billion from P942.24 million a year earlier.
ABS-CBN, meanwhile, widened its attributable net loss to P1.28 billion in the third quarter from P389.87 million a year earlier, even as revenues rose year on year. For the first nine months, however, the company narrowed its net loss to P2 billion as expenses declined faster than revenue.
Mr. Colet said investors might pay closer attention to ABS-CBN after its content licensing agreement with Villar-led Advanced Media Broadcasting System, Inc. (ALLTV).
Under the deal, selected Kapamilya Channel programs began airing on ALLTV’s free-to-air Channel 2 on Jan. 2.
The agreement followed the termination of ABS-CBN’s content supply deal with TV5 Network, Inc., which said the move stemmed from ABS-CBN’s failure to meet its financial obligations.
“The market may take a closer look at ABS-CBN to see whether its free-to-air Channel 2 deal with ALLTV will help improve cash flows and narrow losses,” Mr. Colet said.
Analysts said digital transformation remains key to stabilizing earnings, though execution risks remain. Mr. Del Castillo said a hybrid strategy that balances traditional broadcasting with digital distribution might help media companies sustain performance by building on their content strengths.
GMA Network has begun upgrading its broadcast operations by shifting its international channels to cloud-based distribution through a partnership with global video technology firm Synamedia Ltd. and its local distributor Telered Technologies and Services Corp.
ABS-CBN has said it expects to return to profitability within 18 months, supported by advertising and contributions from its digital, film and music businesses.
At the local bourse, shares of GMA Network rose 1.07% to P5.65, while ABS-CBN gained 4.57% to close at P4.39 each.