May 2016 Kapuso Magazine by GMA New Media

The Most Preferred Election Coverage www.gmanews.tv/eleksyon2016

RATINGS

May 2016

Contents

GMA Network Retains Ratings Supremacy in Urban Luzon and Mega Manila

2 3 4

ahead of ABS-CBN’s 30.8 percent by 9.3 points and TV5’s 7.9 percent by 32.2 points.

GMA also maintained its winning streak in Mega Manila with 41.9 percent, up by 14 points from ABS-CBN’s 27.9 percent and up by 33.5 points from TV5’s 8.4 percent. Urban Luzon accounts for 77 percent of all urban TV households in the country, while Mega Manila covers 60 percent.

MA Network remained the ratings frontrunner in its stronghold areas of Urban Luzon and Mega Manila, based on data from Nielsen TV Audience Measurement. For the period April 1 to 30 (with April 24 to 30 based on overnight data), GMA beat other TV networks in Urban Luzon with an average household share of 40.1 percent,

MEGA MANILA

In National Urban Television Audience Measurement (NUTAM), GMA continued to lead rival networks in the daytime blocks. GMA recorded 32.7 percent in the morning block versus ABS-CBN’s 30.7 percent and TV5’s 12.6 percent. In the afternoon block, GMA posted 38.5 percent, outscoring ABS-CBN’s 34.4 percent and TV5’s 7.8 percent.

URBAN LUZON

19 GMA programs in the top 30

21 GMA programs in the top 30

13 GMA programs in the top 30

PROGRAM NAME

Pacquiao Bradley III*

Lip Sync Battle Philippines

Kapuso Mo Jessica Soho

Pepito Manaloto Ang Tunay Na Kuwento

Pepito Manaloto Ang Tunay Kuwento

Lip Sync Battle Philippines

Kapuso Mo Jessica Soho

11-12

Pepito Manaloto Ang Tunay Na Kuwento

Eat Bulaga

24 Oras

Poor Senorita

PROGRAM NAME

Pacquiao Bradley III*

Magpakailanman

That’s My Amboy

Ismol Family

Because of You

Wish I May

IMBG 20 I am Bubblegang

Sunday Pinasaya

Hanggang Makita Kang Muli

24 Oras Weekend

Karelasyon

Wowowin

Vampire Ang Daddy Ko

The Millionaire’s Wife

29-30

Imbestigador

24 Oras

Eat Bulaga

Magpakailanman

11-12

Poor Senorita That’s My Amboy

15-16 18

RANK

PROGRAM NAME

Pacquiao Bradley III*

13-14

24 Oras

Magpakailanman

Eat Bulaga

19-20

Ismol Family

That’s My Amboy

Wish I May

Because of You

Hanggang Makita Kang Muli

28-29

Hanggang Makita Kang Muli

22-23

Sunday Pinasaya

Wish I May

IMBG 20 I am Bubble Gang

24 Oras Weekend

27-28

Wowowin

*special program

Karelasyon 30

UPDATES

GMA Wordwide Celebrates 20th Anniversary Rhian Ramos Signs with GMA Anew UPDATES

GMA Network Net Income Soars 148 Percent in Q1 2016 UPDATES

2016 GMA Annual Stockholders’ Meeting COVER STORY

GMA’s Eleksyon 2016 is Most Trusted Coverage on TV and Online

Regine Velasquez-Alcasid Holds Timeless Concert Tour in US

11 Best Summer Finds From Tom and Carla’s Celebrity Ukay-Ukay at Heatwave Clearance Sale GMA Network Excellence Awardee Tops 2015 Bar Exam

Poor Senorita

Ismol Family Because of You

GMA Network Retains Ratings Supremacy in Urban Luzon and Mega Manila

NUTAM

RANK

RATINGS

Vampire Ang Daddy Ko

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE

ON THE COVER:

(L-R) GMA News Pillars Vicky Morales, Arnold Clavio, Jessica Soho, Mike Enriquez, Mel Tiangco and Howie Severino

GMA Kapuso Magazine (Electronic) is a monthly publication of GMA Network, Inc. published by the Corporate Affairs Division, 16th Floor, GMA Network Center, EDSA cor. Timog, Ave., Diliman, Q.C. Trunkline No. (632) 982-7777.

UPDATES

GMA Worldwide Celebrates

20th Anniversary GWI Vice President Roxanne Barcelona in GWI’s booth at the recent Hong Kong Filmart

MA Worldwide, Inc. (GWI), GMA Network’s program syndication arm, celebrates its 20th year of showcasing GMA programs to the ASEAN region and beyond.

GWI is off to a rousing start this year as it scored another victory with the sale of two top-rated Kapuso programs, Ang Dalawang Mrs. Real and My Destiny’s program formats to Mexican production company, Altavision Producciones. This followed the groundbreaking sale of Munting Heredera’s rights to Telefilm Atlantico. “In the past, all the popular telenovelas that aired in the Philippines were produced in Mexico,” explains Roxanne J. Barcelona, Vice President of GWI. “It makes us proud knowing that viewers in that part of the world will finally get to watch some of our very own productions.” With 20 years of being in the content distribution and syndication business, GWI has become a force to reckon with in the international content market, creating new and exciting opportunities for GMA programs and artists.

My Destiny joins Munting Heredera and Ang Dalawang Mrs. Real in the list of Kapuso dramas to be localized in Mexico.

A Mexican adaptation of Ang Dalawang Mrs. Real will soon reach viewers in Latin America.

UPDATES

Rhian Ramos Signs with GMA Anew

ersatile actress Rhian Ramos remained a loyal Kapuso as she recently signed another exclusive contract with GMA Network.

Rhian is very happy with new contract with GMA 7 which has been her home network for the past decade. “Dito ako sa GMA nagsimula 10 years ago. I’m happy to continue a great relationship with the company. It’s pretty much my family. Dito na ako lumaki.”

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE

UPDATES

(L-R): GMA Executive Vice President and Chief Financial Officer Felipe S. Yalong, President and Chief Operating Officer Gilberto R. Duavit, Jr., Chairman and Chief Executive Officer Felipe L. Gozon, and Chief Marketing Officer Lizelle G. Maralag

GMA Network Net Income Soars 148 Percent in Q1 2016 G

MA Network, Inc. (GMA) recorded a net income of P1.013 billion in Q1 2016, up 148 percent versus last year. Consolidated revenues from all platforms climbed 30 percent to P3.903 billion, driven by higher airtime sales, which grew 32 percent to P3.571 billion by the end of the quarter. “We expect our company’s financial performance to continue to trend upward,” said GMA Chairman and CEO Atty. Felipe L. Gozon. “We are pleased with the results of the first quarter and we hope to further improve the growth particularly in regular advertising.” Total operating expenses (OPEX) for the first three months slightly went up by 2 percent to P2.470 billion, with production costs and general and administrative expenses increasing by only 1 percent and 3 percent, respectively. EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at P1.838 billion, up 86 percent from the same period last year. Strengthening its commitment of delivering high shareholder return, GMA paid out cash dividends to its shareholders worth P1.944 billion at P0.40 per share on May 16, 2016. GMA secured the biggest share in advertising loading (including political

ads) among free-to-air channels during the quarter with 35 percent while ABSCBN got 28 percent. Without pol ads, GMA still got the largest share with 36 percent versus ABS-CBN’s 29 percent. For 2016, the Network’s capital expenditures (CAPEX) were pegged at P550 million including multi-million investments for mounting the most comprehensive coverage of the upcoming presidential elections. The amount, however, excludes budget for the Network’s digital terrestrial television (DTT) rollout.

Business Developments All the Network’s major platforms showed a double-digit increase over comparable periods with flagship GMA Channel 7 delivering a 32 percent improvement in airtime revenues. Leading local news channel GMA News TV also grew by 13 percent, while Radio went up 38 percent. Revenues of GMA International (GMAI) were also up by 13 percent, driven by the subscriber growth of international channels GMA Pinoy TV, GMA Life TV, and GMA News TV International, as well as sales from several successful international events. As it continues to reach the unserved and underserved Filipino markets abroad, GMAI announced last March new partnerships with OSN, a major direct-to-

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE

home (DTH) operator in the Middle East and North Africa; Starhub, one of the leading pay-TV operators in Singapore; and with TelCo player LycaTV, one of the largest ethnic content providers in Europe, for the multi-platform distribution of GMA channels via traditional television and mobile. Meanwhile, GMA New Media, Inc. (NMI) sustained the uptrend in external revenues, which soared 100 percent in the first quarter due to existing partnerships with over-the-top (OTT) providers and programmatic advertising. On the regional front, GMA continues to improve and expand its coverage through transmission upgrades, allowing it to offer Kapuso programs across more areas in the country. Last February, the Network commissioned a 5KW TV relay station in Butuan City (TV26 Butuan), reaching an estimated 120,000 TV households in Agusan Del Norte, Agusan Del Sur, and Camiguin.

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE

UPDATES

2016 GMA ANNUAL STOCKHOLDERS’ MEETING Following is the report delivered by GMA Network Chairman and CEO Felipe L. Gozon at the GMA Network Annual Stockholders’ Meeting held on May 18, 2016.

percent and 77 percent of the total urban TV households in the country, respectively. Consequently, we grabbed overall leadership in national TV ratings or NUTAM beginning September.

GMA Network Chairman and CEO Felipe L. Gozon

Based on data from Nielsen TV Audience Measurement in 2015:

Fellow Directors GMA Officers Heads of our Subsidiaries Shareholders of GMA Network Guests Ladies and Gentlemen

Our nationwide average household audience share was 35.4 percent -- 0.5 percent higher than ABS-CBN’s average.

Magandang umaga sa inyong lahat, mga kapuso! On behalf of the Board of Directors of GMA Network, I welcome all of you to our Annual Stockholders’ Meeting. I am excited to speak before you this morning because I have so many good news to share. Last year, we celebrated our 65th anniversary – a milestone that was made more memorable by our achievements in both TV ratings and revenues. These achievements in 2015 were made possible by our resilience, hard work, and strategic management decisions. Managing costs without compromising the quality of our programming content and without causing any delay in our upgrading and expansion plans played a key role to our success. Allow me to summarize our company’s remarkable accomplishments last year… First, on our ratings performance... Our programming strategy proved effective as we managed to regain momentum in TV ratings. We increased our advantage in the important areas of Mega Manila and Urban Luzon, which in 2015 accounted for 59

In Mega Manila, GMA’s audience share lead over ABS-CBN stood at 14.7 percentage points; in Urban Luzon GMA led ABS by 9.1 percentage points. GMA News TV, our second free-to-air channel, remained the leading news channel in the country. Second, on our financial performance... Our objective last year was merely to bounce back from a tough year in 2014. But we did better in 2015 with financial results that were higher than we expected. In 2015, our consolidated gross revenues ended at 13.727 billion pesos – up 15 percent versus our 2014 performance. Our airtime revenues amounted to 12.381 billion pesos - 16 percent higher than 2014. Leading the pack was channel 7, with revenues that went up 16 percent versus 2014. While political advocacies contributed to the increase, sales from regular advertisers still remained as a substantial part of the platform’s revenue hike in 2015. Our Radio business recorded a 15 percent revenue growth while GMA News TV posted a 24 percent increase. On the other hand, Regional TV’s sales - despite the cancellation of the local entertainment programs, conversion of 5 program originating stations to only

GMA KAPUSO MAGAZINE | MAY 2016 ISSUE

selling stations, substantial reduction of our regional TV personnel, etc. - went down by only 4 percent. In contrast to the remarkable increases in our revenues, our total operating expenses of 10.745 billion pesos went up by only 2 percent compared to 2014. As a result, our (a) EBITDA settled at 4.641 billion pesos, 59 percent higher versus the previous year, and (b) consolidated net income after tax in 2015 stood at 2.126 billion pesos - 111 percent or 1.116 billion pesos more than last year’s bottom line.

Other business units & subsidiaries Our other revenue streams also contributed 1.346 billion pesos - a 3 percent improvement compared to 2014 - to our consolidated revenues in 2015. While the subscribers of our three international channels GMA Pinoy TV, GMA Life TV, and GMA News TV International grew year-on-year, our revenues from our international operations recorded a 5 percent drop over the previous year due to our agreement to discontinue a payment scheme based on minimum guarantee from a major carrier in the Middle East. This decreased our subscription revenues in 2015. Distribution revenues from our syndication arm, GMA Worldwide, meanwhile, posted a 6 percent increase with the addition of new markets. Consolidated revenues of GMA New Media and its subsidiaries grew 39 percent, boosted by the significant growth in online sales. YouTube earnings recorded a 110 percent increase, while Digify, Inc. Showed a 51 percent growth versus the previous year.

UPDATES

The GMA Network Board of Directors (L-R): Michael John R. Duavit (Director), Anna Teresa Gozon-Abrogar (Director), Joel Marcelo G. Jimenez (Director), Gilberto R. Duavit, Jr. (President and COO), Felipe L. Gozon (Chairman and CEO), Laura J. Westfall (Director), Felipe S. Yalong (Executive Vice President and CFO), Chief Justice Artemio V. Panganiban (Independent Director), Jaime C. Laya (Independent Director), and Roberto O. Parel (Corporate Secretary)

Revenues from GMA records increased 29 percent, with sales from digital downloads and compact discs contributing to the hike. However, revenues from Alta Productions went down by 19 percent, while Script 2010 also posted a 10 percent decline in revenues.

Immediate Future The momentum we gained last year continued to the 1st quarter of 2016, especially because of the effect of the recently concluded elections. If we sustain our performance through the coming months - and I am confident that we will - our revenues and net income this year will end up at unprecedented high levels. Our net income in the 1st quarter of 2016 alone has already breached the one billionpeso mark – 148 percent increase over last year. Speaking of the elections, GMA’s coverage called Eleksyon 2016 was the most preferred among viewers nationwide, with an average people

audience share of 37.7 percent versus ABS-CBN’s 34.1 percent. Our news website, GMA News Online, had 109.8 million page views from May 9 to 11. In contrast, the number of page views for ABS-CBN News.com was only 19.9 million based on data from Effective Measure. As always, we are sparing no effort to continuously produce superior content for the viewing pleasure of our Filipino audience here and abroad. At the moment, our global Pinoy audience can already enjoy our programs through various available platforms beyond their TV screens including online and mobile gadgets. We will be launching our digital terrestrial TV technology - a product that we believe is better than what our main rival has introduced to the market.

Conclusion As I had mentioned before, there is hardly any other industry that is more dynamic, fiercely competitive and challenging than broadcasting. Constant innovation is key to success in this business. I am proud to say that, so

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE

far, we have been taking the right steps in improving all areas of our business. Alongside our journey, we never forget our commitment of providing the best returns to our investors. Two days ago, May 16, we released our dividend payout of 1.944 billion pesos, equivalent to forty centavos per share, to all our shareholders as of April 25, 2016. Since our IPO in 2007, we have been paying cash dividends to our shareholders equivalent to almost 100 percent of our net income each year. Finally, because we continue to be blessed with so many important international and domestic awards last year, I’m sure you’ll allow me not to mention them anymore. My heartfelt appreciation goes out to all of you, our shareholders, our officers, employees and talents, other stakeholders, and especially our loyal Kapuso viewers, for your continued support. Dahil sa inyong lahat kaya tayo no. 1 ngayon. Maraming salamat sa inyong lahat.

COVER STORY

GMA’s Eleksyon 2016 is Most Trusted Coverage on TV and Online First to broadcast partial and unofficial results

Students from AMA Computer College

s the country went through one of the most polarizing national elections to date, more Filipinos trusted GMA News and Public Affairs’ Eleksyon 2016 special coverage as the most credible news source on-air and online. Based on Nielsen TV Audience Measurement overnight ratings data for May 9, GMA’s special coverage of the 2016 national elections was the most watched nationwide with an average people share of 37.7 percent in National Urban Television Audience Measurement (NUTAM). It beat ABS-CBN’s Halalan 2016, which posted 34.1 percent and TV5’s Bilang Pilipino 2016 with 7.5 percent. The Kapuso Network’s special coverage registered even higher numbers in the viewer-rich areas of Urban Luzon and Mega Manila, which respectively account for 77 and 60 percent of all urban TV households in the country. GMA’s Eleksyon 2016 scored an average people share of 42.4 percent in Urban Luzon as against ABS’ 29.2 percent and TV5’s 6.1 percent. In Mega Manila, Eleksyon 2016 dominated competition with 45.3 percent compared to ABS’ 25.7 percent and TV5’s 6.1 percent. Eleksyon 2016 was also the go-to news source of netizens with GMA News Online registering an unprecedented 109.8 million page views from May 9 to 11, according to data from Effective Measure. It led ABS-CBN News, which only managed 19.9 million page views on the same period. Led by GMA News pillars Mel Tiangco, Mike Enriquez, Vicky Morales, Arnold Clavio, Howie Severino, and Jessica Soho, Eleksyon 2016 delivered the most in-depth

GMA News Pillars (L-R) Arnold Clavio, Mel Tiangco, Mike Enriquez, Jessica Soho and Vicky Morales strike wacky poses

GMA KAPUSO MAGAZINE | MAY 2016 ISSUE

coverage of the national elections being the first television news organization to broadcast the partial and unofficial results tally.

Kapuso stars participate in Eleksyon 2016 Images c/o @gmaregionaltv Instagram

And shortly after, GMA News was able to do a live interview with leading presidential candidate Mayor Rody Duterte in the Kapuso primetime newscast 24 Oras. GMA’s special coverage also featured cutting edge technology such as immersive graphics, 360-degree video cameras, and live drone footages that took Filipinos right where the action was, giving them blow-by-blow accounts of the election as it unfolded nationwide.

Benjamin Alves

Rocco Nacino

Glaiza de Castro with To The Top winners

Betong Sumaya

Adding star power to the coverage were Kapuso celebrities who volunteered at the Eleksyon 2016 call center as well as phenomenal star Maine Mendoza, who shared the do’s and don’ts of voting via a number of vignettes, and also Eat Bulaga’s HBD Girl Patricia Tumulak, who gave live updates from GMA’s social media hub. As it reaffirms its commitment to delivering Serbisyong Totoo, GMA News and Public Affairs has once again proven that it is the country’s most trusted news source on-air and online, especially during events of national significance.

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE

Regine Velasquez-Alcasid Holds

Concert Tour in US 2016 is shaping up to be a busy year for Regine as she also recently returned to primetime television through the drama series Poor Señorita, currently airing on GMA’s flagship international channel GMA Pinoy TV. The Kapuso star also hosts her own lifestyle show, Sarap Diva, which can also be seen abroad on GMA Life TV.

sia’s Songbird Regine VelasquezAlcasid takes center stage once more in “Timeless: The USA Concert Tour 2016” sponsored by GMA International in Chicago, New Jersey, San Diego and Pasadena this May.

“It’s certainly been a blessed year so far, with a new primetime series and my upcoming back-to-back concerts in the US,” shares the renowned actresssinger. “I’m looking forward to sharing a night full of music, fun and love with my kababayans who have given their unwavering support through the years.” The multi-talented delighted her many fans in the East Coast as she performed in Chicago on May 13 at the Copernicus Center. She proceeded to New Jersey

on May 14 for the second leg which was held at the Bergen Performing Arts Center. Flying over to the West Coast, Regine will be at the Town and Country Resort & Convention Center on May 21 before entertaining her fans at The Pasadena Civic Auditorium in Pasadena on May 22. GMA International – through its three international channels GMA Pinoy TV, GMA Life TV and GMA News TV International – is the exclusive media sponsor of the concert tour, produced by Starmedia Entertainment. Timeless in New Jersey was sponsored by Xoom.com A Paypal Service, PagIBIG Fund, Island Pacific Supermarket, Pigrolac Feeds, Eva Air, and Financial Rescue LLC.

www.GMApinoytv.com www.facebook.com/GMAPinoyTV @GMAPinoyTV

GMA KAPUSO MAGAZINE | MAY 2016 ISSUE

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MAY 2016

Best Summer Finds From Tom and Carla’s Celebrity Ukay-Ukay at Heatwave Clearance Sale

om and Carla’s Celebrity Ukay-Ukay offered a treasure trove of items from your favorite Kapuso stars at the Heatwave Clearance Sale at the World Trade Center in Pasay City last May 13 to 15. Pre-loved clothes, shoes, bags and other items from Kapuso celebrities were on sale at the bazaar which was organized by Cut Unlimited. One hundred percent of the proceeds of Tom and Carla’s Ukay-ukay and part of the ticket proceeds from the Heatwave Clearance Sale will be donated to GMA’s socio-civic arm, the GMA Kapuso Foundation. (L-R) GMA artists Derrick Monasterio and Bea Binene, Rikki Escudero and Mel Tiangco of GMA Kapuso Foundation, Mayose Bautista of Cut Unlimited and Maja Pangilinan and Lance Guiang of SUN Digitel Mobile

In addition to Celebrity Ukay-Ukay ambassadors Tom Rodriguez and Carla Abellana, celebrities who donated to the cause this year include Mike Tan, Julie Anne San Jose, Bea Binene, Louise De los Reyes, Andre Paras, Juancho Trivino, Luane Dy, John Pol Dimaculangan and Ms. Mel Tiangco.

GMA Network Excellence Awardee Tops 2015 Bar Exam

he Kapuso Network proudly congratulates GMA Network Excellence Awardee Rachel Angeli B. Miranda who recently topped the 2015 Philippine Bar Examinations. In 2011, Miranda was among the recipients of the GMA Network Excellence Award, the Network’s corporate social responsibility initiative that instills educational excellence in the youth by recognizing outstanding graduating students who have shown exemplary leadership, stellar academic performance, and proactive social responsibility. Miranda graduated cum laude from the UP College of Mass Communication and earned her Juris Doctor degree from the UP College of Law. During a courtesy call held recently, GMA Chairman and CEO Atty. Felipe L. Gozon lauded the bar topnotcher. “She has a bright future,” said Gozon. “We are gratified that in our Excellence program, we choose the best and the brightest.”

(L-R) GMA Vice President for Corporate Affairs and Communications Angela Javier Cruz, Bar Top Notcher Rachel Angeli B. Miranda and GMA Chairman and CEO Felipe L. Gozon

Gozon further advised Miranda, as well as other bar exam passers to excel in their endeavors. “There is no substitute for hard work. In law, it’s about preparation, preparation, and preparation,” he emphasized. For more information on the GMA Network Excellence Award, visit the website www.gmanetwork.com/ excellenceaward.

GMA KAPUSO MAGAZINE |MAY 2016 ISSUE