Abs-Cbn vs Gma7 Written Analysis of the Case

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  • Topic: Balance sheet, GMA Network, Quezon City
  • Pages : 6 (1205 words )
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  • Published : March 14, 2013
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I.BACKGROUND OF THE STUDY
ABS-CBN is a major Filipino commercial television network owned and operated by the Filipino media conglomerate ABS-CBN Corporation, a publicly traded company. It is the country's leading television network with advertising revenues amounted to 17.5 billion pesos for the fiscal year 2011. It was launched on 23 October 1953 and is among the first commercial television networks in Asia. Its headquarters is in Quezon City with regional offices and news bureaus in over 25 provincial areas throughout the country. GMA Network (GMA) is a major commercial television & radio network in the Philippines. GMA Network is owned by GMA Network, Inc. a publicly listed company. Its first broadcast on television was on October 29, 1961. It is headquartered in the GMA Network Center in Quezon City and its transmitter is located at Tandang Sora Avenue, Barangay Culiat also in Quezon City.

Rivals GMA Network Inc. and ABS-CBN Corp. both claimed yesterday dominance on television ratings citing two different surveys as indication of a further heating of competition between them. GMA Network claimed it recorded a strong start for the second half of 2012 with another month-long win in nationwide television ratings this July citing a Nielsen ratings survey while ABS-CBN said it continued its lead in TV ratings among urban and rural homes across the country for the month of July citing a Kantar Media polls. ABS-CBN said it grabbed daytime leadership (6 a.m. to 6 p.m.) from its rival station and maintaining its consistent supremacy on primetime (6 p.m. to 12 midnight) when most Filipinos watch TV and advertisers put a larger chunk of their investment in to reach more consumers efficiently. GMA Network, however, cited full July data (July 1 to 21 official data; July 22 to 31 overnight data) of Nielsen where GMA Network scored 33.3 points in total day (6 a.m. to 12 midnight) household audience shares in National Urban Philippines, 1.1 points higher than ABS-CBN’s 32.2 and 18.4 points higher than TV5’s 14.9.

It was a close fight as we witnessed ABS-CBN conquers the first few weeks with an astounding 80% rating versus GMA. Then we feel a counterblow with GMA eventually gaining ground. The last few weeks were rough as the heavy traffic caused fans to experience voting difficulties. Still, Kapuso and Kapamilyas managed to show their support.

II.STATEMENT OF THE PROBLEM
Philippe is a kind of person who really focuses his studies that even relying to his friends was not his identity. One day, while he was going home he saw a lotto ticket that won. After getting the money he decided to put his money into a good investment. But he is confused about the money that he will invest and buy stocks from the two giant television companies.

III.AREAS OF COSIDERATION

SCOPE AND COMPONENTS
Philippe is a province boy which studied in Manila taking Bachelor of Science in Accountancy through the wants of his parents to achieve such goals. He is a kind of person wherein he is very serious in taking his studies. As time he was going home, he saw a lotto ticket that won after the day that he saw it. He was very happy for what happened that he decided to put his money in to a good investment. Data used that had been given:

(Currency in Millions of Philippine Peso)
Year 2010
ABS-CBNGMA7
Cost of Goods Sold14,571.54,816.1
Interest Expense(1,015.8)(3.8)
Income Tax Expense1,107.73,794.2
Total Cash and Short Investments5,821.31,232.4
Total Receivables5,737.55,514.9
Inventory 152.5109.0
Total Current Assets14,581.97,927.7
Total Assets38,958.913,042.2
Total Current Liabilities10,696. 22,141.6
Total Liabilities21,213.32,743.6
Total Equity17,745.510,298.6
Market Value Per ShareP40970P7.010
Number of Shares Outstanding764.8M3.4B
Dividend Per ShareP36.00P18.00
IV.COMPUTATION AND ANALYSIS

LIQUIDITY RATIO
ABS-CBN
(Currency in Millions of Philippine Peso)

Working Ratio= Current...
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