Globo increases advertising revenue and profits R$ 838.7…

Medium & Message
March 28, 2024 – 12:41

The share of advertising in the composition of Globo Comunicação e Participações (GCP)’s overall revenue grew in 2023 compared to the previous year. According to the financial statement released by the company this Thursday, the 28th, at the end of last year, Globo had 63% of its revenue coming from advertising while 37% corresponded to content.

In 2023, the total revenue obtained by GCP with advertising contracts and commercialization of media spaces was 2% higher than in 2022, which contributed to the increase in business share.

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In recent years, the share of advertising was already around 60%, but grew slightly in the previous year due to the 6% reduction in revenue obtained from content, mainly due to the decline in pay TV.

In a report published in Valor Econômico, Manuel Belmar, director of the areas of finance, infrastructure, legal, digital products and paid channels at Globo, considered that the company’s portfolio of content products, including Globoplay and the Premiere and Combate channels , saw growth in both subscribers and revenue. This, according to him, mitigated the effect on the decline of traditional pay TV.

Globe: profits, revenue and business

Last year, Globo recorded a net profit of R$838.7 million, a figure 33% lower than the profit obtained by the company in 2022. Belmar, however, explains that the difference is due to the fact that the performance in 2022 having been influenced by non-recurring gains, such as the sale of the Som Livre record label.

In terms of revenue from sales, advertising and services, GCP raised an amount of R$15.13 billion last year. O The result had already been anticipated by the company’s CEO, Paulo Marinho, in an interview also given to Valor Econômico, on the 8th.

The value is practically the same as the revenue obtained in 2022 (R$15.12 billion). The company’s balance sheet also points to an 11% decline in costs, due to some cuts and expense reduction policies and also due to the fact that, in the 2023 financial year, Globo did not have to pay for the acquisition of broadcasting rights large scale, as was the case with the World Cup in 2022.

With the performance, GCP recorded an Ebitda (earnings before interest, taxes, depreciation and amortization) of R$1.239 billion, returning to levels seen in the period prior to the Covid-19 pandemic. In 2022, the company’s EBITDA had been negative, of – R$41 million – due to the high costs of acquiring the World Cup broadcasting rights.