September 02, 2014

Court ruling allows more airtime for election ads

The Supreme Court has reportedly ruled in favor of the broadcast industry regarding the length of airtime allowed for election advertisements. The case stemmed from a resolution of the Commission on Elections (Comelec) which limited the advertisement airtime for candidates running for national positions to a total of only 120 minutes for television and 180 minutes for radio during the entire campaign period. The court ruled that these caps should be applied on a per station basis and not per candidate.

Our take: The Comelec said it will not appeal the ruling given that the high court has voted unanimously in favor of the broadcast industry. This should have a positive impact to ad revenues and profits of broadcast companies in an election year as this will significantly increase the allowable airtime that each TV and radio station can offer. We believe that the key beneficiaries of this ruling are ABS-CBN Corp (ABS, ABSP) and GMA Network Inc (GMA7, GMAP) given the extensive reach of their TV and radio broadcasting networks. – WealthSec