GMA Network

Pandemic prompts GMA to cut 2020 spending

Camille Elemia
Despite this, the company eyes higher net profit this year

Media giant GMA Network has slowed down spending for the year due to the coronavirus pandemic.

GMA chairman and CEO Felipe Gozon said the network would put off spending P376 million largely alloted for equipment upgrades.

In a disclosure to the Philippine Stock Exchange on Wednesday, July 22, GMA confirmed quotes of Gozon in an Inquirer report.

Citing Gozon, the report also said that GMA’s P834 million spending budget for 2020 would be used for digital television transmitters.

The company reported a net income of P583.4 million in its first quarter earnings, down 19% from P721.8 million in the same period last year.

Gross revenue was also down by 7% to P3.5 billion from P3.8 billion in the same period last year, owing to absence of political advertisements after the 2019 elections.

Despite this, Gozon said the company expects higher net profit this year, citing a “steady top line coupled with cost-cutting measures.”

GMA recently launched its own Digital Terrestrial Television receiver – called Affordabox – over 5 years after its main rival ABS-CBN launched TV Plus.

ABS-CBN was forced off air early May, with lawmakers rejecting its bid for a fresh franchise for alleged “numerous violations” on July 10 – a decision widely condemned as politically motivated. – Rappler.com

Camille Elemia

Camille Elemia is Rappler's lead reporter for media, disinformation issues, and democracy. She won an ILO award in 2017. She received the prestigious Fulbright-Hubert Humphrey fellowship in 2019, allowing her to further study media and politics in the US. Email camille.elemia@rappler.com