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MANILA, Philippines – GMA Network, Incorporated expects to close 2015 with more than P2-billion ($42.32-million) net income on the back of stronger airtime and advertising revenues.
“We have adjusted our ratings and revenue target thrice this year, and as of December 8, we’ve exceeded it,” GMA President and CEO Felipe Gozon told reporters on the sidelines of an event in Quezon City on Wednesday, December 9.
GMA’s net income for the first 9 months of the year ballooned by 79% to P1.8 billion ($38.09 million), with both of its airtime revenues and nationwide ratings effectively maintained at a positive level.
“We’ll end the year with more than 100% increase in net income. It’s more than P2 billion ($42.32 million) now,” Gozon told reporters.
Gozon said the network is in a “strong financial position” as it continues to “dominate the nationwide ratings.”
GMA said it is not in a hurry to secure a deal for a minority stake acquisition, feeling it could fetch a higher price.
Gozon said champion boxer Emmanuel “Manny” Pacquiao and former Ilocos Sur Governor Luis “Chavit” Singson were among the rejected suitors of GMA who offered to buy a stake in the broadcast giant. (READ: GMA-7 rejects Pacquiao, Singson acquisition offers)
In June, talks collapsed between Ramon S. Ang and the majority shareholders of GMA for the businessman’s planned acquisition of a minority stake in the listed broadcast network. This was the fifth time that the broadcast giant terminated acquisition talks with a possible investor.
“We’re not selling; but if we receive an offer that we like, then we’ll sell. If there’s none, then it’s fine,” Gozon said.
Election spending, digitalization
The GMA chief expects higher revenue in 2016 than last year due to election-related advertisements.
“2016 is better than 2015 as it is the election year. We’re now ahead in ratings so we’re expecting greater share in political advertisements,” Gozon told reporters.
For 2016, Gozon said GMA will concentrate in boosting its digital strategy and widening its lead in nationwide ratings.
“Our focus next year will be digital. I don’t want anything related to TV. We also want to widen the lead in ratings. The wider the gap, the more revenues because advertisers get the services of those that people watch,” Gozon said, without going into details.
GMA will also ramp up its capital spending next year, with focus on digital.
“Capital expenditures (capex) next year will be lower in TV while the digital is ramped up. TV is less than P1 billion ($21.16 billion), but for digital, we can’t disclose that. Capex will definitely be higher than last year if you include digital,” Gozon said.
GMA had set a P934 million ($20.40 million) capital spending budget for 2015. – Rappler.com
$1 = P47.25