GMA Network Inc. is set to invest P20 billion in the next three years for its capital spending and production costs, a top network official announced on Wednesday.
During the company's annual stockholders' meeting, GMA Chairman and Chief Executive Officer Atty. Felipe Gozon said the funds are in line with the network's investments in long-term sustainable developments.
The amount includes costs for the construction of a new building and state-of-the-art studios inside the complex in Quezon City.
The funds will also cover the expansion of GMA's digital television reach, as well as various projects in the regions to strengthen its presence across the country.
"We will continue to be focused on providing meaningful and superior content," Gozon said.
This year alone, GMA Network plans to launch around 100 programs consisting of network-produced and acquired foreign programs.
"What we are doing right now is we are converting most of our facilities from analog to DTV-broadcast capable," said Gozon.
This year's spending program covers the construction of storage facilities and a disaster recovery system, new hubs in Zamboanga and Batangas, and the upgrade of radio transmitters.
GMA Network ended the first quarter with a 246% climb in net income to P2.018 billion from P583.42 million in the same quarter last year.
Revenues for the period jumped 55% to P5.457 billion from P3.531 billion, while operating expenses grew 5% to P2.837 billion from P2.691 billion.
Optimistic about 2021
The company is looking to sustain its growth momentum this year.
Gozon said he is optimistic that the company will book double-digit growth in 2021.
"On the optimistic side, I think we can project hopefully — and I underscore the word hopefully — a 15% increase in 2021 over 2020," he said.
For the full-year 2020, GMA's net income surged to P6.00 billion from P2.639 billion in 2019.
Revenues for the 12-month period rose to P19.335 billion from P16.439 billion, while expenses grew to P6.847 billion from P6.325 billion.
"The year 2020 was by far our best in our 70-year history," Gozon said, as the company recorded all-time high results across all financial indicators.
Gozon noted, however, that definite guidance for 2021 is hard to set as the quarantine restrictions across the country continue to be adjusted depending on the impact of the COVID-19 pandemic.
"The situation is really fluid and dynamic as you know, because of the changing health protocols depending on the changes of the occurrence of the pandemic, and so it's going to be a difficult job to project the total 2021 earnings and net income," he said.
The chief executive said that the 15% earnings projection is dependent on the sustained climb in gross revenues, and costs remaining at their current levels.
Shares in GMA Network Inc. were trading down 1.87% or 17 centavos at P8.94 apiece as of 12:43 p.m. on May 19.
GMA News Online is the official news platform of GMA Network Inc. —KBK/KG, GMA News
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