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Philippines: GMA sees profit growth this year
MANILA, Philippines — GMA Network Inc. is looking at sustained profitability this year, with the broadcast giant not expecting to encounter any bumps in the road with the new administration under the leadership of presumptive president Ferdinand “Bongbong” Marcos Jr.
GMA chairman and CEO Felipe Gozon said the company is projecting a net income after tax of P8.2 billion this year, 8.3 percent higher than last year’s net income of P7.57 billion.
He said the company has earmarked about P2 billion in capital expenditures for 2022.
“We are optimistic that earnings post election heading into fiscal year 2023 will be on track as projected,” Gozon said during the company’s annual stockholders’ meeting yesterday.
Asked about the company’s prospects under a Marcos administration, Gozon said GMA does not expect to encounter legal problems with the new administration given that it is compliant with the requirements of its Congressional franchise and other applicable laws.
“We have no reason to believe that our relationship with the new government will not be friendly, harmonious, and proper,” he said.
Under the Duterte administration, the franchise of GMA’s rival ABS-CBN Corp. was not renewed by lawmakers, leading to the shutdown of its radio and television stations in mid-2020.
With the absence of ABS-CBN, Gozon dismissed claims that GMA is a monopoly, saying that there are other numerous broadcasting TV and radio stations operating in competition with the network.
“True it is that GMA and GTV are the numbers one and two broadcasting stations in terms of ratings and revenues. But that is because GMA is airing programs that the viewers like to watch more than the programs aired by its competitors and you know, the advertisers place their ads in programs that rate higher than other programs,” he said.
As far as GMA’s recent collaboration with ABS-CBN goes, Gozon said the company is open to entering more partnerships with the Lopez-owned company.
“After we have broken the ice, the door is now open for other partnerships with ABS-CBN that will be mutually beneficial to both of us,” he said.
GMA and ABS-CBN last month entered into a historic partnership deal, signing a contract to license some of Star Cinema’s most popular and well-loved movies to air in GMA.
“We are currently in talks with ABS-CBN for another fresh batch of movies for acquisition. We are waiting for the available movie list from them for our team’s review and consideration,” Gozon said.
Source: https://www.philstar.com/business/2022/05/19/2182055/gma-sees-profit-growth-year