Unmatched GMA Network Sees Higher Profits in 2021, To Increase Start-Up Capital at P1B

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Facade of the GMA network building along Timog Avenue in Quezon City. PHOTO FILE

Manila, Philippines-

GMA’s scalable strategy, through GMA Ventures Inc., will help the company generate “more revenue and net income for our shareholders,” Chairman and CEO Felipe Gozon said on Thursday (December 9).

Gozon shared some details at the company’s special shareholders meeting, revealing that GMA had invested in “one or two so-called start-up companies” and that other deals were being evaluated.

Once reluctant to make risky new investments, GMA since changed its stance when it announced the creation of GMA Ventures earlier this year to focus on non-core businesses outside of television.

“If a good opportunity arises for the business to generate significant revenue and net income, even though it will require a substantial investment, then [GMA Ventures Inc.] can invest in it. As long as there is little risk involved in the business to invest in, ”Gozon said.

GMA shareholders approved the injection of an initial amount of 100 million pesos into GMA Ventures and gave additional authority to its executive committee to increase it to the total amount of 1 billion pesos for future investments. .

Gozon also assured shareholders that future dividend payments would not be affected as GMA has no long-term debt and cash flow remains “very healthy”.

GMA saw its price of the year soar 176% to P16.60 last October following a significant increase in profits and the declaration of dividends after President Rodrigo Duterte ordered the principal shutdown rival ABS-CBN Corp. unencrypted broadcasts in 2020.

For 2021, Gozon said GMA will exceed the previous target of increasing its net profit by 15% from the previous year, when GMA recorded a 128% increase in profits to almost 6 billion pesos.

He said GMA will continue to invest in content production, talent management and development while expanding its presence in digital TV and the Philippine overseas market.
He added that the television industry will remain strong in 2022 with the presidential elections.

Gozon explained that recurring, non-political advertising will provide the bulk of ad sales next year.

He said political ads in 2019 accounted for around 5% of total sales and the company expects a similar figure next year due to the impact of the COVID-19 pandemic and the caps imposed by the Election Commission on Political Advertising Tariffs.

BST

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