LISTED MEDIA company GMA Network, Inc. said it has budgeted P1.98 billion for capital expenditures (capex) this year, which will cover the expansion of its digital transmission network and regional television network.
“For 2022, the parent company has allotted P1.978 million for capital expenditures,” the company said in its annual report.
“This will be financed by internally-generated funds,” it added.
GMA Network Chairman and Chief Executive Officer Felipe L. Gozon has said the capex for 2022 would cover “the expansion of our digital transmission network, upgrading of our post-production capabilities and of our content playout facilities, and expansion of our regional TV network, etc.”
The media company announced in January last year that it had set aside more than P20 billion for capex and content costs for 2021 until 2023.
The network saw its attributable net income rise by 26% to P7.53 billion in 2021 from P5.98 billion a year earlier.
Its consolidated revenues reached P22.45 billion, an increase of 16% from P19.34 billion in 2020. This was largely attributable to an increase of 19% in advertising revenue to P21.02 billion from P17.73 billion previously.
“It can be recalled that it was in early May of last year when closest rival ABS-CBN’s free-to-air Channel 2 went off air, following the issuance of a cease-and-desist order to operate by the National Telecommunications Commission (NTC) upon the expiration of ABS CBN’s 25-year franchise,” the company noted.
“From then on, the network’s revenues were buoyed by the shift in advertising placements from the defunct channel,” it added.
GMA Network shares closed 8.69% lower at P14.50 apiece on Wednesday. — Arjay L. Balinbin