GMA Network Inc. is allocating around P2 billion for capital expenditure (capex) in 2022 to finance the expansion of its digital transmission network, content, and regional network.
“For the next year, the capex earmarked is a little less than P2 billion for digital transmission, upgrading of post production and content play out facilities, expansion of our regional TV network,” Felipe Gozon, GMA chairman and chief executive officer, said in GMA’s virtual annual stockholders meeting.
The capex allocated for next year is part of the over P20-billion capex set for 2021 to 2023 which will be used for the construction of a new building as well as for content production, and expansion of its digital terrestrial television.
“We have not yet started the construction of our new building and studios. That includes investment in content and other investments,” Gozon said.
Gozon is optimistic to sustain the broadcast firm’s growth in terms of revenue and net income in 2022.
“The situation about the pandemic is improving that’s why we expect the momentum in the later part of fourth quarter this year to continue up to next year, and next year, being a presidential year, we have reason to be optimistic. However, it still depends on how far and how fast our recovery will be. And also whether the pandemic will surge or not,” he said.
“With the pandemic and the Commission on Elections increased 40-50 percent discount on published rates, we don’t think the share will significantly change from prior elections. Our main source of revenues will still come from recurring advertisers,” Gozon added.
GMA expects to fall short of its consolidated gross revenue target but will exceed its net income target for this year.
GMA grew its net income by 54 percent to P6.02 billion and revenues by 31 percent to P16.6 billion as of end-September.. – Myla Iglesias
