GMA hopes for 15% profit growth in 2021

Published May 19, 2021, 3:56 PM

by James A. Loyola

GMA Network is hoping to grow its net income by 15 percent this year after its strong showing in the first quarter as the economy begins to get back on its feet amid the COVID-19 pandemic.

“Based on the past months, where I said that we have increased our gross revenues by 55 percent and have caused our costs to be kept at bay at 5 percent increases, we feel confident that we might still increase our total gross revenues and net income for 2021,” said GMA Chairman Felipe Gozon.

He added that, “even as we speak now, there are indications that the effects of the pandemic is easing. And, as a consequence, the government is also easing up on the restrictions.”

Gozon noted that, “It is important for the government to revive our economy. We have been in a negative… and so many people are unemployed. Many businesses have closed down.”

He said the firm continues to deliver solid growth this year and, “Looking forward to the rest of 2021, we will continue to invest in long-term, sustainable value creation. Proof of this is our capital allocation for the next three years.” GMA has earmarked more than P20 billion for capital expenditures (CAPEX) and content cost for 2021 to 2023.

This includes cost for the construction of a new building and state-of-the-art studios inside its complex; content production and post-production; and the continuing expansion of GMA’s DTT reach and various projects in the regions to further strengthen the network’s presence nationwide.

“We will continue to be focused on providing meaningful and superior content. This year, we are launching around 100 programs consisting of network-produced and acquired foreign programs,” said Gozon.

On the digital front, GMA will also continue to bolster its content. It is also preparing for Eleksyon 2022 which is seen to boost advertising revenues.