GMA Network Earmarks Just Under P2 Billion CAPEX for 2022

Broadcast giant GMA Network is setting aside just under P2 billion as capital expenditure for 2022 to further expand its reach, create new content, and improve its operations. The amount is about 66 percent higher than the P1.2 billion CAPEX for 2021. 

“For next year, the capex earmarked is a little less than P2 billion, which will be for the expansion of our digital transmission network, upgrading of our post-production and content layout facilities, and expansion of our regional network etc.,” said GMA Network Chairman Felipe Gozon during a special stockholders’ meeting on Thursday, December 9. “We have not yet started the construction of our new building and studios. That includes investment in content and other investments.”

GMA reported revenues of P19.33 billion in 2020, up 17 percent from the previous year. Profits also rose 128 percent to P6 billion in 2020. The company said it benefited from the shutdown of rival ABS-CBN, whose license was revoked after Congress denied the extension of its congressional franchise last year. 

Gozon said the company is optimistic about its prospects in 2022, especially with national elections in May. The 82-year-old chairman said, however, that he expects that campaign ads will only account for a small portion of GMA’s revenues, which is still dominated by recurring advertisers. 

“In the last 2019 elections, political ad sales only contributed five percent of our total consolidated sales,” he said. “With the pandemic and the Comelec-imposed increase 40 percent to 50 percent discounts on published rates for political ads, we don’t think that the share of political ads will significantly change from prior elections. Our main source of revenues will still come from recurring advertisers.

“The situation about the pandemic is improving that’s why we expect the momentum in the latter part of the fourth quarter this year to continue up to next year,” he added. “And next year being a presidential election year, we have reason to be optimistic. However, it still depends how far and fast our recovery will be and also whether the pandemic will surge or not next year.” 

The company said it intends to invest heavily in talent management and development, while building more digital stations “to remain number 1.” 

Gozon also revealed that the company has started investing in local startups through its wholly owned subsidiary GMA Ventures Inc. (GVI), although he declined to name the companies.

“Our diversification efforts to invest in businesses that are not related to our core business of broadcasting will be carried out by GVI,” he said.

To this end, GMA Network announced that stockholders approved the proposal to increase the authorized capital stock of GVI from P50 million to P1 billion, which subscription shall initially be at P250 million and the payment of P100 million. 

Last year, the company raised about P500 million after selling about P900,000 of its Affordabox digital TV receiver.