Has ABS-CBN's Blocktime Deals with TV5 and A2Z Affected GMA's Ratings?
GMA Network chairman Felipe L. Gozon said the company is earmarking P20 billion in capital expenditures and production costs over the next three years. This is similar to what he announced for the outlays and content costs last year.
The broadcast giant is also planning to launch up to 100 new programs, which will be a mix of network-produced and acquired foreign shows, in 2021.
“We will continue to invest in long term sustainable value creation and proof of this is our capital allocation for the next three years,” Gozon said during stockholders on Wednesday (May 19). “We earmarked more than P20 billion for our capex and content cost for 2021 to 2023. This includes cost for construction of a new building and state of the art studios inside of our complex.”
During the first quarter of 2021, net profit of listed GMA Network reached P2 billion, up from just P583.41 million a year before. Revenues in the same period, meanwhile, rose to P5.46 billion from P3.53 billion in 2020. Total operating expenses increased slightly at P2.84 billion from P2.7 billion.
Gozon said the company hopes to grow its earnings by as much as 15 percent by the end of 2021.
“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, we feel confident that we might still increase our total gross revenues and net income for 2021,” he said.
The chairman said he is seeing indications that the effects of the pandemic are easing and that the government is easing up on quarantine restrictions.
“With the reduction in the rate of infections and with the increase in vaccination towards herd immunity, and if we are optimistic on the optimistic side, I think we can project, hopefully, a 15-percent increase in 2021 over 2020,” he said.
On the question of rival ABS-CBN’s strategy of buying block airtime from TV5 and A2Z Channel 11, Gozon said he is unfazed.
“Without sounding immodest, it has not really adversely affected our ratings and revenues,” he said.
The Lopez-owned network inked agreements with Zoe Broadcast Network, which operates Channel 11, and Manny Pangilinan controlled TV5 to air some of its entertainment programs on those channels, paving the way for it to return to free-to-air TV.
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