GMA Network Inc. said Thursday it will spend nearly P2 billion next year to expand its digital transmission network and produce more content.
"For next year, the capex [capital expenditure] is little less than P2 billion, which will be for the expansion of our digital transmission network, upgrading of our post-production capabilities and our content play-out facilities as well as expansion of our TV network," Felipe Gozon, chairman and chief executive of GMA, said during the company's virtual stockholders' meeting.
Gozon said the company was optimistic about its growth outlook this year and in 2022, despite the pandemic.
"We will fall short on our consolidated gross revenue target, but we will exceed our net income target for this year. We are hoping that COVID restrictions will continue to be relaxed or even eliminated and that our economy continues to recover and grow,"Gozon said.
"The situation about the pandemic is improving. That is why we expect the momentum in the later part of the quarter this year to continue up to next year. Next year being the presidential election year, we have reason to be optimistic," he said.
Gozon said political ads would contribute about 5 percent to consolidated revenues, or at the same level in the 2019 elections.
"With the pandemic, and the COMELEC imposed an increase from 40-percent to 50-percent discounts 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," he said.
GMA's net income rose 54 percent in the first three quarters to P6.01 billion from P3.91 billion a year ago as consolidated sales went up 31 percent to P16.56 billion.
The company's board of directors approved an increase in authorized capital stock of GMA Ventures Inc. from P50 million to P1 billion.
Gozon said to remain number one, GMA would continue to produce world-class quality content, invest heavily in talent management and development and build more digital stations nationwide so more Filipinos can enjoy digital TV viewing.
"We have to continue to pursue new platforms and partnerships to deliver content to more Filipinos abroad," he said.