GMA 7 allots P600M for capex

MANILA, Philippines - Broadcast giant GMA Network Inc. has earmarked P600 million for its capital expenditures this year to expand its presence in the provinces through the establishment of additional originating stations and to beef up its coverage of the elections scheduled in May.

GMA chairman and chief executive officer Felipe L. Gozon said in an interview that this year’s budget would be used to open new originating stations and to acquire new equipment and facilities.

“We are in an expansion mode. The company will allot around P600 million for its expansion efforts, particularly for the acquisition of new equipment/facilities, opening of new originating stations,” Gozon stressed.

This year’s budget is lower than the P972 million amount earmarked by GMA 7 for its capital expenditures in 2012.

In an interview in November, Gozon said the company would likely spend about P1 billion this year of which P100 million would be used for the acquisition of equipment for the Eleksyon 2013 —       the country’s biggest, most comprehensive, and most credible elections coverage.

Last year, the company has allocated about P175 million to put up originating stations in Ilocos and Bicol. These stations would serve as increments to GMA’s four originating stations found in Cebu, Davao, Iloilo, and Dagupan.

The establishment of additional regional stations affirms the company’s aggressive stance in capturing the interest of Filipino viewers from different parts of the country.

GMA 7 recently acquired transmitters in Mt. Kitanglad in Bukidnon and Mt. Canlandong in Negros Occidental.

Gozon earlier said the company sees its net income hitting the P3 billion mark this year as it expects to rake in about P2 billion in revenues from political advertisements.

“We may hit P3 billion this year,” Gozon said.

The company’s net income likely reached P1.7 billion last year, lower than the original target of P2.8 billion and the revised target of P2.3 billion, due to lower-than-expected ad revenues as well as higher expenses in the fourth quarter of last year.

Gozon said the company hopes to duplicate the P2 billion revenues booked during the 2010 Presidential and National elections this year and is confident that the limits on political ads being imposed by the Commission on Elections (Comelec) would be nullified by the Supreme Court.

Broadcast networks led by GMA together with TV5 have filed petitions before the High Tribunal strongly opposing the decision of the Comelec to limit political ads on televion and radio.