Broadcasting giant GMA Network Inc. expects to foster a good relationship with the new administration to be led by presumptive President Bongbong Marcos Jr.
During its annual stockholders’ meeting on Wednesday, GMA Network chairperson and chief executive officer Felipe Gozon said he does not see the network encountering legal problems as they remain fully compliant with government requirements to keep its congressional franchise.
“We are compliant with the requirements of our congressional franchise and other applicable laws, we do not expect that we will be encountering legal problems with the new government” Gozon said.
“We have no reason to believe that our relationship with the new government will not be friendly, harmonious, and proper” he added.
Meanwhile, in his presentation, Gozon said the company hopes to grow its net income to P8.2 billion this year from P7.57 billion in 2021 due to income tax rate reduction.
Q1 profit higher
Its first-quarter income improved by 5.4 percent to P2.13 billion from P2.02 billion earned in the same period a year ago.
“The company’s projected net income after tax this year is pegged at P8.2 billion, while the capital expenditure for 2022 is estimated at P2 billion”, he said.
GMA Network expects the recent election season to contribute to its growth. According to Gozon, the media company” comprehensive coverage of the 2022 National and Local Elections was the ‘biggest and most expensive’.
“We are optimistic that earnings post-election heading into the fiscal year 2023 will be on track as projected”, he added.
Last year, GMA’s total revenues grew by 16 percent to P22.45 billion. Its operating expenses also jumped by 16 percent because it funded the production of new programs.
Based on data from Nielsen, GMA Network was the Number 1 channel in the Total Philippines last year, with 46 percent people’s audience share, reaching 97.5 percent of total TV households in the country.