GMA 7 may exceed this year's growth expectations

GMA Network Inc., the Philippines’ leading broadcast company, may exceed growth expectations this year, its president and chief executive said, a day before its Wednesday stockholder’s meeting.

Expansion is expected to come from the continued high ratings of its television programs, subscriber growth in its international TV channels, improved revenues from DZBB, its radio business, and QTV, its sister TV channel, GMA Network’s Felipe L. Gozon Jr. said. He made this announcement during a general assembly attended by company employees on Tuesday.

The company that runs the country’s top free television channel may even expand by as much as 25 percent this year, Gozon added. Besides being higher than this year’s growth goals of 18 percent, Gozon’s estimate is also bigger than its five-year targets.

In last year’s April briefing, company executives expect GMA Network to grow by 20 percent every year for a five year period. However, Gozon underscored the need to improve national ratings where rival ABS-CBN Broadcasting Corp. dominates.

“We have to narrow the gap in our ratings in Visayas and Mindanao where our competitor is having a big lead. We should aim for greater improvement in the cost-efficiency of our operations. These initiatives will help us achieve a higher growth rate this year," he said.

The listed company expects to surpass its P2.8-billion target net income this year after posting a double-digit growth for the first quarter amid industry cut in advertising expenditures. This is 18.64 percent higher than the P2.36 billion earned in 2008.

The company is spending P 72.56 million for the upgrade of its facilities in three provinces. Gozon said P19.56 million will be spent on the rectification or reinforcement of tower and replacement of new antenna for TV5 Davao, P28.5 million for the new five kiloWatt (kW) UHF TV relay station in Jala-Jala, Rizal to “augment" its signal in Laguna using Channel 25.

A separate P24.5 million will be alloted for the reactivation of TV relay station of TV-5 Mt. Amuyao and increase of power to five kWs from 100 watt. This upgrade will enhance the network’s broadcast in the provinces of Mt. Province, Isabela, Cagayan, Nueva Viscaya and portions of Kalinga, Apayao, and Ifugao.

“In the regions, upgrading of our facilities continues and results…show that our signal is now far superior to ABS-CBN in Metro Angeles and Metro Baguio," he said.

Based on the data from AGB Nielsen Media Research, GMA continued to lead Mega Manila with an average audience share of 40.4 percent compared to ABS-CBN’s 31.1 percent. Mega Manila accounts for 49.3 percent of National Urban Television Audience Measurement (NUTAM).

In terms of NUTAM, GMA is behind by 1.9 percent although the company is ahead by 1.9 percent in Luzon, which comprises 77 percent of total viewing audience. GMA Network dominates in the main market of Luzon while ABS-CBN leads in Visayas and Mindanao.

“We are aware of that lead in those areas but we have not seen a shift in where advertisers put their ad money. It reaffirms that when they look at key markets, they look at Luzon and Mega Manila," GMA Network vice president for investor relations and compliance Yahl Ari Augusto P. Chio said in an analysts briefing last week. “But once GMA kicks in Visayas and Mindanao, it will solidify our position."

From January to April this year, GMA Network’s ad load is 8,031 minutes more than ABS-CBN. Shares of GMA Network Inc. rose 20 centavos to P5.30 during Tuesday’s trading at the Philippine Stock Exchange.

GMA Network Inc. is the parent company of GMA New Media Inc. which, in turn, wholly owns Media Merge Corp., the entity that runs GMANews.TV.

GMANews.TV

Incoming search terms:

• gma network logo
• GMA 7 growth
• gma logo
• stockholdermeeting gma7