Broadcasting firm GMA Network Inc. is spending P1.2 billion for regional expansion and completion of its new studios this year, its chairman Felipe Gozon said Wednesday.
"Last year, we allotted over P690 million in capex but did not spend it all, so we carried over what was left to this year," he said.
GMA-7 is building a P1-billion four-story annex, which is directly across the company's compound on Timog Avenue, Quezon City. Construction of the annex began in November 2006.
Gozon said the network also intends to strengthen its signal outside Metro Manila, particularly in Southern Luzon.
For the first four months of 2008, GMA-7 reported a total revenue of P3.5 billion, up 5 percent from P3.37 billion a year ago despite the absence of political advertising. "Last year included P350 million political ad spending," said Gozon.
He said that as of May 20, GMA-7 and subsidiary QTV's combined airtime gross sales already exceeded the P1-billion mark.
"We've been receiving high interest from non-volume advertisers who are starting to see the cost efficiency of television as an advertising venue. These advertisers are charged at a more expensive rate," Gozon said.
He said that first-quarter advertising minutes grew 11.6 percent year-on-year.
For 2008, GMA-7 is eyeing a 20-percent increase in net income to P2.77 billion
