GMA-7's CEO GOZON: The fourth-quarter was bad… it will be lower that last year’s levels

FOURTH-QUARTER profits of GMA Network, Inc. are expected to be lower than last year’s levels as firms continued to hold off from pouring more budget to advertisements, an official said Wednesday night.

Felipe L. Gozon, GMA chairman and chief executive officer, said that while revenues next year will remain weak, it is forecast to be better than 2011 levels.

“The fourth-quarter was bad… it will be lower that last year’s levels,” Mr. Gozon said, noting the firm may book less than P800 million in revenues for December.

Multinational companies continued to cut back on advertisements, he explained, because of the economic crises in the euro zone and in the US.

Last month, Mr. Gozon said that the firm will miss its 2011 target of topping its P2.8-billion profit in 2010 due to the absence of political advertisements and cuts in ad spending.

The broadcasting giant’s earnings inched up by 0.11% to P2.821 billion in 2010 from P2.818 billion in 2009.

“[Revenues in] 2012 will be better than 2011,” Mr. Gozon said, noting that high ratings garnered by GMA shows will make the network “very attractive” to advertisers.

“We are in the best position to attract advertisers because the ratings are all up,” Mr. Gozon said.

He noted that 2013 will probably be a stronger year because of the senatorial elections.

For next year, GMA Network has allotted P600 million in capital expenditures to fund the construction of three to four local stations in various provinces, Mr. Gozon said.

Each local station is estimated to cost around P100 million, he added. 

The remaining budget, meanwhile, will be used to build open sound studios in Quezon City.

Shares of GMA Network closed 0.47% or P0.03 higher at P6.38 apiece yesterday

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