GMA Network to beef up provincial operations

GMA Network Inc. is stepping up its local expansion this year as it aims to extend its leadership in the broadcasting industry to parts of the country outside Metro Manila.

GMA president Felipe Gozon said over the weekend the company’s main target for the year is to broaden its presence nationwide as it gears towards dominating provincial programming after unanimously leading in TV viewership ratings across Mega-Manila.

He said the company would also be doing a lot of provincial tours to promote the network and in turn attract more viewers.

Gilberto Duavit Jr., executive vice-president and chief operating officer of the network, said GMA will spend P175 million to P200 million to upgrade its facilities and infrastructure. Funding, he said, would come from internally-generated funds.

Capital expenditures for program- and studio-related spending are not yet included in this figure.

Duavit said the network will improve its infrastructure in Legaspi, Naga and Batangas. New relay stations will be built in Negros Island and Iligan City, while relay stations in Dumaguete, Cabarroguis, Jolo, Virac, Roxas and Leyte will be relocated to increase reach.

He said the network is also preparing to construct a TV station in Bacolod City after having been granted a television frequency by the National Telecommunications Commission (NTC).

"With our expansion projects across key areas in the provinces, we hope to solidify our position as the leading Philippine TV Network," Gozon said.

Gozon said the network will also build two state-of-the-art studios within its compound that will house more programs including huge variety shows.

GMA began overtaking its rival, ABS-CBN in total day ratings since late December of 2003, but it began to decisively lead in ratings across all time blocks last September, including the most coveted early primetime block.

GMA, through subsidiary Citynet, is also preparing for the programs to be shown on Channel 11 after it has signed a co-production and blocktime agreement with Zoe TV. The Network is providing the technical facilities and equipment needed to operate Channel 11.

Gozon said Channel 11 would provide GMA with a new platform to showcase more innovative shows.

Funding for the expansion project will come from internally generated funds.

GMA is now debt-free after it fully settled P1.9 billion five-year loan using internally generated funds. The network paid more than P543 million in principal and interest last February 28.

GMA chairman president and chief executive officer

Felipe Gozon earlier said the company does not need to go public at this time as it has enough financial resources to sustain its expansion projects.

For this year, GMA has earmarked P600 million for its capital expenditures which does not include requirements for the international channel and channel 11. - By Zenia Dela Peña