GMA Network tracks P2-B income level

MANILA, Philippines - GMA Network Inc. which expects to end the year with net income of P2 billion, is not keen on entertaining offers from interested investors for now, as it seeks to focus on further growing the business.

“I think the outlook is very good if you compare it with last year. I think P2 billion is reachable as net income after tax for 2015,” GMA Network chairman and chief executive officer Felipe Gozon said in a briefing.

GMA’s net income reached P1.8 billion in the first nine months, up 80 percent from P1 billion in the same period last year.

The higher net income was driven by the year-on-year increase in revenues in the nine-month period.

The company’s revenues rose 16 percent to P10.3 billion as of end-September from P8.9 billion in the same period in 2014.

Operating expenses from January to September, meanwhile, grew by only two percent to P7.7 billion from P7.5 billion a year ago.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) reached P3.8 billion from January to September, 50 percent higher than the P2.5 billion in the same period in the previous year.

Gozon said the company intends to focus on growing its business for now, even amid reports of parties interested to purchase shares in the network.

“I think at this point it would be better to the shareholders to focus first on growing the business of the company. That means we will not be entertaining any offers,” he said.

Among the parties who are interested to invest in GMA are former Ilocos Sur governor Luis “Chavit” Singson and boxing champ and Sarangani representative Manny Pacquiao.

Earlier, GMA was in talks with businessman Ramon Ang for the latter’s acquisition of a 34 percent stake in the network but the parties did not proceed with the transaction.

Discussions with Philippine Long Distance Telephone Co. for an investment in the network likewise bogged down.