GMA, Ang to finalize share deal this November
MANILA, Philippines – The majority shareholders of listed broadcast company GMA Network Inc. are hopeful of finally closing a deal with businessman Ramon S. Ang, who is set to acquire a minority interest in the firm.
The purchase agreement that would pave the way for Ang’s entry into the company would be signed this November, GMA chairman Felipe Gozon said.
“It is taking long but we are now in the homestretch and hopefully we will be signing the purchase agreement by the end of this month,” Gozon said.
Gozon added that the remaining issues are expected to be resolved, leading to the signing of the purchase agreement.
“It is the small dots, the commas, and all that sort of things. Well, it is a big amount that we are talking about so I can’t blame them also. But to me the issues are not significant,” Gozon said.
In June, Ang announced that the planned acquisition of a 30% stake in GMA was a done deal. (READ: Ramon Ang buys 30% of GMA Network)
Financially improved for 2015
Gozon also told reporters on Friday, November 14, that GMA is looking at better financial performance next year, anticipating the advertisement spending of candidates in the 2016 presidential elections.
“For next year, it is a preview year prior to the election year and we have seen a lot of political advocacies starting to advertise already. Other than the political advocacies we should see a slight uptick as far as national advertisers are concerned. So we are looking at a bullish growth for 2015,” said GMA marketing and productions president and chief operating officer Lizelle Maralag.
Earnings of GMA plunged 33% to P1 billion ($22.26 million) in the first 9 months of 2014 from P1.49 billion ($33.16 million) in the same period in 2013.
Revenues fell 9% to P8.9 billion ($198.09 million) from P9.75 billion ($217 million) due to the absence of election-related advertisements this year. GMA booked P724 million ($16.11 million) worth of election-related advertising revenues last year.
The company’s expenses also declined by 1% to P7.5 billion ($166.93 million) from P7.6 billion ($169.15 million).
For the third quarter 2014, GMA reported a 20% rise in net income to P422 million ($9.39 million) from P353 million ($7.86 million) as revenues climbed 4% to P3.14 billion ($69.89 million) from P3.03 billion ($67.44 million).
Expenses, meanwhile, increased 4% to P2.59 billion ($57.65 million) from P2.52 billion ($56.09 million). – Rappler.com
*$1 = P44.93