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Monday, July 17, 2006
GMA defers stock offer as TV advertising drops
IN ITS effort to grab the leading position in Cebu from its competitor-network, GMA Network Inc. plans to double its marketing efforts in the province this year.
According to GMA chairman, president and chief executive officer Felipe Gozon, about P5 million has already been released for the prizes of the “house-to-house” promotions of the network.
He also revealed that the company has postponed its initial public offering (IPO) to next year because of the drop in television advertising spending by companies, which will affect its revenues this year.
Not in Cebu
He told a press conference on the network’s 56th anniversary at its office in in Nivel Hills, Cebu City last Friday that GMA leads in Manila, but not in Cebu.
“The Cebu market is just like the Manila market. Our fault was that we allowed the competitor to be here for a long time. We lost here (Cebu) by default,” Gozon said.
He said the company’s efforts have started to pay off since some of its shows, especially the news and public affairs—such as 24 Oras and Balitang Bisdak—have rated number one in various surveys.
“We are starting to pick up. When we started (to establish presence) here, GMA was not even seen here,” Gozon said.
No plans
He said the network does not have immediate plans to add more local programs to its current “Balitang Bisdak” and “Oi.”
“But (the network is not closing its doors) if these two programs will earn, we might consider adding more,” he said.
With regard the IPO, Gozon said the company is not worried with the postponement since “it does not have immediate need” for additional capital.
IPO is the sale of stock by a once private company to transform itself into a publicly held one. It is usually done to raise cash.
He said GMA has decreased its revenue target this year to P2 billion from P2.4 billion due to the drop in TV advertising revenues based in its June and July revenues.
This has not, however, discouraged the network from pursuing its plans, such as adding one international channel to Pinoy TV by end of year.
GMA Network and QTV shows won 16 awards in the recent International Film and Video Festival held last June 3 in Los Angeles, California. The awards include six Silver Screen Second Place awards and 10 certificates of creative excellence. (JBN)
For Bisaya stories from Cebu. Click here. (July 17, 2006 issue)
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