GMA Network gears up for diversification

MANILA, Philippines — Broadcast giant GMA Network Inc. targets to become one of the country’s top conglomerates as it puts in motion a diversification plan.

GMA said it is planning to diversify its business operations through newly formed unit GMA Ventures Inc. (GVI), setting its sights on venturing into sunrise industries.

The company, which operates leading television and radio networks, seeks to expand its investments and develop more businesses that provide long term growth.

“We now set our sights on making GMA one of the major conglomerates in the Philippines,” GVI president and chief operating officer Regie Bautista said.

“We are taking this significant step to future-proof the network, champion innovative industries and business models, and be at the forefront of technology advancement and the growth of the digital economy,” said Bautista, who is also GMA’s senior vice president for corporate strategic planning and business development, chief risk officer, and head for program support.

GVI, a holding company that is 100 percent owned by GMA, has been set up with the goal of transforming the GMA Group into one of the country’s big conglomerates.

To tap new markets and revenue streams, GMA said GVI would lead the group in identifying, investing in, and building strong and sustainable businesses.

GVI will focus on sunrise industries such as tech start-ups with substantial growth horizons, and industries that continue to expand.

It will likewise engage in mergers and acquisitions, strategic partnerships, and fund investments within or outside the country.

“Following the successful roll-out of our digital TV products and a banner year in 2020, we are looking at surpassing our own achievements not just in terms of our main media business and content production,” GMA Network and GVI chairman and chief executive officer Felipe Gozon said.

“We are actively looking for ways to diversify the company’s portfolio by investing in sustainable businesses, and ultimately, providing the best returns to our shareholders in the years to come,” Gozon said.

GMA, through GVI, is aiming to be at the forefront of technology advancement and the growth of the digital economy.

“While we tirelessly work on maintaining GMA’s leadership position within the industry, we also intend to further contribute to the growth of the Philippine economy as we protect and increase our shareholder value. GMA Ventures will be our arm in identifying other viable sources of revenue and future profit pools,” GMA president and COO, and GVI vice chairman Gilberto Duavit Jr. said.

GMA is seeing sustained earnings growth this year following a banner financial year in 2020.

The company hopes to post a 15 percent increase in profitability this year after ending 2020 with a net income of P6 billion, a 128 percent surge from the P2.64 billion posted the previous year as advertising revenues across all platforms exhibited growth following the closure of its biggest rival, ABS-CBN.