MANILA, Philippines - GMA Network Inc. (GMA), which operates GMA-7, will depend on internally generated funds instead of borrowings to finance its estimated P1 billion capital expenditure program for 2013.
"There appears no need for a fund raising activity relating to that,” Gilberto Duavit, Jr., president of the country's second biggest media firm, told reporters when asked during a recent briefing if it will tap the debt or capital markets to fund its capex.
“Traditionally, our capex are funded through internally generated funds," he added.
The capex budget will involve mainly the setting up new regional stations that specialize in localized content, as well as the widening of the company’s reach in rural areas where close to half of all television viewers reside.
Of the amount, over P100 million will be spend on equipment for its elections coverage.
The company's 2012 capex was at P956 million, a 6.7% increase from a year ago. It covered investments in a media asset management system and in the launch of its Ilocos and Bicol originating stations.
Duavit said they expect to spend a similar amount this 2013.