GMA NETWORK TO SPEND P300 M FOR 3 NEW STATIONS!

GMA Network Inc. is investing over P300 million for three more local originating stations in the provinces next year despite weak advertising revenues, a top official said Wednesday.

GMA chairman and chief executive Felipe Gozon told reporters Wednesday the broadcasting company would open stations in the Ilocos region, Batangas and Cagayan de Oro next year, with each requiring about P100 million for the local office, manpower and equipment.“Next year, our capital expenditures will be around P600 million. That includes three local stations, our soundstage and our continuing digitization,” he said.

GMA Network has said that its investments are expected to reach P857 million by the end of the year.

GMA Network reported a 30-percent drop in profits to P1.58 billion in the first three quarters of 2011 from P2.27 billion year-on-year.

Revenues fell 7 percent to P10.11 billion due to the absence of political ads that contributed P2 billion last year.

The company lowered its profit target for the year from P3 billion to just P2 billion.

MST: Jeremiah F. de Guzman

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