Ang to boost GMA 7 with ideas, says Gozon
Ramon S. Ang. INQUIRER FILE PHOTO / LEO M. SABANGAN II
MANILA, Philippines—An official and part owner of television broadcast giant GMA Network Inc. said businessman Ramon S. Ang would “bring a lot of ideas” into the company should a deal for the latter to acquire a minority stake close.
GMA chair and CEO Felipe Gozon made the comment on the sidelines of the company’s stockholders’ meeting Wednesday in response to queries on what Ang brings to the table.
He added that talks were “progressing smoothly” and that he agreed with Ang’s personal assessment that a deal could close within 30 days.
“Magaling si Mr. Ang [Ang is very capable], he will bring a lot of ideas,” Gozon said, citing the diversification of conglomerate San Miguel Corp., which Ang heads. San Miguel was not part of the deal to buy into GMA, which is controlled by Gozon along with the Duavit and Jimenez families, Ang earlier said.
Gozon, who declined to give details on discussions because these were covered by the customary confidentiality agreement, said the shareholders were only talking to Ang after a rival offer by Philippine Long Distance Telephone Co. did not result in a final agreement.
Article continues after this advertisementThe potential buy-in comes at a time when GMA is challenged to match profits last year amid higher costs.
Article continues after this advertisementNet income in 2013 rose 3 percent to P1.67 billion mainly due to an election spending-related boost.
Rival ABS-CBN Corp. has started to diversify revenue, with more than half already coming from consumer sales like SkyCable TV and its international business as of the first quarter of 2014. Gozon, however, was lukewarm at the moment to enter businesses very different from its traditional broadcast services.
“It’s hard to go into a new business that might lose money,” Gozon said partly in Filipino. “At the moment [new revenue] needs to be related to broadcasting.”
Gozon announced to shareholders that they were targeting a 100-percent television coverage for the entire country. A survey conducted by AGB Nielsen said coverage of urban households was at 99 percent while rural areas were at 94 percent.
GMA’s nationwide ratings, however, slipped 2 percent behind ABS-CBN, he said, while the company continued to lead in urban Luzon and Mega Manila.
The company opened originating stations in Cagayan de Oro last year. It also has similar facilities in Ilocos, Dagupan, Bicol, Iloilo, Cebu and Davao.
“The improvements we are making in the Visayas and Mindanao regions are important because it is in these areas where the ratings margins of ABS over GMA are the biggest,” Gozon told reporters during Wednesday’s interview.—Miguel R Camus
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