IPO proceeds of GMA-7 spent according to plan

MANILA, Philippines - Proceeds of GMA Network Inc.’s initial share sale was spent according to plan, records submitted by the company to the Philippine Stock Exchange (PSE) indicated. Of the P1.538 billion it raised during its initial public offering (IPO) two years ago, the company already spent P1.338 billion as of end-June this year, the same documents indicated. The latter figure comprises roughly 85 percent of its share sale proceeds. As of June 30 this year, the Philippines’ leading network has already spent P373 million for the construction of two new television studios and P195 million to strengthen and upgrade its signals. Besides complying with the company’s original spending plan, these capital expenditures also form part of its strategy to erase the nationwide lead of its rival ABS-CBN Broadcasting Corp. GMA Network Inc., a close second to ABS-CBN’s nationwide lead of just one percent, said it will defeat its rival by moving faster to upgrade its broadcast signals, Felipe L. Gozon Jr., the company’s chairman, president, and chief executive officer said earlier. “Our priority in 2009 is achieve superiority in ratings over our nearest competitor not only in Mega Manila and in Luzon but also nationwide. Our initiative to improve our reach and signal in the regions will remain unabated," Gozon said in a general assembly attended by employees in May. Some P72.56 million will be spent for the upgrade of its facilities in three provinces, Gozon said. Nineteen and a half million pesos will be allotted for tower reinforcement and a replacement of a new antenna for TV5 Davao and P28.5 million for the new five kiloWatt (kW) UHF TV relay station in Jala-Jala, Rizal to “augment" its signal in Laguna using Channel 25. Shares of GMA Network Inc. rose ten centavos to P6.30 apiece during Friday’s trading at the PSE. GMA Network Inc. indirectly owns Media Merge Corp., the company that runs GMANews.TV, through its online subsidiary GMA New Media Inc. - RJA Basilio Jr., GMANews.TV