Bold Maneuvers, Meeting Challenges (The CEO's 2013 Report) | GMANetwork.com - Corporate - Articles

The full statement of GMA Chairman and Chief Executive Officer Felipe L. Gozon at the annual stockholders' meeting.

Bold Maneuvers, Meeting Challenges (The CEO's 2013 Report)

May 22 2014


BOLD MANEUVERS, MEETING CHALLENGES
THE CEO’S 2013 REPORT
ANNUAL STOCKHOLDERS’ MEETING
21 MAY 2014

 
CUSTOMARY GREETINGS:
FELLOW DIRECTORS, OFFICERS, EMPLOYEES AND SHAREHOLDERS OF GMA NETWORK, GUESTS, 
 
LADIES AND GENTLEMEN, MAGANDANG UMAGA SA INYONG LAHAT, MGA KAPUSO!
 
AS YOU ALL KNOW BY NOW, THE FUTURE OF THE BROADCAST INDUSTRY WILL BE SHAPED BY ALL THE TECHNOLOGICAL ADVANCEMENTS HAPPENING AT A VERY FAST PACE. FORTUNATELY FOR US, WE HAVE LONG EMBRACED THE INDUSTRY’S RAPID REVOLUTION, CONSTANTLY MAKING SURE THAT WE ARE UP TO SPEED WITH THE DEVELOPMENTS. WHILE CONTENT REMAINS AS THE KING, THE CHALLENGE IS INCREASINGLY SHIFTING TO HOW WE DELIVER QUALITY CONTENT ACROSS A WIDE ARRAY OF AVAILABLE PLATFORMS.
 
THE FOCUS NOW IS SERVING THE DIVERSE NEEDS OF OUR AUDIENCES BY PROVIDING PRODUCTS AND SERVICES THAT ARE TAILOR-FIT TO THEIR UNIQUE LIFESTYLES AND WANTS. 

INDEED, IT IS TOUGH TO SYNERGIZE DIVERSITY WITH UNIQUENESS BUT THAT IS WHAT THE BROADCAST LANDSCAPE REQUIRES US TO DO NOW, AND, I BELIEVE MORE SO IN THE FUTURE.
 
WE PROVIDED TO OUR VIEWERS A HEALTHY BALANCE OF OUT-OF-THE BOX STORYLINES FOR ENTERTAINMENT AND CREDIBLE AND RELEVANT NEWS AND PUBLIC AFFAIRS PROGRAMMING. 
 
THE DARING TELESERYE, MY HUSBAND’S LOVER, MADE A MARK IN OUR LOCAL TV HISTORY BY TACKLING THE ERSTWHILE TABOO TOPIC OF HOMOSEXUALITY. WE EVEN PARLAYED THIS SUCCESS INTO A CONCERT HEADLINED BY THE TELESERYE’S MAIN STARS AND A SERIES OF MEET AND GREET TOURS BOTH HERE AND ABROAD.

WE STAMPED OUR TWIN SIGNATURES OF CREDIBILITY AND COMPREHENSIVENESS ON OUR COVERAGE OF THE MID-TERM ELECTIONS, RESULTING IN A RESOUNDING APPROVAL FROM OUR AUDIENCE, AS EVIDENCED BY THE RATINGS.
 
BECAUSE OF THE OMNIPRESENCE OF TECHNOLOGY, COMPETITION IN THE BROADCAST ARENA IS NOW 24/7. ANG KOMPETISYON, KATULAD NG BALITA, AY HINDI NATUTULOG. KUNG KAYA’T ANG BATTLE CRY NATIN DITO SA ATING NETWORK NGAYON AY “WALANG TULUGAN” AT “NAKATUTOK KAMI, 24 ORAS.”
 
OUR FOCUS REMAINED TWO-FOLD:
 
1) TO CONSTANTLY DEVELOP PROGRAMS THAT WOULD DELIGHT BOTH OUR LOCAL AND INTERNATIONAL VIEWERS; AND,
 
2) TO CONTINUE THE EXPANSION AND IMPROVEMENT OF OUR SIGNAL AND REACH IN THE ARCHIPELAGO AND THE DELIVERY OF OUR PROGRAMS TO MARKETS ABROAD.
 
TV RATINGS
 
FIRST, A QUICK GLANCE AT OUR RATINGS PERFORMANCE.
 
IN 2013, WE LOST OUR LEAD IN NATIONWIDE TV RATINGS, AFTER BEING AHEAD FOR TWO CONSECUTIVE YEARS. GMA’S 2013 NATIONWIDE AVERAGE AUDIENCE SHARE WAS BEHIND BY 2 PERCENT VERSUS ABS-CBN’S AVERAGE.
 
HOWEVER, WE MAINTAINED OUR EDGE IN OUR TRADITIONALLY STRONG AREAS OF LUZON AND MEGA MANILA. GMA’S 2013 AUDIENCE SHARE LEAD OVER ABS-CBN STOOD AT 8 PERCENT IN MEGA MANILA.

LAST YEAR, MEGA MANILA ACCOUNTED FOR 58.8 PERCENT OF TOTAL URBAN TV HOUSEHOLDS. OUR LEAD OVER ABS-CBN IN URBAN LUZON STOOD AT 5 PERCENT. URBAN LUZON ACCOUNTED FOR 76.4 PERCENT OF TOTAL URBAN TV HOUSEHOLDS IN 2013.
 
MEANWHILE, OUR OTHER FREE TV CHANNEL, GMA NEWS TV, REMAINED THE LEADING NEWS CHANNEL IN THE COUNTRY, RANKING FOURTH OVERALL.
 
OUR RADIO STATIONS DZBB-AM AND DWLS-FM REMAINED NUMBER 2 IN MEGA MANILA IN THEIR RESPECTIVE CATEGORIES.
 
SHOULD YOU NEED MORE DETAILS ABOUT OUR RATINGS PERFORMANCE, OUR FIRST VICE PRESIDENT FOR RESEARCH, MS. SHEILA TAN, IS HERE TO ADDRESS YOUR QUESTIONS LATER.
 
FINANCIALS
 
LET US DISCUSS OUR FINANCIALS…
 
DESPITE A FEW SETBACKS THAT CAME OUR WAY, WE WERE ABLE TO ACHIEVE MODEST GAINS IN OUR TOP AND BOTTOM LINES IN 2013.
 
1. GMA NETWORK’S CONSOLIDATED GROSS REVENUES SETTLED AT 12.95 BILLION PESOS – A 7 PERCENT INCREASE OVER OUR 2012 NUMBERS.
 
2. EBITDA IMPROVED BY 9 PERCENT OR 297 MILLION PESOS OVER 2012, CLOSING AT 3.7 BILLION PESOS.
 
3. TOTAL OPERATING EXPENSES WENT UP BY 8 PERCENT TO 10.57 BILLION PESOS, DUE TO HIGHER PRODUCTION COST.
 
4. CONSOLIDATED NET INCOME IN 2013 WAS AT 1.67 BILLION PESOS, UP BY 3 PERCENT VERSUS 2012.
 
OUR SENIOR VICE PRESIDENT FOR FINANCE AND ICT, MR. RONNIE MASTRILI, WILL SHARE AN ANALYSIS OF OUR FINANCIAL PERFORMANCE VIS-À-VIS OUR COMPETITOR LATER.
 
EXPANSION
 
IN THE AREA OF EXPANSION…
 
TARGETING A 100 PERCENT TV COVERAGE OF THE ENTIRE PHILIPPINE ARCHIPELAGO NECESSITATES UNCOMPROMISED SIGNAL CLARITY AND EXTENSIVE REACH. ACCORDING TO THE 2013 AGB NIELSEN TOTAL PHILIPPINE ESTABLISHMENT SURVEY, OUR COVERAGE OF THE COUNTRY’S URBAN TV HOUSEHOLDS STANDS AT 99 PERCENT, WHILE IN THE RURAL AREAS, IT IS 94 PERCENT.
 
IN 2013, WE OPENED OUR ORIGINATING STATION IN CAGAYAN DE ORO, TO SERVICE NORTHERN MINDANAO. APART FROM CDO, WE HAVE ORIGINATING STATIONS CAPABLE OF BROADCASTING THEIR OWN LOCAL CONTENT IN ILOCOS, DAGUPAN, BICOL, ILOILO, CEBU AND DAVAO.
 
SEVERAL TRANSMISSION UPGRADE PROJECTS WERE COMPLETED DURING THE YEAR AND TODAY, GMA NETWORK BROADCASTS LOUD AND CLEAR IN PUERTO PRINCESA, SORSOGON, MOUNTAIN PROVINCE, ROMBLON, ILOCOS NORTE AND PAGADIAN CITY.
 
OTHER UPGRADES THAT ARE AIMED AT IMPROVING OUR SIGNAL AND EXPANDING OUR REACH IN OTHER AREAS CONTINUE.
 
THE IMPROVEMENTS WE ARE MAKING IN THE VISAYAN AND MINDANAO REGIONS ARE IMPORTANT BECAUSE IT IS IN THESE AREAS WHERE THE RATINGS MARGINS OF ABS OVER GMA ARE THE BIGGEST.
 
OTHER BUSINESS UNITS
 
MORE GOOD NEWS FROM OUR OTHER BUSINESS UNITS…
 
OF OUR OTHER BUSINESSES, THE REVENUE GAINERS IN 2013 INCLUDED THE FOLLOWING:
 

-GMA NEWS TV, WITH A 34 PERCENT INCREASE; 

-RADIO, WITH AN 11 PERCENT GAIN;

-REGIONAL TV, WITH A 27 PERCENT HIKE; AND,

-OUR INTERNATIONAL BUSINESS, WITH A 2 PERCENT GROWTH,
BOTH IN PESO AND DOLLAR TERMS, NOTWITHSTANDING THE DECREASE IN SUBSCRIBERS BROUGHT ABOUT BY OUR CHANGE OF CARRIER IN THE MIDDLE EAST. OUR SHIFT IN CARRIER IN THE MIDDLE EAST WAS A NECESSARY STEP TO YIELD BETTER RESULTS FOR OUR BUSINESS IN THE LONGER TERM.
 
SUBSIDIARIES
 
MOVING ON TO OUR SUBSIDIARIES . . .
 
OVERALL, THE REVENUES OF GMA’S SUBSIDIARIES WENT DOWN BY 1 PERCENT IN 2013 VERSUS 2012. THE MAIN DRAG CAME FROM THE DROP IN REVENUES OF OUR GMA FILMS, WITH ONLY ONE MOVIE IN 2013.
 
GMA WORLDWIDE, OUR SYNDICATION ARM, ENDED 2013 WITH TOTAL SALES OF 1.5 MILLION DOLLARS, UP 27 PERCENT OVER 2012, SELLING PROGRAM AND MOVIE TITLES TO VARIOUS COUNTRIES.

OUR GROWING SUCCESS IN BRINGING GMA PROGRAMS TO SOUTHEAST ASIA HAS RESULTED IN THE INCREASING POPULARITY OF OUR HOME-GROWN ARTISTS SUCH AS MARIAN RIVERA, DENNIS TRILLO, DINGDONG DANTES AND OTHERS IN THESE NEIGHBORING COUNTRIES. 
 
CUMULATIVE 2013 REVENUES OF ALTA PRODUCTIONS STOOD AT 50.5 MILLION PESOS, UP BY 3 PERCENT VERSUS 2012. LIKE IN THE PAST, AUDIO DUBBING SERVICES WERE THE PRIMARY CONTRIBUTOR TO THESE REVENUES.
 
REVENUES FOR SCRIPT2010 ENDED AT 130.9 MILLION PESOS, SLIGHTLY UP VERSUS ITS 2012 NUMBERS.
 
MEANWHILE, THE ALBUM OF JULIE ANNE SAN JOSE RELEASED BY GMA RECORDS RECEIVED AN EIGHT-TIME PLATINUM RECORD AWARD IN 2013.
 
FINALLY, OUR GMA NEW MEDIA CONTINUED TO DESIGN AND DEVELOP PORTALS AND OTHER ONLINE AND MOBILE APPLICATIONS FOR OUR VARIOUS PROGRAMS AND PROJECTS.

AMONG THE NOTABLE PROJECTS COMPLETED IN 2013 WAS THE “I M READY” PORTAL WHICH IS A ONE-STOP PORTAL FOR PUBLIC SAFETY INFORMATION, INCLUDING TRAFFIC AS WELL AS DISASTER AWARENESS AND PREPAREDNESS.

THE “I M READY” APP IS NOW AVAILABLE FOR DOWNLOADING IN THE APP STORE FOR THOSE USING I-PHONES AND THE PLAY STORE FOR ANDROID.
 
CONCLUSION
 
BECAUSE THE BROADCAST INDUSTRY IS SO DYNAMIC, WE CAN EXPECT THE CURRENT YEAR TO BE MORE CHALLENGING THAN THE PREVIOUS ONE.
 
WITH THE RECENT DECISION TO ADOPT THE JAPANESE STANDARD IN DIGITAL TV TRANSMISSION, THE ADVENT OF DIGITIZATION IN OUR COUNTRY MAY BE JUST AROUND THE CORNER. THE GOOD NEWS IS THAT WE HAVE LONG BEEN PREPARING FOR THIS EVENTUALITY, SO, MUCH LIKE THE “I M READY” PORTAL, WE ARE READY FOR THE DIGITIZATION OF BROADCAST MEDIA.

WE ARE IN THE PROCESS OF EXPLORING BUSINESS MODELS TO MAXIMIZE BOTH THE TECHNOLOGICAL AND ECONOMIC POTENTIALS OF THE DIGITIZATION OF OUR BROADCASTING SERVICES.
 
OUR STOCKHOLDERS CAN BE CONFIDENT THAT YOUR NETWORK WILL NOT LAG BEHIND THESE TECHNOLOGICAL DEVELOPMENTS AS WE CONTINUE TO BUILD OUR BRAND WITH STRONG VALUES, PRINCIPLES AND PURPOSE.
 
WE WILL CONTINUE TO MOVE FORWARD AND CONFIDENTLY MEET CHALLENGES HEAD-ON WITH THE HELP OF OUR EMPLOYEES AND TALENTS, WHO ARE THE INDUSTRY’S BEST. WE BELIEVE AND EXPECT THAT OUR BUSINESS WILL CONTINUE TO GROW AND ACHIEVE NEW MILESTONES IN THE COMING YEARS.
 
LASTLY, THANK YOU, DEAR STOCKHOLDERS, FOR YOUR UNWAVERING TRUST AND SUPPORT. 
 
TO OUR DIRECTORS, OFFICERS, EMPLOYEES AND TALENTS, THANK YOU FOR YOUR VALUABLE CONTRIBUTIONS AND ASSISTANCE.
 
MARAMING SALAMAT AT MAGANDANG UMAGA, MGA KAPUSO.

advertisement

Elsewhere on GMA

advertisement

GMA Network Chairman Atty. Felipe L. Gozon Honored with Lifetime Achievement Award by Katiwasayan Para Sa Mamamayan (KASAMA, Inc.)

Nov 17, 2025
GMA Network Chairman Atty Felipe L Gozon fourth from left

GMA Network Chairman Atty. Felipe L. Gozon was bestowed the Lifetime Achievement Award by the Katiwasayan Para sa Mamamayan (KASAMA, Inc.). Read more

GMA Network and Cut Unlimited, Inc.: Celebrating 25 Years of Giving and Lasting Partnership

Sep 26, 2025
Noel Bazaar proponents

Anchored in generosity, community, and the spirit of Christmas, the collaboration has flourished for 25 years through the metro’s longest-running holiday shopping fair, the annual Noel Bazaar.  Read more

GMA Network Welcomes Visual Magic Company, Inc. Executives During Courtesy Visit

Sep 18, 2025
GMA Network x Visual Magic Company Inc

GMA Network received top executives from Visual Magic Company, Inc. during a courtesy visit held at the GMA Network Center on September 17. Read more

GMA Network Employees Join COMELEC Special Voter Registration Drive

Aug 8, 2025
Special Register Anywhere Program

GMA Network held a special voter registration for its employees, subsidiaries, staff, and family members on Wednesday at the GMA Network Center in Quezon City. Read more

GMA Network Posts 2.0 Billion Net Income After Tax in H1 2025

Jul 30, 2025
gma network

GMA Network, the country’s leading broadcast company, delivered strong financial results in the first half of 2025, with net income after tax surging more than threefold year-on-year to P2.0 billion. Read more

Ambassador of Israel to the Philippines Pays Courtesy Call to GMA Network

Jul 10, 2025
Ambassador of Israel to the Philippines Pays Courtesy Call to GMA Network

His Excellency Ilan Fluss, the Ambassador of the State of Israel to the Philippines, made a courtesy visit to GMA Network, on July 10. He was received by President and CEO Gilberto R. Duavit, Jr. at the GMA Network Center in Quezon City.  Read more

GMA Integrated News Wins Silver, Finalist Honors at Prestigious U.S. International Awards

Jun 27, 2025
GMA Integrated News

GMA Integrated News continues to raise the bar in journalism excellence as it brings honor to the Philippines anew at the prestigious 2025 U.S. International Awards. Read more

GMA Network receives the Palestinian Ambassador to the Philippines during a courtesy call on June 24

Jun 25, 2025
Palestinian Ambassador with GMA Executives

On June 24, GMA Network received the Palestinian Ambassador to the Philippines during a courtesy call.  Read more

GMA Network Reinforces Leadership in Philippine Broadcast and Digital Media

May 21, 2025
gma network

Speaking at the GMA Network Annual Stockholders' Meeting held virtually on Wednesday, May 21, President and CEO Gilberto R. Duavit, Jr. highlighted the Network's robust performance despite challenging economic conditions. Read more

GMA Network Declares 2.4B Cash Dividends, Reflecting Confidence in 2025 Outlook

Apr 30, 2025
gma network

GMA Network, Inc. announced that its Board of Directors has recently approved the declaration of ?2.4 billion in total cash dividends, equivalent to ?0.50 per share. Read more

GMA Network and DTI Partner to Bring Filipino Content to the Global Stage

Apr 4, 2025
GMA Network and DTI

Leading media company GMA Network and the Department of Trade and Industry (DTI) came together on March 31 to explore a collaboration that aims to expand the global distribution of Filipino content.  Read more

Presidential Communications Office Secretary Jay Ruiz Pays Courtesy Call to GMA Network

Mar 25, 2025
Presidential Communications Office Secretary Jay Ruiz

The courtesy call is part of the PCO’s initiatives to strengthen its advocacy against fake news. Read more

GMA Network Chairman Atty. Felipe L. Gozon Named IABC Communicator of the Year

Mar 18, 2025
GMA Network Chairman Atty Felipe L Gozon

GMA Network Chairman Atty. Felipe L. Gozon was recently awarded Communicator of the Year (COTY) in the Executive Leader category by the International Association of Business Communicators (IABC) Asia Pacific. Read more

GMA Network Named as Top Employer in Media and Communications

Feb 27, 2025
gma network inc

GMA Network continues to strengthen its position as a broadcast media company that builds not just careers but also the future of Philippine media.  Read more

Atty. Felipe L. Gozon and GMA Network Personalities Honored at the MOPC Grand Journalism Awards

Feb 13, 2025
GMA executives and news personalities

GMA Network Chairman Atty. Felipe L. Gozon, along with three of the Network's esteemed journalists—Jessica Soho, Raffy Tima, and Melo del Prado— were recognized for their excellence, innovative contributions, and impact on journalism at the Manila Overseas Press Club (MOPC) Grand Journalism Awards on February 12. Read more

advertisement

GMA Network Personalities Honored by Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc.

Jan 31, 2025
GMA Network Personalities

GMA Network artists and personalities were honored with the Most Outstanding Achievement award by FFCCCII on January 29. Read more

GMA Network Appoints Nessa Valdellon as Senior Vice President for Public Affairs

Jan 17, 2025
Nessa Valdellon

Effective January 15, 2025, Ms. Nessa Valdellon is GMA Network's new Senior Vice President for Public Affairs. Read more

2024 Volume 4 Kapuso Magazine

Dec 27, 2024
2024 Volume 4 Kapuso Magazine

Ganito ang Pasko ng Pilipino, puno ng pasasalamat! As we approach the end of the Christmas season, we embrace it with heartfelt gratitude. GMA's Christmas Station ID banners the latest Kapuso Magazine. This edition features new programs like Heart World and Forever Young. It also features contract signings of our beloved Kapuso personalities such as Arnold Clavio and Kim Atienza. Kapuso Abroad highlights Fil-American History Month while RTV highlights stellar festivities with Kapuso artists.  The Kapuso Magazine is also filled with CSR initiatives such as Art Gap Gives Back, coastal cleanup and tree planting with Nestle. Read more

Israel Ambassador pays courtesy call to GMA Network President and CEO Gilberto R. Duavit, Jr. 

Oct 23, 2024
Gilberto R Duavit Jr and Ilan Fluss

Israel Ambassador to the Philippines Ilan Fluss paid a courtesy call to GMA Network President and CEO Gilberto R. Duavit on October 22 at the Kapuso Network's headquarters in Quezon City. Read more

GMA Network Partners with IPOPHL for 2nd Philippine International Copyright Summit (PICS) 

Oct 17, 2024
gma network

With the theme "Unlocking the Future: Tech Trends and Challenges in Copyright," the event aims to provide participants with insights on Copyright-Based Industries (CBIs), as well as copyright laws covering literary works, the performing arts, Artificial Intelligence (AI), and other related topics. Read more

GMA Ventures, Inc. and TNB Aura Partner with Hofer Development Corporation

Sep 30, 2024
Regie Bautista David Bonifacio Jefferson Hofer

GMA Network through its investment and diversification arm GMA Ventures, Inc., (GVI), and Singapore-based venture capital company TNB Aura, signed a partnership agreement with Hofer Development Company (HDC).  Read more

GMA Network's Nessa Valdellon Returns to Asian Academy Creative Awards Jury

Sep 4, 2024
Nessa Valdellon

Nessa Valdellon, GMA Network’s First Vice President for GMA Public Affairs and Executive Vice President for GMA Pictures, joins the elite jury panel of the Asian Academy Creative Awards. This marks the fourth year Valdellon has served as an Asian Academy juror.  Read more

GMA Network's SVP Lilybeth G. Rasonable to Speak at ContentAsia Summit

Aug 29, 2024
Lilybeth G Rasonable

Lilybeth G. Rasonable, GMA Network's Senior Vice President for Entertainment Group, will be among the speakers at the ContentAsia Summit 2024  on September 4 in Taipei, Taiwan.  Read more

2024 Volume 3 Kapuso Magazine

Jul 29, 2024
2024 Volume 3 Kapuso Magazine

#IsaSaPusoNgPilipino GMA Kapuso Magazine banners the Network's new anthem, Isa sa Puso ng Pilipino. This edition features the television premiere of Pulang Araw, debuting tonight on GMA-7. After its stellar launch on Netflix Philippines, where it claimed the top spot as the No. 1 TV show in the country, Pulang Araw will air back-to-back with Widows' War, crafting a primetime experience like no other.  Kapuso Abroad highlights GMA's milestone expansion with YouTube TV and iWantTFC while GMA RTV & Synergy highlights the NCAA cheer dance competition and the Julie x Stell concert, Ang Ating Tinig. We spotlight the network’s CSR initiatives through the GMA Kapuso Foundation, GMA Speakers’ Bureau, and GMA G.I.V.E.S. employee volunteers. This edition also gives a tribute to Kapuso journalist Chino Trinidad, a beloved figure on GMA Sports. Read more

Japan Ambassador pays courtesy call on GMA Network

Jul 15, 2024
Japan Ambassador Endo Kazuya vistis GMA

“I am deeply grateful to step on the grounds of the largest media network in the Philippines. It is an honor to be here at GMA, a true beacon of culture and storytelling.” -  Ambassador Endo Kazuya Read more