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Corporate Purpose BRAVERY IN UNCERTAINTY INUNCERTAINTY BRAVERY I GMANETWORK,INC.ANNUALREPORT2020 GMA NETWORK, INC. GMA Network Center EDSA corner Timog Avenue Diliman, Quezon City (632) 8982-7777 www.gmanetwork.com CORPORATE PURPOSE TABLE OF We enrich the lives of Filipinos everywhere with superior Entertainment and the responsible, CONTENTS unbiased, and timely delivery of accurate News and Information. 1 Purpose, Vision, Core Values 3 About GMA 4 Subsidiaries, Affiliates, Joint Ventures CORPORATE VISION 6 Chairman’s Message We are the most respected, undisputed leader 9 Financial Highlights in the Philippine broadcast industry 11 President’s Message and the recognized media innovator and pacesetter in Asia. 14 Operational Highlights We are the Filipinos’ favorite network. 16 Celebrating 70 Years We are the advertisers’ preferred partner. We are the employer of choice in our industry. 26 COVID-19 Response We provide the best returns to our shareholders. 38 Board of Directors We are a key partner in promoting the best in the Filipino. 44 Officers 52 Corporate Governance 56 Awards 63 Management Discussion & Analysis CORPORATE VALUES 74 Financial Statements We place God above all. 162 Directory We believe that the Viewer is Boss. We value our People as our best assets. ABOUT THE COVER We uphold Integrity and Transparency. The year 2020 was one of the most uncertain We are driven by our Passion for Excellence. periods of all time—explosive volcanic eruptions, more intense typhoons, and rapidly changing We strive for Efficiency in everything we do. technology. Then a pandemic hit the world, crippling We pursue Creativity and Innovation. even the strongest of nations and economies. Despite these, GMA Network, Inc. made brave steps forward in content production and the digital landscape. It went beyond its mission by providing trusted information, giving audiences the front row seat in history, and energizing the soul and spirit of the Filipinos in the most desperate times. ABOUT GMA . Also known as the Kapuso Network, GMA brings GMA Network, Inc. is superior Entertainment and the responsible, unbiased, and timely delivery of accurate News the Philippines’ leading and Information to Filipinos worldwide. Its flagship channel, GMA, broadcasts free-to-air broadcasting company via VHF channel 7 and its permanent digital TV signal on UHF channel 15. which produces the Based on Nielsen Philippines, GMA reached over most innovative, most 84 million Filipinos across the country with 48.3 percent people audience share in Philippine trusted, and top-rating National TV Audience Measurement (PHINTAM) for the year 2020. TV programs. Headquartered in Quezon City, GMA operates a network of 85 TV stations and 23 radio stations throughout the country. Apart from its television and radio businesses, GMA also owns a wide array of media-related entities engaged in program syndication, film production, music publishing and distribution, set design, audio-visual production, and new media. GMA Network, Inc. was officially listed on the Philippine Stock Exchange in 2007. The Network is now recognized as one of the notable organizations that promote sustainability in the country, being the first media and broadcasting company in the Philippines to sign with the United Nations (UN) Global Compact. 2 3 2020 GMA NETWORK, INC. ANNUAL REPORT 2020 GMA NETWORK, INC. ANNUAL REPORT SUBSIDIARIES JOINT VENTURES MediaMerge Corporation**** AFFILIATES Handled the business development and operations for the Network’s online publishing/ advertising initiatives Digify, Inc. (Digify)*** Responsible for the crafting, SUBSIDIARIES (100% Ownership) planning, advertising, and other forms of promotion including multimedia productions GMA Network Films, Inc. Scenarios, Inc.* Produces movies catering to both Handled design, construction local and international markets. and maintenance of sets for JOINT VENTURES (50% Ownership) Its productions have reaped both TV, stage plays and concerts, critical acclaim and commercial transportation services success, foremost among them is the Philippine Centennial offering INQ7 Interactive, Inc.* Jose Rizal and Muro Ami. GMA Worldwide (Philippines), Inc.**** Internet publishing Dedicated to the syndication and distribution of GMA’s RGMA Marketing and Philippine Entertainment drama and entertainment Productions, Inc. (GMA Music) Portal, Inc. (PEP)*** programs worldwide Engaged in the publishing, Internet publishing licensing, production, and distribution of music. It is a GMA Marketing & member of the Philippine Productions, Inc. (GMPI)* AFFILIATES (49% Ownership) Association of the Record Industry Exclusive marketing and and has the distinction of having sales arm of GMA’s airtime, two diamond record awards in the events management, sales highly competitive music scene. implementation, traffic services Mont-Aire Realty and and monitoring Development Corp. Real estate Alta Productions Group, Inc. Provides a complete spectrum Citynet Network Marketing RGMA Network, Inc. of production requirements from and Productions, Inc. conceptualization, creatives, shoot, Involved in television Radio broadcasting post-production, to execution for entertainment production and management its local and international clients GMA New Media, Inc. Script2010, Inc. (Script2010)** The Network’s digital media and Engaged in the design, technology arm. Since its inception construction and maintenance in 2000, it has launched category- Notes: breaking projects on the web, * Not operational of sets for TV, stage plays and ** Indirectly owned through Citynet concerts, transportation, and mobile, digital television, and other Network Marketing and Productions, Inc. new and emerging platforms. *** Indirectly owned through GMA New Media, Inc. manpower services **** Ceased commercial operation in 2020 4 5 2020 GMA NETWORK, INC. ANNUAL REPORT 2020 GMA NETWORK, INC. ANNUAL REPORT The media industry underwent a difficult time in across the Network. You may read more about these 2020. Aside from the competition for audiences efforts in the COVID-19 Response section of this and advertisers, several other forces hit us swiftly annual report. and severely. The biggest of which was COVID-19. The pandemic-induced lockdowns meant We see courage and bravery running through every suspended productions, cancelled concerts, and segment of our operations. Knowing that information great risk for our employees. We asked ourselves - is a national and critical need, our News and Public how do we deal with this invisible danger? How do Affairs pivoted its programming and production. On we navigate uncertainty? television, GMA and GTV (formerly GMA News TV) devoted a combined average of 18 hours daily in Our answer is—with courage and bravery. 2020 for various news and public affairs programs. We quickly created digital programs and exclusive In the face of great crisis, every Kapuso responded online content that helped the audience understand with tenacity, agility, and bravery. I salute our issues. These programs were produced from home journalists who fearlessly reported from the using a cloud-based set up and the reception was frontlines, our technical teams who worked on field extraordinary. They sparked conversations and to ensure our signal strength and connectivity, and mobilized action within communities. our people working from the office and their homes who were critical in supporting our key business Our Entertainment Group launched programs that operations. They are the heart of our Network and activated creativity. One of these programs was a their safety is our priority. We made work from new drama anthology which honored our frontliners. home options possible while enhancing safety This series was lauded for its unique storytelling, measures for those on the frontlines. As live shows beautiful direction, and acting. We were also the were cancelled, we devoted our energy to creative first to stage a virtual reality concert, development, upskilling our employees and artists , to give our audience the best entertainment experience from home. Bravery is in our DNA. Since 1950, GMA has been a Network known for its relentless pursuit of truth and public service. 6 7 2020 GMA NETWORK, INC. ANNUAL REPORT 2020 GMA NETWORK, INC. ANNUAL REPORT In 2020, we fortified our digital terrestrial television With your support, our employees’ hard work, and (DTT) with the launch of our DTT channels Heart of our audiences’ warm reception, we did not just Asia and Hallypop and our high-quality and affordable survive 2020, we thrived. set-top box, the GMA Affordabox. Despite the pandemic, we sold almost 1 million Affordabox units We broke all records in terms of financial performance in only six months last year. Completing this year’s in 2020. Net income reached a milestone at P6.007 remarkable digital achievement was the commercial billion, soaring 128% or P3.368 billion from last year’s introduction of GMA Now, a dongle for Android bottom line of P2.639 billion. smartphones that allows viewers to enjoy digital free-to-air channels on the go. In 2020, we reached over 84 million Filipinos across the country. From January to May 5, we were already On digital platforms, GMA News was the most ahead of ABS-CBN in reach and viewership before viewed news media organization in the Philippines the latter went off the air in May. Our flagship stations on both YouTube and Facebook. At the height of Super Radyo DZBB and Barangay LS 97.1 were both the Luzon lockdown in May, it ranked fifth in the Number 1 in their categories.
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