Instead of paying back around P18.75 million in advances, the amount was converted into equity or ownership, essentially clearing the obligations of GMA Network Films, which is also known as GMA Pictures.
Big picture
“The increase in the paid-up capital of GNFI is aligned with its current and forthcoming project requirements, as the company aggressively returns to film production after several years of hiatus,” GMA Network said in a stock exchange filing on Thursday.
GMA is betting on a resurgent film industry to drive growth amid the industrywide ad revenue slowdown. ABS-CBN has also pointed to bright prospects in the film industry, thanks to its recent hit movies.
Past successes
GMA Network Films was a major producer of movies for both local and international markets, its recent financial report showed.
“Its productions have reaped both critical acclaim and commercial success, foremost among them the Philippine Centennial offering Jose Rizal in 1998 followed by Muro Ami in 1999. These legacy films scored back-to-back wins for Best Picture at the Metro Manila Film Festival,” the company said.
It continued to produce movies until the early to mid-2000s, but there was no further mention afterward, suggesting a gap in production.
It launched new titles catering to a younger audience such as The Cheating Game, Video City (co-produced with Viva Films), and Five Breakups and a Romance (co-produced with Cornerstone Studios and Myriad).
“In the same year, GMA Pictures cemented its comeback with the hit movie Firefly, which won back-to-back Best Picture awards at the MMFF and the first Manila International Film Festival in Los Angeles,” the company said.
“GMA Pictures’ triumphant launch demonstrates its vision of achieving box office success whilst creating new cinema classics,” it added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.