SM Development Corporation (SMDC) launched its latest residential condominium project, the Princeton Residences, during ceremonies held at The Podium in Mandaluyong City on 25 November 2009. The Princeton Residences will be constructed in a lot located along Aurora Boulevard in Quezon City, right beside the Gilmore station of the LRT (light railway transit) Line-2.
Roger R. Cabuñag, SMDC president said, “It is with pride and delight that we introduce to the public our newest project, the Princeton Residences. It will be our fourth residential condominium project in Quezon City, after Mezza Residences in front of SM City Sta. Mesa, Berkeley Residences along Katipunan Avenue, and the Grass Residences beside SM City North EDSA. The Princeton Residences is ideally located in a school zone along Aurora Boulevard, which is a major thoroughfare, and provides added convenience from its proximity to an LRT station. As with our other projects, the Princeton Residences offer five-star homes in a prime location, but at affordable prices.”
The whole Princeton Residences project will sit on approximately 2,403 square meters (sqm) of land, with the condominium building occupying roughly 1,354 sqm. It will have 41 floors, offering one- and two-bedroom units. It is estimated to have a total of 1,095 units for sale.
The Princeton Residences’ planned amenities include a grand main lobby, a lobby lounge, function room, three swimming pools, a poolside cabana, children’s play area, and a roof deck clubhouse, among others.
In addition to the Princeton Residences, SMDC’s other on-going projects are Chateau Elysee in Paranaque City, Mezza Residences across SM City Sta. Mesa, the Berkeley Residences along Katipunan Avenue in Quezon City, the Grass Residences beside SM City North EDSA, the Field Residences in Parañaque City, the Sea Residences near the Mall of Asia Complex in Pasay City, and the residential subdivision Lindenwood Residences in Muntinlupa City.
SMDC is set to launch four more residential condominium projects within the year.
Source: PSE Disclosure 26 November 2009. Pasay City, Philippines.
Thursday, December 3, 2009
Sumitomo partners with PSBank for PhP2-billion motorcycle financing firm
Sumitomo Corporation, one of the world’s leading trading and investment companies, has partnered with Philippine Savings Bank (PSBank), a member of the Metrobank Group, to form a PhP2-billion motorcycle financing company.
Sumisho Motor Finance Corporation will provide financing for all motorcycle brands at easy-to-acquire terms. It has already secured regulatory approvals from the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission (SEC) to start operations in Metro Manila in the first quarter of 2010.
The motorcycle financing company aims to tap into a niche market to provide a great number of Filipinos with an affordable means of transportation that will spur mobility and development throughout the country.
'We are pleased to have an opportunity to partner with Sumitomo in this pioneering effort to extend financing to motorcycle buyers,' PSBank Chairman Jose Pardo said. 'We deem this investment made during these challenging economic times as a vote of confidence for the country.'
Sumisho Motor Finance Corporation is considered a landmark venture as PSBank will be the first savings bank in the country to partner with Sumitomo.
Sumitomo is a global, integrated trading and investment company with a wide and diverse range of business interests. Sumitomo counts Japan, Asia, the Americas,Europe, and China among its major profit areas and has a network of global partners, offices, and subsidiaries. Its audited consolidated financial statements for the fiscal year 2009 indicate total assets of JPY 7,018 billion (USD 70.9 billion) and a net income of JPY 215 billion (USD 2.2 billion).
In Asia, Sumitomo has invested in companies in China, Taiwan, Korea, Thailand, Singapore, Malaysia, the Philippines, Indonesia, Vietnam, and India. It has established considerable experience in motorcycle and vehicle leasing and financing through its finance companies in Indonesia and Thailand.
PSBank is one of the largest thrift banks in the Philippines with a capital base of PhP10.94 billion and assets of PhP90 billion as of end-September 2009. It currently has a network of 170 branches and 301 ATMs nationwide. PSBank offers deposit and loan products that are geared towards the consumer and SME markets.
Sumisho Motor Finance Corporation was launched in an event dubbed 'The Ride of Your Life' at The Peninsula Manila in Makati City. It was attended by Metrobank Group Chairman George S.K. Ty, Metrobank Chairman Antonio Abacan Jr., PSBank Chairman Jose Pardo, PSBank President Pascual M. Garcia III and Sumitomo Corporation EVP Kazuo Ohmori.
Also present were Metrobank President Arthur Ty, Sumitomo Corporation Automotive Division GM Masao Tabuchi, Sumitomo Corporation of the Philippines President Hisashi Chujo, Japanese Ambassador Makoto Katsura, and SEC Chairperson Fe Barin.
source: PSE Disclosure Dec 3, 2009
Sumisho Motor Finance Corporation will provide financing for all motorcycle brands at easy-to-acquire terms. It has already secured regulatory approvals from the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission (SEC) to start operations in Metro Manila in the first quarter of 2010.
The motorcycle financing company aims to tap into a niche market to provide a great number of Filipinos with an affordable means of transportation that will spur mobility and development throughout the country.
'We are pleased to have an opportunity to partner with Sumitomo in this pioneering effort to extend financing to motorcycle buyers,' PSBank Chairman Jose Pardo said. 'We deem this investment made during these challenging economic times as a vote of confidence for the country.'
Sumisho Motor Finance Corporation is considered a landmark venture as PSBank will be the first savings bank in the country to partner with Sumitomo.
Sumitomo is a global, integrated trading and investment company with a wide and diverse range of business interests. Sumitomo counts Japan, Asia, the Americas,Europe, and China among its major profit areas and has a network of global partners, offices, and subsidiaries. Its audited consolidated financial statements for the fiscal year 2009 indicate total assets of JPY 7,018 billion (USD 70.9 billion) and a net income of JPY 215 billion (USD 2.2 billion).
In Asia, Sumitomo has invested in companies in China, Taiwan, Korea, Thailand, Singapore, Malaysia, the Philippines, Indonesia, Vietnam, and India. It has established considerable experience in motorcycle and vehicle leasing and financing through its finance companies in Indonesia and Thailand.
PSBank is one of the largest thrift banks in the Philippines with a capital base of PhP10.94 billion and assets of PhP90 billion as of end-September 2009. It currently has a network of 170 branches and 301 ATMs nationwide. PSBank offers deposit and loan products that are geared towards the consumer and SME markets.
Sumisho Motor Finance Corporation was launched in an event dubbed 'The Ride of Your Life' at The Peninsula Manila in Makati City. It was attended by Metrobank Group Chairman George S.K. Ty, Metrobank Chairman Antonio Abacan Jr., PSBank Chairman Jose Pardo, PSBank President Pascual M. Garcia III and Sumitomo Corporation EVP Kazuo Ohmori.
Also present were Metrobank President Arthur Ty, Sumitomo Corporation Automotive Division GM Masao Tabuchi, Sumitomo Corporation of the Philippines President Hisashi Chujo, Japanese Ambassador Makoto Katsura, and SEC Chairperson Fe Barin.
source: PSE Disclosure Dec 3, 2009
Sunday, November 8, 2009
MPIC SECURES AGREEMENT WITH FIRST HOLDINGS FOR HALF OF ITS 13.4 STAKE IN MERALCO
MANILA, Philippines, 05th November 2009
Metro Pacific Investments Corporation (“MPIC”, PSE: MPI) today reported that the Board of Directors in its regular meeting held today, approved
the Term Sheet between MPIC and First Philippine Holdings Corporation ("First Holdings"), in relation to, amongst other things:
The Php 11.2 billion Loan
MPIC shall provide a loan in the amount of approximately PhP11.2 billion, to be evidenced by a promissory note ("Note"), to First Holdings or its designated wholly owned subsidiary. It is anticipated that the Loan will be advanced by MPIC and drawn down by First Holdings on or around the 13th November 2009 subject to the execution and delivery of the Note and a pledge over 138,357,600 common shares of First Gen Corporation owned by FGH Cayman and 30,093,270 common shares of Meralco owned by First Holdings Utilities Corporation. The Note will mature on 31 March 2010 and will bear interest at the rate of 5% per annum payable in arrears on maturity of the Note, calculated on the basis of the actual number of days elapsed in a year of 365 days.
The Call Option
First Holdings has also agreed to grant to MPIC the Call Option relating to the Subject Shares owned by First Holdings. The Term Sheet provides that First Holdings shall grant the Call Option not later than 15 January 2010. The Call Option shall be exercisable at any time from the date that the Call Option is granted until midnight on 31 March 2010.
It is expressly stated in the Term Sheet that the rights of MPIC under the Call Option shall be independent of any rights that MPIC may have as lender under the Loan (as described above) and may be exercised by MPIC at its sole option and discretion without regard to the existence or absence of any default under the Loan; provided that the Loan may be assigned by MPIC to First Holdings as payment for part of the purchase price of the Subject Shares in the event (the Call Option is exercised by MPIC while the Loan is still outstanding.
MPIC shall pay to First Holdings (in cash) a distinct consideration for the grant of the Call Option, in an amount to be determined using the Black-Scholes option pricing model. The exercise price is Php 300 per Subject Share. The Term Sheet provides that the exercise of the Call Option by MPIC shall be subject to any appropriate corporate approvals being obtained. The Term Sheet provides for the Subject Shares to be held in escrow by an escrow agent mutually agreed by MPIC and First Holdings, pending the exercise of the Call Option. If the Call Option is not exercised prior to 31 March 2010, the escrow arrangement will terminate and the stock certificates representing the Subject Shares will be returned to First Holdings. First Holdings shall not sell, alienate, transfer, encumber or create any lien or charge on, or any security interest in, the Subject Shares during the period that the Call Option is exercisable by MPIC.
The Term Sheet, which contemplates, amongst other matters, the commitment from First Holdings to grant to MPIC the Call Option, provides MPIC the ability to acquire a strategic equity interest in Meralco. It is anticipated that such strategic interest will complement MPIC's existing investment in the toll road and water sectors represented by controlling interests in Manila North Tollways Corporation and Maynilad Water Services, Inc., respectively.
Issuance of Fixed Rate Corporate Notes
The Board authorized the issuance by MPIC of up to PhP12 Billion 9-Year Fixed Rate Corporate Notes, in one or more tranches, to Primary Institutional Lenders. Said Notes will be secured by a pledge over a total of 163,602,961 Meralco shares owned by MPIC. In connection with said Notes issuance, MPIC is appointing First Metro Investment Corporation and PNB Capital & Investment Corporation as joint issue managers and joint lead underwriters, Metropolitan Bank & Trust Company – Trust as facility agent, paying agent, and debt service account agent and Philippine National Bank – Trust Banking Group as collateral trustee.
A Significant Stake in Meralco
“As MPIC intended, the 6.7% purchase agreement with First Holdings reflects our goal to be a significant shareholder of Meralco” said MPIC President & CEO Jose Ma. K. Lim.
“As a strategic shareholder with appropriate board and management participation, this agreement will enable the realization of synergies within the whole group ” Mr. Lim added.
“Taking into consideration Meralco’s strong financial prospects, we are confident that this transaction secures our objective in adding another valuable core business to MPIC’s portfolio and in strengthening our position as a dominant player in the country’s infrastructure industry” said MPIC Chairman Manuel V. Pangilinan.
source: MPI Press Release/Disclosure to Philippine Stock Exchange
Metro Pacific Investments Corporation (“MPIC”, PSE: MPI) today reported that the Board of Directors in its regular meeting held today, approved
the Term Sheet between MPIC and First Philippine Holdings Corporation ("First Holdings"), in relation to, amongst other things:
- the provision of a loan in the amount of approximately PhP11.2 billion by MPIC to First Holdings or its designated wholly owned subsidiary (the "Loan"); and
- the agreement of First Holdings to grant to MPIC a call option relating to approximately 74.6 million common shares of Meralco (approximately 6.7% of the total current outstanding common shares of Meralco) (the "Subject Shares") owned by First Holdings (the "Call Option"). The Term Sheet is expressed to be legally binding and enforceable but it is contemplated in the Term Sheet that the parties shall endeavour, in utmost good faith, to sign appropriate documentation in due course.
The Php 11.2 billion Loan
MPIC shall provide a loan in the amount of approximately PhP11.2 billion, to be evidenced by a promissory note ("Note"), to First Holdings or its designated wholly owned subsidiary. It is anticipated that the Loan will be advanced by MPIC and drawn down by First Holdings on or around the 13th November 2009 subject to the execution and delivery of the Note and a pledge over 138,357,600 common shares of First Gen Corporation owned by FGH Cayman and 30,093,270 common shares of Meralco owned by First Holdings Utilities Corporation. The Note will mature on 31 March 2010 and will bear interest at the rate of 5% per annum payable in arrears on maturity of the Note, calculated on the basis of the actual number of days elapsed in a year of 365 days.
The Call Option
First Holdings has also agreed to grant to MPIC the Call Option relating to the Subject Shares owned by First Holdings. The Term Sheet provides that First Holdings shall grant the Call Option not later than 15 January 2010. The Call Option shall be exercisable at any time from the date that the Call Option is granted until midnight on 31 March 2010.
It is expressly stated in the Term Sheet that the rights of MPIC under the Call Option shall be independent of any rights that MPIC may have as lender under the Loan (as described above) and may be exercised by MPIC at its sole option and discretion without regard to the existence or absence of any default under the Loan; provided that the Loan may be assigned by MPIC to First Holdings as payment for part of the purchase price of the Subject Shares in the event (the Call Option is exercised by MPIC while the Loan is still outstanding.
MPIC shall pay to First Holdings (in cash) a distinct consideration for the grant of the Call Option, in an amount to be determined using the Black-Scholes option pricing model. The exercise price is Php 300 per Subject Share. The Term Sheet provides that the exercise of the Call Option by MPIC shall be subject to any appropriate corporate approvals being obtained. The Term Sheet provides for the Subject Shares to be held in escrow by an escrow agent mutually agreed by MPIC and First Holdings, pending the exercise of the Call Option. If the Call Option is not exercised prior to 31 March 2010, the escrow arrangement will terminate and the stock certificates representing the Subject Shares will be returned to First Holdings. First Holdings shall not sell, alienate, transfer, encumber or create any lien or charge on, or any security interest in, the Subject Shares during the period that the Call Option is exercisable by MPIC.
The Term Sheet, which contemplates, amongst other matters, the commitment from First Holdings to grant to MPIC the Call Option, provides MPIC the ability to acquire a strategic equity interest in Meralco. It is anticipated that such strategic interest will complement MPIC's existing investment in the toll road and water sectors represented by controlling interests in Manila North Tollways Corporation and Maynilad Water Services, Inc., respectively.
Issuance of Fixed Rate Corporate Notes
The Board authorized the issuance by MPIC of up to PhP12 Billion 9-Year Fixed Rate Corporate Notes, in one or more tranches, to Primary Institutional Lenders. Said Notes will be secured by a pledge over a total of 163,602,961 Meralco shares owned by MPIC. In connection with said Notes issuance, MPIC is appointing First Metro Investment Corporation and PNB Capital & Investment Corporation as joint issue managers and joint lead underwriters, Metropolitan Bank & Trust Company – Trust as facility agent, paying agent, and debt service account agent and Philippine National Bank – Trust Banking Group as collateral trustee.
A Significant Stake in Meralco
“As MPIC intended, the 6.7% purchase agreement with First Holdings reflects our goal to be a significant shareholder of Meralco” said MPIC President & CEO Jose Ma. K. Lim.
“As a strategic shareholder with appropriate board and management participation, this agreement will enable the realization of synergies within the whole group ” Mr. Lim added.
“Taking into consideration Meralco’s strong financial prospects, we are confident that this transaction secures our objective in adding another valuable core business to MPIC’s portfolio and in strengthening our position as a dominant player in the country’s infrastructure industry” said MPIC Chairman Manuel V. Pangilinan.
source: MPI Press Release/Disclosure to Philippine Stock Exchange
Monday, September 28, 2009
Epic Flooding and Rains in Manila
Typhoon “Ondoy” (tropical storm Ketsana) hit Metro Manila last September 26, 2009 causing unprecedented flooding in 80% of the metropolis.
Entire towns were submerged in floods and in some areas, cars and trucks were swept by the waters like inflatable toys. As of Monday, Sept 28, 2009, 95 were confirmed dead, 280,000 displaced, 30 missing. Many were still stranded in flooded areas with thousands still perched on rooftops and second levels of their houses. Traffic remained paralyzed in many areas.
Entire towns were submerged in floods and in some areas, cars and trucks were swept by the waters like inflatable toys. As of Monday, Sept 28, 2009, 95 were confirmed dead, 280,000 displaced, 30 missing. Many were still stranded in flooded areas with thousands still perched on rooftops and second levels of their houses. Traffic remained paralyzed in many areas.
- The amount of rain brought by Hurricane Katrina to New Orleans is 2005 was 250mm in 24 hours
- The previous highest daily amount of rain in recorded Philippine history was 334mm in 24 hours.
- The amount of rain that fell September 26 in Quezon City from 8am to 2pm was 341mm in SIX hours only!
- The average maximum rainfall in Manila during the year is 432mm for the entire month of August.
- The amount of rain that fell September 26 in Quezon City was 455mm in 24 hours
- Epic Flood in Metro Manila Caused by Record Rainfall
- Tropical Storm Ketsana
- Typhoon Andoy in pictures
- Floating cars in UERM
Wednesday, September 16, 2009
SPI Acquires Laguna Medical Systems, Inc
ePLDT's BPO subsidiary SPI acquires Laguna Medical Systems, Inc. (LMS) SPi Expands Healthcare Platform by Adding Medical Coding Consulting Services to Its Portfolio.
WASHINGTON, DC. Sept 02, 2009. SPi, a leading global business process outsourcing (BPO) company, today announced that it has acquired Laguna Medical Systems, Inc. (LMS) for an aggregate purchase price of US $8.25 million.
LMS has 50+ regionally-based consultants who assist more than 200 hospitals to achieve coding and billing compliance and to optimize entitled reimbursements for patient services. The 22-year-old company also offers Recovery Audit Contractor (RAC) defense and recovery services to help healthcare providers manage and defend RAC audits.
Peter Maquera, President and CEO of SPi, said, "As a result of the significant focus on healthcare reform in the US, we have been actively tracking companies in the coding compliance space with the goal of finding one to acquire whose corporate culture and values match our own. LMS fits the bill. Their capabilities nicely complement our existing medical transcription, billing and revenue cycle management services and provide an excellent, new entry point for us into this rapidly growing $25 billion industry."
Maquera went on to say, "The inclusion of LMS's service offerings in our Healthcare portfolio allows us to strengthen our relationships with the more than 400 hospitals, multi-specialty clinics and physician practices that we currently serve, and it increases our Healthcare-specific employee base to more than 2,000 worldwide."
The US healthcare industry accounts for 16% of US GDP and is the largest segment in the US economy. With the US government now requiring healthcare providers to achieve a 95% or greater accuracy rate on medical coding, inexperienced healthcare providers with limited resources are expected to struggle to meet this requirement, enhancing growth opportunities for well-funded and managed service providers in the coding compliance consulting market. Add to this that the US government's RAC program is soon to expand from just hospitals to physicians in all states and the rationale for entering this coding marketplace becomes even stronger.
"SPi's acquisition of LMS is an excellent example of how we are executing on our strategic plan to accelerate growth and strengthen our position in the BPO arena," stated Ray C. Espinosa, President and CEO of ePLDT.
Espinosa went on to say, "Recognizing the rapid and continued growth in the healthcare industry, we are committed to expanding our platform in this area and are delighted to be adding another annuity-based business to our overall BPO portfolio."
Mike Beninato, President and CEO of SPi's wholly-owned medical billing and revenue cycle management company, Springfield Service Corporation (SSC), said, "SSC's management team is equally pleased with the acquisition of LMS and looks forward to merging its service offerings with our own." He added, "As it is becoming increasingly important for healthcare providers to significantly improve their efficiency while simultaneously lowering their costs, LMS's coding, audit and compliance consulting services, along with the rest of SPi's offerings, provide a critical set of capabilities for organizations navigating their way through today's ever-changing healthcare landscape. We look forward to working with LMS to integrate its offerings with ours and to achieve continued growth and profitability together in the years ahead."
Source ePLDT Press Release
WASHINGTON, DC. Sept 02, 2009. SPi, a leading global business process outsourcing (BPO) company, today announced that it has acquired Laguna Medical Systems, Inc. (LMS) for an aggregate purchase price of US $8.25 million.
LMS has 50+ regionally-based consultants who assist more than 200 hospitals to achieve coding and billing compliance and to optimize entitled reimbursements for patient services. The 22-year-old company also offers Recovery Audit Contractor (RAC) defense and recovery services to help healthcare providers manage and defend RAC audits.
Peter Maquera, President and CEO of SPi, said, "As a result of the significant focus on healthcare reform in the US, we have been actively tracking companies in the coding compliance space with the goal of finding one to acquire whose corporate culture and values match our own. LMS fits the bill. Their capabilities nicely complement our existing medical transcription, billing and revenue cycle management services and provide an excellent, new entry point for us into this rapidly growing $25 billion industry."
Maquera went on to say, "The inclusion of LMS's service offerings in our Healthcare portfolio allows us to strengthen our relationships with the more than 400 hospitals, multi-specialty clinics and physician practices that we currently serve, and it increases our Healthcare-specific employee base to more than 2,000 worldwide."
The US healthcare industry accounts for 16% of US GDP and is the largest segment in the US economy. With the US government now requiring healthcare providers to achieve a 95% or greater accuracy rate on medical coding, inexperienced healthcare providers with limited resources are expected to struggle to meet this requirement, enhancing growth opportunities for well-funded and managed service providers in the coding compliance consulting market. Add to this that the US government's RAC program is soon to expand from just hospitals to physicians in all states and the rationale for entering this coding marketplace becomes even stronger.
"SPi's acquisition of LMS is an excellent example of how we are executing on our strategic plan to accelerate growth and strengthen our position in the BPO arena," stated Ray C. Espinosa, President and CEO of ePLDT.
Espinosa went on to say, "Recognizing the rapid and continued growth in the healthcare industry, we are committed to expanding our platform in this area and are delighted to be adding another annuity-based business to our overall BPO portfolio."
Mike Beninato, President and CEO of SPi's wholly-owned medical billing and revenue cycle management company, Springfield Service Corporation (SSC), said, "SSC's management team is equally pleased with the acquisition of LMS and looks forward to merging its service offerings with our own." He added, "As it is becoming increasingly important for healthcare providers to significantly improve their efficiency while simultaneously lowering their costs, LMS's coding, audit and compliance consulting services, along with the rest of SPi's offerings, provide a critical set of capabilities for organizations navigating their way through today's ever-changing healthcare landscape. We look forward to working with LMS to integrate its offerings with ours and to achieve continued growth and profitability together in the years ahead."
Source ePLDT Press Release
Treasure Steelworks Fires New Furnace
Manila. Sept 3, 2009. Treasure Steelworks, a subsidiary of TKC Steel Corporation, has commissioned its new Eccentric Bottom Tapping Electric Arc Furnace (EBT-EAF) as part of its capacity and capability enhancement projects.
Full commercial operation of the new facility is expected to start as soon as the series of tests for direct charging of beneficiated iron core are completed.
As part of the strategic plan of TKC Steel, it is testing the use of locally sourced iron ora processed from its beneficiating facility as raw material for its furnaces. Scrap metal is fast becoming scarce and costly. But the country has more than enough supply of iron ore to meet the TKC subsidiary's total present and future requirements.
Initial test results from the use of beneficiated local iron ore are said to be encouraging. They indicated substantial cost savings and improved yields of melted steel that the company is confident that it will be able to arrive at the optimum mixture of materials and additives that will reduce its dependence on scrap.
The capacity of the new furnace is 50MT per heat. This increases Treasure Steelworks' annual production output of billets by about 15%. The new facility is also equipped with the latest supersonic oxygen injector that would further improve production output.
Together with the newly commissioned ladle furnace and the newly installed iron ore beneficiating facility, the billet manufacturing shop of Treasure Steel will be the most modern facility in the Philippines, equal to similar modern plants in the ASEAN region.
Source: TKC Steel Press Release
Full commercial operation of the new facility is expected to start as soon as the series of tests for direct charging of beneficiated iron core are completed.
As part of the strategic plan of TKC Steel, it is testing the use of locally sourced iron ora processed from its beneficiating facility as raw material for its furnaces. Scrap metal is fast becoming scarce and costly. But the country has more than enough supply of iron ore to meet the TKC subsidiary's total present and future requirements.
Initial test results from the use of beneficiated local iron ore are said to be encouraging. They indicated substantial cost savings and improved yields of melted steel that the company is confident that it will be able to arrive at the optimum mixture of materials and additives that will reduce its dependence on scrap.
The capacity of the new furnace is 50MT per heat. This increases Treasure Steelworks' annual production output of billets by about 15%. The new facility is also equipped with the latest supersonic oxygen injector that would further improve production output.
Together with the newly commissioned ladle furnace and the newly installed iron ore beneficiating facility, the billet manufacturing shop of Treasure Steel will be the most modern facility in the Philippines, equal to similar modern plants in the ASEAN region.
Source: TKC Steel Press Release
Tuesday, August 18, 2009
Philippine Flash Indicators Show Signs of Recovery
The impact of the global financial crisis was felt in the Philippines starting October 2008 as exports decreased, manufacturing dropped, stock index declined and car sales weakened. However, statistics point to modest signs of recovery by the end of the 1st quarter of 2009.
Multiple indicators dropped beginning October 2008:
Multiple indicators dropped beginning October 2008:
- Manufacturing: the value and volume of production index and capacity utilization rate
- Exports: electronic products and agricultural products
- Imports: raw materials and capital goods.
- Others: composite stock index, stock market capitalization, and volume of cars sold.
All these indicators showed signs of recovery towards the end of February 2009.
These indicators are among the 81 flash indicators identified by the NSCB Task Force on Flash Indicators to Measure the Impact of Global Crisis in the Philippines (TFFI) chaired by Mr. Dennis P. Arroyo, Director of the National Planning and Policy Staff of the National Economic and Development Authority. The levels and movements of these indicators can serve as early warning signals of economic crisis or recovery when the indicators start to shift significantly from their “normal” levels.
See full story from the Philippine National Statistical Coordination Board
August 19, 2009
Friday, July 31, 2009
San Miguel Diversifies, Bucks Economic Downtrend.
July 2009. Conglomerate San Miguel Corporation (SMC) emphasized that its aggressive diversification program is a way to secure future growth for the company and spur economic growth and development in the Philippines.
Bucking the global economic downtrend, San Miguel posted positive results for 2008, which reported P19.3 billion in consolidated net income for 2008, 124% higher than in 2007, is currently undertaking a massive diversification into important industries such as power generation, oil refining, telecoms, water distribution, tollways, and infrastructure.
In his address to stockholders at the company’s annual meeting, SMC Chairman and Chief Executive Officer Eduardo M. Cojuangco Jr., said:
“Beyond seeking profit, we want to be in industries that serve as the backbone of our country’s development, and impact the lives of Filipinos in a meaningful way. We have complete confidence in our country’s potential.”
San Miguel recently invested in Manila Electric Co. (Meralco), the country’s largest power distributor. It has also signed an option agreement to acquire UK-based Ashmore Group’s 100% stake in Sea Refinery Corp., which holds 50.1% of the Philippines’ largest oil refiner, Petron.
The company has also acquired 32.7% of Liberty Telecommunications Holdings, Inc. In February 2009, it submitted an unsolicited proposal for the government’s Laiban Dam project.
More recently, San Miguel announced that it had entered into a non-binding agreement to acquire a significant stake in Private Infrastructure Development Corp. (PIDC), the consortium behind the 88.57-kilometer Tarlac-Pangasinan-La Union Toll Expressway project.
Cojuangco reported:
“We have moved beyond consumer products and services, and are working towards programs that make a real difference in people’s lives. We are proud to be part of a San Miguel that keeps as many people as possible working, earning and contributing to the economy”
“We hope to see in a few years, more efficient and affordable electricity services, more accessible and affordable fuel, the creation of thousands of new jobs, and a sustainable supply of potable water for millions of residents in the National Capital Region.”
Cojuangco pointed out that despite the world’s deepening economic woes, San Miguel was able to attract foreign investors from Japan, Southeast Asia, the United States, and the Middle East for its projects.
The chief executive, however, acknowledged lingering scepticism from some quarters for the company’s strategy, first articulated in 2007. He said.
“Some of these doubts still linger, but let me assure you that the San Miguel we have built has the resources and preparedness to run these new ventures as efficiently as we do our traditional businesses. While the global financial meltdown has sent many companies into full retreat, our company is powering ahead, investing heavily in a strategy to reaccelerate growth.”
Minus non-recurring gains on the sale of investments, SMC reported strong net income results, totaling P7.22 billion, 4% higher than in the previous year. Its consolidated sales revenue rose 14% to P168 billion and operating income was up by 26% to P14.8 billion. Cojuangco assured the stockholders, saying:
“As shareholders ourselves, we understand that dividends and earnings from our investments are tied very much to the company’s annual gains. These new ventures will add more value to our investments—complementing the contributions of our traditional businesses.”
San Miguel stockholders, meanwhile, voted in favor of an Exchange Offer to convert 1.104 billion common shares to series 1 preferred shares. Cojuangco explained that while they are optimistic about SMC’s the long-term value, this alternative would be for “more conservative” investors who may have a different risk profile.
Source: San Miguel Press Release.
Bucking the global economic downtrend, San Miguel posted positive results for 2008, which reported P19.3 billion in consolidated net income for 2008, 124% higher than in 2007, is currently undertaking a massive diversification into important industries such as power generation, oil refining, telecoms, water distribution, tollways, and infrastructure.
In his address to stockholders at the company’s annual meeting, SMC Chairman and Chief Executive Officer Eduardo M. Cojuangco Jr., said:
“Beyond seeking profit, we want to be in industries that serve as the backbone of our country’s development, and impact the lives of Filipinos in a meaningful way. We have complete confidence in our country’s potential.”
San Miguel recently invested in Manila Electric Co. (Meralco), the country’s largest power distributor. It has also signed an option agreement to acquire UK-based Ashmore Group’s 100% stake in Sea Refinery Corp., which holds 50.1% of the Philippines’ largest oil refiner, Petron.
The company has also acquired 32.7% of Liberty Telecommunications Holdings, Inc. In February 2009, it submitted an unsolicited proposal for the government’s Laiban Dam project.
More recently, San Miguel announced that it had entered into a non-binding agreement to acquire a significant stake in Private Infrastructure Development Corp. (PIDC), the consortium behind the 88.57-kilometer Tarlac-Pangasinan-La Union Toll Expressway project.
Cojuangco reported:
“We have moved beyond consumer products and services, and are working towards programs that make a real difference in people’s lives. We are proud to be part of a San Miguel that keeps as many people as possible working, earning and contributing to the economy”
“We hope to see in a few years, more efficient and affordable electricity services, more accessible and affordable fuel, the creation of thousands of new jobs, and a sustainable supply of potable water for millions of residents in the National Capital Region.”
Cojuangco pointed out that despite the world’s deepening economic woes, San Miguel was able to attract foreign investors from Japan, Southeast Asia, the United States, and the Middle East for its projects.
The chief executive, however, acknowledged lingering scepticism from some quarters for the company’s strategy, first articulated in 2007. He said.
“Some of these doubts still linger, but let me assure you that the San Miguel we have built has the resources and preparedness to run these new ventures as efficiently as we do our traditional businesses. While the global financial meltdown has sent many companies into full retreat, our company is powering ahead, investing heavily in a strategy to reaccelerate growth.”
Minus non-recurring gains on the sale of investments, SMC reported strong net income results, totaling P7.22 billion, 4% higher than in the previous year. Its consolidated sales revenue rose 14% to P168 billion and operating income was up by 26% to P14.8 billion. Cojuangco assured the stockholders, saying:
“As shareholders ourselves, we understand that dividends and earnings from our investments are tied very much to the company’s annual gains. These new ventures will add more value to our investments—complementing the contributions of our traditional businesses.”
San Miguel stockholders, meanwhile, voted in favor of an Exchange Offer to convert 1.104 billion common shares to series 1 preferred shares. Cojuangco explained that while they are optimistic about SMC’s the long-term value, this alternative would be for “more conservative” investors who may have a different risk profile.
Source: San Miguel Press Release.
Monday, July 20, 2009
San Miguel Sets its sights on Dole Philippines
Philippine food and beverage giant San Miguel Corporation confirmed it has expressed interest in taking over operations of global agro-industrial company Dole Food Co., in the Philippines and in other Asian countries as part of its core business expansion.
Ramon Ang, SMC President and Chief Executive Officer said:
"San Miguel is interested in Dole Philippines, but it is willing to consider Dole’s other units within the region"
San Miguel used to own a minority stake in Dole’s rival, Del Monte Pacific Ltd., but sold out to partner group of condiments magnate Jose Campos Jr., two years ago.
Dole Philippines Inc. has a 24,000-acre base plantation, two cannery complexes with a can plant, a packaging plant and fresh fruit packaging plant in Mindanao with shipping and wharf operations. Dole also has 18,000 acres of grower farms in South Cotabato and Sarangani.
Dole employs almost 6,000 regular employees with product lines including canned pineapple solids, canned mixed fruits, canned beverages, packaged fruit snacks and tomato sauce.
Dole Philippines has a division that produces and exports cavendish bananas to Japan, Korea, China, Hong Kong, New Zealand and the Middle East, controlling a third of the Philippines’s banana industry in terms of plantation size and volume of shipment throughout Asia-Pacific.
Ramon Ang, SMC President and Chief Executive Officer said:
"San Miguel is interested in Dole Philippines, but it is willing to consider Dole’s other units within the region"
San Miguel used to own a minority stake in Dole’s rival, Del Monte Pacific Ltd., but sold out to partner group of condiments magnate Jose Campos Jr., two years ago.
Dole Philippines Inc. has a 24,000-acre base plantation, two cannery complexes with a can plant, a packaging plant and fresh fruit packaging plant in Mindanao with shipping and wharf operations. Dole also has 18,000 acres of grower farms in South Cotabato and Sarangani.
Dole employs almost 6,000 regular employees with product lines including canned pineapple solids, canned mixed fruits, canned beverages, packaged fruit snacks and tomato sauce.
Dole Philippines has a division that produces and exports cavendish bananas to Japan, Korea, China, Hong Kong, New Zealand and the Middle East, controlling a third of the Philippines’s banana industry in terms of plantation size and volume of shipment throughout Asia-Pacific.
Monday, June 1, 2009
Aboitiz Purchases Geothermal Plants
AP Renewables, Inc. (APRI), a wholly owned subsidiary of Aboitiz Power Corporation (AP), paid today to the Power Sector Assets and Liabilities Management Corporation (PSALM) the P8.29 billion downpayment on the purchase price of the 289 MW Tiwi geothermal power plant facility in Albay and the 458 MW Makiling-Banahaw geothermal power plant facility in Laguna (collectively referred to as the “Tiwi-MakBan geothermal facilities”).
Following the payment, which represents 40% of the purchase price, PSALM is expected to turn over at midnight today the possession and control over the Tiwi-MakBan geothermal facilities. The 60% balance in the purchase price is payable over a period of seven years in fourteen equal semi-annual installments.
APRI won the competitive bid conducted by PSALM for the sale of the Tiwi-MakBan geothermal facilities on July 30, 2008. The Tiwi-MakBan geothermal facilities have a sustainable capacity of approximately 462 MW
Following the payment, which represents 40% of the purchase price, PSALM is expected to turn over at midnight today the possession and control over the Tiwi-MakBan geothermal facilities. The 60% balance in the purchase price is payable over a period of seven years in fourteen equal semi-annual installments.
APRI won the competitive bid conducted by PSALM for the sale of the Tiwi-MakBan geothermal facilities on July 30, 2008. The Tiwi-MakBan geothermal facilities have a sustainable capacity of approximately 462 MW
Digitel Aims to Grab Postpaid Lead
Citing significant growth in the number of Sun subscribers, Gokongwei-led Digital Telecommunications Philippines, Inc (Digitel) expects its mobile unit Sun Cellular to double service revenues and even take the lead in the postpaid segment this year.
Digitel Vice Chairman, President and Chief Executive Office James L. Go said: "We are expecting that our service revenues in Sun Cellular will incur a 100%
growth year on year, exceeding 2008 growth of 82%".
Mr. Go said Digitel would borrow $200 million to partly fund the $300 million to $350 million in capital expenditures this year, to be allocated for additional cellular sites. "Currently, we already have 4,603 cell sites and we are aiming to build 1,000 cell sites more for our 2G business and additional 300 to 500 sites for our 3G service, Mr. Go added.
Mr. Go said Sun Cellular has a total of 10 million subscribers, with an additional five million to six million subscribers this year.
Digitel Vice Chairman, President and Chief Executive Office James L. Go said: "We are expecting that our service revenues in Sun Cellular will incur a 100%
growth year on year, exceeding 2008 growth of 82%".
Mr. Go said Digitel would borrow $200 million to partly fund the $300 million to $350 million in capital expenditures this year, to be allocated for additional cellular sites. "Currently, we already have 4,603 cell sites and we are aiming to build 1,000 cell sites more for our 2G business and additional 300 to 500 sites for our 3G service, Mr. Go added.
Mr. Go said Sun Cellular has a total of 10 million subscribers, with an additional five million to six million subscribers this year.
New Asia Pacific Gateway Cable System by 2011
Major telecommunications companies signed in Kuala Lumpur last May 25 , 2009, a Memorandum of Understanding (MOU) to plan and develop the an international undersea cable system within the Asia Pacific Region.
The proposed Asia Pacific Gateway Cable System will link major economic growth countries in the Asia Pacific region. It is currently planned to link Malaysia, Singapore, Thailand, Vietnam, Hong Kong, the Philippines, Taiwan, China Mainland, Japan and Korea. It will span about 8,000km and will use the latest Dense Wavelength Division Multiplexing (DWDM) technologies with a minimum design capacity of 4 Terabit/s. Parties to the Asia Pacific Gateway include Chunghwa Telecom (Taiwan), China Telecom (China Mainland), China Unicom (China Mainland), KT Corporation (Korea), NTT Communications (Japan), PLDT (Philippines), Telekom Malaysia (Malaysia) and VNPT (Vietnam)
The proposed Asia Pacific Gateway will provide additional capacity for growing demand and an alternative, diverse routing within the region such that it will avoid some of the areas most prone to seismic activity, conditions which are hazardous to undersea cables.
It is planned to be ready for service in 2011. “The planning and eventual implementation of the new Asia Pacific Gateway project is timely due to the growing bandwidth demand of PLDT and the other proponents. It is also intended to meet the requirements for cable route diversity, protection, and to provide capacity to replace the retiring cables in the region,” said Alejandro Caeg, PLDT First Vice President, International & Carrier Business Group. The proposed cable system has the potential to provide an alternative route and/or restoration paths to existing cable systems in the region as it is designed to provide a high degree of inter-connectivity with existing and planned high bandwidth systems.
The proposed Asia Pacific Gateway Cable System will link major economic growth countries in the Asia Pacific region. It is currently planned to link Malaysia, Singapore, Thailand, Vietnam, Hong Kong, the Philippines, Taiwan, China Mainland, Japan and Korea. It will span about 8,000km and will use the latest Dense Wavelength Division Multiplexing (DWDM) technologies with a minimum design capacity of 4 Terabit/s. Parties to the Asia Pacific Gateway include Chunghwa Telecom (Taiwan), China Telecom (China Mainland), China Unicom (China Mainland), KT Corporation (Korea), NTT Communications (Japan), PLDT (Philippines), Telekom Malaysia (Malaysia) and VNPT (Vietnam)
The proposed Asia Pacific Gateway will provide additional capacity for growing demand and an alternative, diverse routing within the region such that it will avoid some of the areas most prone to seismic activity, conditions which are hazardous to undersea cables.
It is planned to be ready for service in 2011. “The planning and eventual implementation of the new Asia Pacific Gateway project is timely due to the growing bandwidth demand of PLDT and the other proponents. It is also intended to meet the requirements for cable route diversity, protection, and to provide capacity to replace the retiring cables in the region,” said Alejandro Caeg, PLDT First Vice President, International & Carrier Business Group. The proposed cable system has the potential to provide an alternative route and/or restoration paths to existing cable systems in the region as it is designed to provide a high degree of inter-connectivity with existing and planned high bandwidth systems.
Fiber To The Home: PLDT Ups Ante for Broadband
The Philippine Long Distance Telephone Co. (PLDT) will launch later this year the most advanced broadband delivery platform called Fiber To The Home, or FTTH, to deliver high-speed data services to residences and buildings.
FTTH uses fiber optic technology which transmits data via light signals sent through hair-thin strands of pure glass. Instead of the usual copper going to the homes of customers, thin fiber optic cables will be used. The new platform will be able to deliver simultaneously voice, video and data services at much higher speeds and larger capacities than DSL or cable technologies.
Napoleon L. Nazareno, PLDT President and Chief Executive Officer said:
“Fiber to the home is a quantum leap forward in terms of broadband services. This demonstrates PLDT’s commitment to offer its customers cutting edge communication technologies.”
PLDT Network head Rolando G. Peña said that in a demonstration facility at the PLDT’s head office, an FTTH-enabled computer posted download speeds of up to 94.86 megabits per second (mbps) and upload rates of 69.39 mbps.
At those speeds, it would take only one second to download a 5Mb mp3 file, 3 seconds for a 35Mb video clip and only one minute to download an 800Mb movie.
“Depending on how we’ll design the product, we can provide gigabit speeds to homes, not just megabit speeds,” he said.
PLDT Chairman Manuel V. Pangilinan tested the new technology by watching the recent Manny Pacquiao-Ricky Hatton fight via live video streaming using FTTH.
“Excellent reception. Excellent definition of the pictures,” said Pangilinan, who also chairs the Amateur Boxing Association of the Philippines (ABAP).
The new service will be initially marketed to high-bandwidth residential customers such as households in high-income subdivisions and condominiums.
Pilot areas for FTTH will include areas such as Bonifacio Global City, Forbes Park, Urdaneta Village, Ayala Alabang, Dasmariñas Village, Wack Wack, Ayala Heights, Valle Verde and certain areas covered by PLDT Subictel and PLDT Clarktel.
“We’re targeting 1,000 customers this year and expand to 10,000 later on,” said Virgilio Ofina, Senior Manager of GMM NGN Access Provisioning and Transport Engineering Division.
The use of FTTH will simplify the delivery of various services. For instance, a customer can avail of telephone, video, audio, television and just about any other kind of digital data service through a single FTTH connection.
He explained that there is virtually no degradation of signals with FTTH and that it’s future-proof because the new technologies currently being developed now are based on fiber optic technology.
Services such as 3D holographic high-definition television and video games can be delivered via fiber to the home.
“FTTH represents a new level of services for our fixed line business. If we could build this extensively in all the major cities and municipalities, FTTH will redefine and reshape our fixed line business,” Pangilinan said.
PETRON UPSIZES NOTES OFFER TO P10-BILLION
Petron, the Philippines' leading oil refining and marketing company upsized
the issuance of its Fixed Rate Corporate Notes (FXCN) to P10 billion from the original amount of P3 billion due to high demand from participating banks.
This was announced during the signing of the Note Facility Agreement May 29, 2009. The issue, one of the largest corporate note issuances in the history of Philippine debt capital markets, was more than three times oversubscribed and was priced at 8.139% for the five year tenor and 9.329% for the seven year tenor.
The facility was priced 200 basis points over the applicable benchmark PDSTF rate, the lowest end of the company’s pricing guidance.
Petron President Eric O. Recto said:
“The strong and positive response to our notes issue reflects the trust and confidence of the investment community in the viability and profitability of Petron over the longterm. It likewise underscores the company’s solid fundamentals, undisputed market leadership, extensive and efficient distribution network and numerous synergies with San Miguel.”
PhilRatings gave the highest possible corporate rating, a PRS AAA rating for Petron’s outstanding P6.3 billion corporate notes issued in July 2006. PhilRatings
likewise gave the same rating to the company’s overall capacity to service its maturing debts. A rating of PRS Aaa is given to corporations “with a VERY STRONG capacity to meet its financial requirements relative to that of other Philippine corporates.”
Given the upsize of Petron’s FXCN, the company said that it will no longer pursue its initial plan to issue retail bonds. Funds from the FXCN will be used to pursue projects such as an aggressive retail network expansion program and additional improvements at its 180,000 barrel-per-day Bataan refinery.
The expansion program aims to further enhance customer convenience and ensure the company’s market dominance. At the heart of this program is the construction of prefabricated stations that can start with 2-3 product pumps but easily expandable as demand grows.
Another initiative is the construction of additional refinery units including a second Petro Fluidized Catalytic Cracking Unit (PetroFCC 2) that will enable the full conversion of residual products to more valuable gasoline, diesel, LPG and propylene.
Petron’s FXCN was jointly arranged by BPI Capital Corporation and ING Bank NV,Manila Branch as Joint Issue Managers together with the Development Bank of the Philippines and The Hongkong and Shanghai Banking Corporation Limited as Joint Lead Managers.
Source: Petron Corp Press Release Dated May 29, 2009
the issuance of its Fixed Rate Corporate Notes (FXCN) to P10 billion from the original amount of P3 billion due to high demand from participating banks.
This was announced during the signing of the Note Facility Agreement May 29, 2009. The issue, one of the largest corporate note issuances in the history of Philippine debt capital markets, was more than three times oversubscribed and was priced at 8.139% for the five year tenor and 9.329% for the seven year tenor.
The facility was priced 200 basis points over the applicable benchmark PDSTF rate, the lowest end of the company’s pricing guidance.
Petron President Eric O. Recto said:
“The strong and positive response to our notes issue reflects the trust and confidence of the investment community in the viability and profitability of Petron over the longterm. It likewise underscores the company’s solid fundamentals, undisputed market leadership, extensive and efficient distribution network and numerous synergies with San Miguel.”
PhilRatings gave the highest possible corporate rating, a PRS AAA rating for Petron’s outstanding P6.3 billion corporate notes issued in July 2006. PhilRatings
likewise gave the same rating to the company’s overall capacity to service its maturing debts. A rating of PRS Aaa is given to corporations “with a VERY STRONG capacity to meet its financial requirements relative to that of other Philippine corporates.”
Given the upsize of Petron’s FXCN, the company said that it will no longer pursue its initial plan to issue retail bonds. Funds from the FXCN will be used to pursue projects such as an aggressive retail network expansion program and additional improvements at its 180,000 barrel-per-day Bataan refinery.
The expansion program aims to further enhance customer convenience and ensure the company’s market dominance. At the heart of this program is the construction of prefabricated stations that can start with 2-3 product pumps but easily expandable as demand grows.
Another initiative is the construction of additional refinery units including a second Petro Fluidized Catalytic Cracking Unit (PetroFCC 2) that will enable the full conversion of residual products to more valuable gasoline, diesel, LPG and propylene.
Petron’s FXCN was jointly arranged by BPI Capital Corporation and ING Bank NV,Manila Branch as Joint Issue Managers together with the Development Bank of the Philippines and The Hongkong and Shanghai Banking Corporation Limited as Joint Lead Managers.
Source: Petron Corp Press Release Dated May 29, 2009
Sunday, May 10, 2009
Energy Development Corporation Confirms Interest in Increasing Wind Power Capacity
In a disclosure to the Philippine Stock Exchange, Lopez controlled Energy Development Corporation confirmed on-going tender for EDC’s 86 MW Burgos Wind power Project and details of the article “EDC Mulls increase in wind power capacity” published in the May 6, 2009 issue of The Philippine Star.
The article reported, in part, that:
“ (EDC) .... is looking at the possibility of increasing its wind power project to 86 megawatts (MW), making it the biggest wind farm in Southeast Asia, the company’s top executive said. EDC President Paul Aquino said the company is currently soliciting proposals from various contractors for the expansion in the wind power project. “We decided on 86 MW from the previously planned 40 to 60 MW so that we can get the attention of the suppliers and it will be more cost efficient for us,” Aquino said … Aquino said the company is also planning to build a five-MW wind project near Boracay …"
The article reported, in part, that:
“ (EDC) .... is looking at the possibility of increasing its wind power project to 86 megawatts (MW), making it the biggest wind farm in Southeast Asia, the company’s top executive said. EDC President Paul Aquino said the company is currently soliciting proposals from various contractors for the expansion in the wind power project. “We decided on 86 MW from the previously planned 40 to 60 MW so that we can get the attention of the suppliers and it will be more cost efficient for us,” Aquino said … Aquino said the company is also planning to build a five-MW wind project near Boracay …"
GLOBE TELECOM ANNOUNCES CORE NET INCOME OF P3.7 BILLION IN Q1 2009
Globe Telecom registered consolidated service revenues of P16.0 billion in the first quarter of 2009, 3% higher than last year given the steady performance of the Company’s wireless business and the sustained expansion of its broadband and wireline data business. Revenues from the wireless business increased by about P120 million or 1% year on year to reach P14.0 billion, while the wireline and broadband business grew 17% or about P300 million to close the period with record high quarterly revenues of P2.1 billion.
Net income after tax was P4.0 billion, 17% above last year’s P3.4 billion. This quarter’s net income includes an after-tax gain of P398 million arising from an equipment exchange transaction with an equipment supplier. Excluding foreign exchange and mark-to-market gains and losses as well as the gain from the equipment exchange transaction, core net income grew 5% to P3.7 billion from P3.5 billion a year ago. Consolidated EBITDA margin was at 61% for the period
compared to 64% for the same period last year and 55% from last quarter.
The wireless business posted healthy subscriber growth with total SIM base expanding 21% year-on-year to 25.7 million subscribers. While net additions remained healthy, average revenue per subscriber declined as a result of continued multi-SIM usage and low usage levels of new subscribers.
Meanwhile, the Company’s broadband business continued to post strong growth, with over 287,000 broadband subscribers by quarter-end, more than double last year’s level. Subscribers of the Company’s fully mobile broadband service Globe Broadband Tattoo comprised almost 75% of this quarter’s net subscriber additions. With sustained double digit subscriber growth, broadband revenues rose 58% year-on-year to close the quarter at P640 million.
“We are encouraged by the continued growth of our overall business, especially considering the challenging environment against which it was achieved,” Ernest L. Cu, President and CEO of Globe Telecom, Inc. said. “Moving forward, we will remain focused on enhancing our services, strengthening our brand propositions and product offers, and improving our processes to compete effectively in this highly demanding and competitive market.,” said Mr. Cu.
To sustain its growth momentum, Globe introduced service innovations that are relevant to its customers’ needs, easy to use and affordable. During the quarter, Globe introduced a single, easy-to-recall access code “8888” for all its bulk and unlimited SMS and voice promos (Unlitxt, TodoText, Sulitxt, Everybodytxt, Unlicalls Nyt, Todo Tawag Magdamag, TxtOthers, and ITXT).
The Company also recently introduced a key service enhancement that allows Globe and TM subscribers to purchase Sulitxt and Everybodytxt load credits directly from the Company’s retailers, making it more convenient for subscribers to avail of these popular bulk SMS offers.
To drive subscriber acquisitions, Globe introduced Load Tipid Plans – a hybrid prepaid and postpaid plan – which allow subscribers to set a monthly limit on usage while retaining the flexibility to reload value through the usual channels once their limits have been reached. Also recently, the Company launched another pioneering service Globe DUO – an innovative service that combines a mobile and wireless landline service into one handset. DUO subscribers can
make unlimited calls to any landline within the same area code as well as mobile calls to other DUO subscribers, all for an incremental monthly service fee of P 399 on top of a postpaid plan.
For broadband, Globe re-launched its fully mobile broadband service as Globe Broadband Tattoo to appeal to the growing youth segment who require on-the-go broadband connections. The new Globe Broadband Tattoo service is available in prepaid and postpaid variants that offer connections of up to 2 Mbps. Prepaid kits have been made even more affordable while postpaid plans have been provided with additional free browsing hours.
Globe also recently announced that it has commercially launched its WiMAX (802.16e) service on the 2.5 Ghz band, one of the first and largest of its kind in Southeast Asia. This service is currently available in selected key areas in South Luzon, Visayas, and Mindanao, offering broadband data only and data bundled with voice packages for P795 and P995 per month at connection speed of up to 512 kbps.
“We are excited with the progress we have made on broadband to date. Our broadband expansion is on track and we have started to grab a higher share of the market growth.,” Mr. Cu added. “We look forward to introducing more service innovations that will deliver superior value and the best product experience for our subscribers,” Mr. Cu concluded.
Globe Telecom Press Release
Net income after tax was P4.0 billion, 17% above last year’s P3.4 billion. This quarter’s net income includes an after-tax gain of P398 million arising from an equipment exchange transaction with an equipment supplier. Excluding foreign exchange and mark-to-market gains and losses as well as the gain from the equipment exchange transaction, core net income grew 5% to P3.7 billion from P3.5 billion a year ago. Consolidated EBITDA margin was at 61% for the period
compared to 64% for the same period last year and 55% from last quarter.
The wireless business posted healthy subscriber growth with total SIM base expanding 21% year-on-year to 25.7 million subscribers. While net additions remained healthy, average revenue per subscriber declined as a result of continued multi-SIM usage and low usage levels of new subscribers.
Meanwhile, the Company’s broadband business continued to post strong growth, with over 287,000 broadband subscribers by quarter-end, more than double last year’s level. Subscribers of the Company’s fully mobile broadband service Globe Broadband Tattoo comprised almost 75% of this quarter’s net subscriber additions. With sustained double digit subscriber growth, broadband revenues rose 58% year-on-year to close the quarter at P640 million.
“We are encouraged by the continued growth of our overall business, especially considering the challenging environment against which it was achieved,” Ernest L. Cu, President and CEO of Globe Telecom, Inc. said. “Moving forward, we will remain focused on enhancing our services, strengthening our brand propositions and product offers, and improving our processes to compete effectively in this highly demanding and competitive market.,” said Mr. Cu.
To sustain its growth momentum, Globe introduced service innovations that are relevant to its customers’ needs, easy to use and affordable. During the quarter, Globe introduced a single, easy-to-recall access code “8888” for all its bulk and unlimited SMS and voice promos (Unlitxt, TodoText, Sulitxt, Everybodytxt, Unlicalls Nyt, Todo Tawag Magdamag, TxtOthers, and ITXT).
The Company also recently introduced a key service enhancement that allows Globe and TM subscribers to purchase Sulitxt and Everybodytxt load credits directly from the Company’s retailers, making it more convenient for subscribers to avail of these popular bulk SMS offers.
To drive subscriber acquisitions, Globe introduced Load Tipid Plans – a hybrid prepaid and postpaid plan – which allow subscribers to set a monthly limit on usage while retaining the flexibility to reload value through the usual channels once their limits have been reached. Also recently, the Company launched another pioneering service Globe DUO – an innovative service that combines a mobile and wireless landline service into one handset. DUO subscribers can
make unlimited calls to any landline within the same area code as well as mobile calls to other DUO subscribers, all for an incremental monthly service fee of P 399 on top of a postpaid plan.
For broadband, Globe re-launched its fully mobile broadband service as Globe Broadband Tattoo to appeal to the growing youth segment who require on-the-go broadband connections. The new Globe Broadband Tattoo service is available in prepaid and postpaid variants that offer connections of up to 2 Mbps. Prepaid kits have been made even more affordable while postpaid plans have been provided with additional free browsing hours.
Globe also recently announced that it has commercially launched its WiMAX (802.16e) service on the 2.5 Ghz band, one of the first and largest of its kind in Southeast Asia. This service is currently available in selected key areas in South Luzon, Visayas, and Mindanao, offering broadband data only and data bundled with voice packages for P795 and P995 per month at connection speed of up to 512 kbps.
“We are excited with the progress we have made on broadband to date. Our broadband expansion is on track and we have started to grab a higher share of the market growth.,” Mr. Cu added. “We look forward to introducing more service innovations that will deliver superior value and the best product experience for our subscribers,” Mr. Cu concluded.
Globe Telecom Press Release
SM Hits a Hundred Retail Outlets Nationwide with the Opening of Naga Stores
Philippine conglomerate SM Investments Corporation (SM) reported last May 6 that with the opening of an SM department store and an SM supermarket at the newly inaugurated SM City Naga in Camarines Sur on Friday, May 1, 2009, SM’s retail network has hit a landmark, now with a total of 100 stores. SM’s retail
network is composed of 34 SM department stores, 25 SM supermarkets, 14 SaveMore branches, 13 SM hypermarkets, and 14 Makro outlets.
SM’s retail business is divided into two main segments, the non-food group, which is principally SM department stores, and the food-group, composed of SM supermarkets, SaveMore stores, SM hypermarkets, and Makro outlets.
SM president Mr. Harley T. Sy said, “SM retail’s sustained expansion nationwide fits well with the country’s consistently robust and dynamic consumer sector. Domestic consumer spending, supported to a large extent by remittances from overseas Filipinos, continues to grow. Thus, with the opening of SM’s 100th retail outlet, we intend to further enhance our product and service delivery, for the benefit of the millions of consumers within the SM world.”
To be opened second week of May will be an SM department store at the Annex of SM City Rosales. And, for the rest of 2009, SM will open one more department store, one supermarket, eight SaveMore branches, and six hypermarkets.
network is composed of 34 SM department stores, 25 SM supermarkets, 14 SaveMore branches, 13 SM hypermarkets, and 14 Makro outlets.
SM’s retail business is divided into two main segments, the non-food group, which is principally SM department stores, and the food-group, composed of SM supermarkets, SaveMore stores, SM hypermarkets, and Makro outlets.
SM president Mr. Harley T. Sy said, “SM retail’s sustained expansion nationwide fits well with the country’s consistently robust and dynamic consumer sector. Domestic consumer spending, supported to a large extent by remittances from overseas Filipinos, continues to grow. Thus, with the opening of SM’s 100th retail outlet, we intend to further enhance our product and service delivery, for the benefit of the millions of consumers within the SM world.”
To be opened second week of May will be an SM department store at the Annex of SM City Rosales. And, for the rest of 2009, SM will open one more department store, one supermarket, eight SaveMore branches, and six hypermarkets.
Tuesday, April 28, 2009
SMDC Reports 30-Fold Increase in Q1 2009 Consolidated Profits of Php419m
SM Development Corporation (SMDC) reported a 30-fold increase in its first quarter 2009 consolidated net income to Php419 million coming from just Php14.0 million in 2008. Real estate operations continue to underpin the company's sharp growth, even with the recovery of the equities market, which tempered profits last year due to mark-to-market losses in SMDC's investment portfolio.
Net income from real estate operations surged 353% during the first quarter of 2009 to Php421million, from just Php93 million the previous year. SMDC’s gross profit from real estate sales reached Php615 million, for a 156% increase year on year. This resulted in a gross profit margin of 46%. EBITDA meanwhile, reached Php463 million, for an EBITDA margin of 35%.
Realized revenues from real estate operations jumped 131% to Php1.3 billion, compared to Php575 million in 2007. For the first quarter of 2009, SMDC sold a total of 1,021 residential units worth Php2.4 billion. Compared to the same period in 2008, the value of units sold increased by 109%.
Roger R. Cabuñag, SMDC President said, “We are highly encouraged by the robust performance of SMDC during the first quarter of the year. In a period that proves challenging to many due to the current global financial crisis, SMDC is surging ahead, recording sharp earnings growth and robust sales. This positive development reflects the trust and confidence that the market has on the SM name, coupled with the company's ability to deliver on its promise of five-star quality residences at affordable prices.”
SMDC has five on-going projects. Chateau Elysee, a six-cluster mid-rise condominium project in Parañaque City, is now in its fifth cluster, which is 30% complete. Mezza Residences across SM City Sta. Mesa is 95% complete with the remaining two towers due for turnover to homebuyers by the end of this year. Berkeley Residences in Katipunan Road across Miriam College is 31% complete, and Grass Residences beside SM North EDSA is 31% complete with its phase one. Lindenwood Residences, which is a residential subdivision in Muntinlupa City, is 99% complete.
Last year, SMDC broke ground for two more condominium projects. One is the Sea Residences near the Mall of Asia Complex in Pasay City, which is 7% complete and the other is Field Residences in Sucat, Parañaque City, which is approximately 20% complete. Both these projects are enjoying brisk sales.
For 2009, SMDC is set to launch the Princeton Residences, which is near the Gilmore LRT-2 Station along Aurora Boulevard in Quezon City; the Jupiter Residences along Jupiter Street in Makati City; the Tree Residences along Felix Avenue in Cainta, Rizal; and the Wind Residences in Tagaytay City.
Source SMDC Press Release, April 29, 2009
Net income from real estate operations surged 353% during the first quarter of 2009 to Php421million, from just Php93 million the previous year. SMDC’s gross profit from real estate sales reached Php615 million, for a 156% increase year on year. This resulted in a gross profit margin of 46%. EBITDA meanwhile, reached Php463 million, for an EBITDA margin of 35%.
Realized revenues from real estate operations jumped 131% to Php1.3 billion, compared to Php575 million in 2007. For the first quarter of 2009, SMDC sold a total of 1,021 residential units worth Php2.4 billion. Compared to the same period in 2008, the value of units sold increased by 109%.
Roger R. Cabuñag, SMDC President said, “We are highly encouraged by the robust performance of SMDC during the first quarter of the year. In a period that proves challenging to many due to the current global financial crisis, SMDC is surging ahead, recording sharp earnings growth and robust sales. This positive development reflects the trust and confidence that the market has on the SM name, coupled with the company's ability to deliver on its promise of five-star quality residences at affordable prices.”
SMDC has five on-going projects. Chateau Elysee, a six-cluster mid-rise condominium project in Parañaque City, is now in its fifth cluster, which is 30% complete. Mezza Residences across SM City Sta. Mesa is 95% complete with the remaining two towers due for turnover to homebuyers by the end of this year. Berkeley Residences in Katipunan Road across Miriam College is 31% complete, and Grass Residences beside SM North EDSA is 31% complete with its phase one. Lindenwood Residences, which is a residential subdivision in Muntinlupa City, is 99% complete.
Last year, SMDC broke ground for two more condominium projects. One is the Sea Residences near the Mall of Asia Complex in Pasay City, which is 7% complete and the other is Field Residences in Sucat, Parañaque City, which is approximately 20% complete. Both these projects are enjoying brisk sales.
For 2009, SMDC is set to launch the Princeton Residences, which is near the Gilmore LRT-2 Station along Aurora Boulevard in Quezon City; the Jupiter Residences along Jupiter Street in Makati City; the Tree Residences along Felix Avenue in Cainta, Rizal; and the Wind Residences in Tagaytay City.
Source SMDC Press Release, April 29, 2009
RFM Sustains Income Growth to P245 M
Diversified food company RFM Corporation once again displayed its resilience amidst the economic slowdown, with net income increasing to P245 million or about five percent higher than the previous period’s P234 million on the back of a 23 percent growth in sales.
In a disclosure to the Phil. Stock Exchange and Securities and Exchange Commission, RFM President and CEO Jose Concepcion III said that “we don’t seem to see any sign of recession. RFM sustained its profitability through various cost reduction measures and stronger sales from our branded food group and this has led to a larger absolute margin base”.
RFM focused on branded consumer products, driving consolidated net sales to P7.5 billion, from P6.1 billion the previous year. It prioritized value creation for its consumers by introducing innovative, relevant and affordable products.
Concepcion added that “stronger sales, ranging from 30% to over 60% growth rates, were achieved by the branded food and beverage businesses. Sales of beverage products increased with the launching of more Sunkist juice and iced-tea flavors in more convenient PET bottles. The launch of Vitwater as a first-mover in the vitamin-enriched water category also contributed remarkably to the growth with very strong consumer acceptance. Meanwhile, Selecta milk growth was led by the Fortified milk product lines which grew by over 80%”.
Concepcion cited innovations from its new production facilities. He said that “Swift Meats launched Chicken Franks, Luncheon Meat, and Meaty Corned Beef, given the versatility of its newly renovated meat plant, which also helped push stronger sales in the second half of the year. This was complemented by huge growth in Fiesta pasta sales which are now coming out from our new and modern pasta plant in Pasig. The sustained growth has made Fiesta the national market
leader in spaghetti as of year-end”.
“We expect the growth momentum to continue as we approach the stronger months and as we put more marketing support in building our brands”, Concepcion added. The disclosure mentioned that Selecta, RFM’s ice cream joint venture with Unilever, likewise posted an impressive 3rd year of double-digit growth with the successful launch of Family Pack, Supreme and Limited Edition. Concepcion said that “since we bought the Selecta brand 20 years ago, it has steadily grown to become the number one ice cream brand in the country today. Our successful joint venture partnership with Unilever has helped strengthen our position in the market, and this was complemented by the entrepreneurial team of Selecta led by my brother John Concepcion. Selecta ice cream now has a solid 54% market share. Ice Cream exports also grew driven by volumes from the Middle East market”.
Source: RFM Press Release Dated April 21, 2009
In a disclosure to the Phil. Stock Exchange and Securities and Exchange Commission, RFM President and CEO Jose Concepcion III said that “we don’t seem to see any sign of recession. RFM sustained its profitability through various cost reduction measures and stronger sales from our branded food group and this has led to a larger absolute margin base”.
RFM focused on branded consumer products, driving consolidated net sales to P7.5 billion, from P6.1 billion the previous year. It prioritized value creation for its consumers by introducing innovative, relevant and affordable products.
Concepcion added that “stronger sales, ranging from 30% to over 60% growth rates, were achieved by the branded food and beverage businesses. Sales of beverage products increased with the launching of more Sunkist juice and iced-tea flavors in more convenient PET bottles. The launch of Vitwater as a first-mover in the vitamin-enriched water category also contributed remarkably to the growth with very strong consumer acceptance. Meanwhile, Selecta milk growth was led by the Fortified milk product lines which grew by over 80%”.
Concepcion cited innovations from its new production facilities. He said that “Swift Meats launched Chicken Franks, Luncheon Meat, and Meaty Corned Beef, given the versatility of its newly renovated meat plant, which also helped push stronger sales in the second half of the year. This was complemented by huge growth in Fiesta pasta sales which are now coming out from our new and modern pasta plant in Pasig. The sustained growth has made Fiesta the national market
leader in spaghetti as of year-end”.
“We expect the growth momentum to continue as we approach the stronger months and as we put more marketing support in building our brands”, Concepcion added. The disclosure mentioned that Selecta, RFM’s ice cream joint venture with Unilever, likewise posted an impressive 3rd year of double-digit growth with the successful launch of Family Pack, Supreme and Limited Edition. Concepcion said that “since we bought the Selecta brand 20 years ago, it has steadily grown to become the number one ice cream brand in the country today. Our successful joint venture partnership with Unilever has helped strengthen our position in the market, and this was complemented by the entrepreneurial team of Selecta led by my brother John Concepcion. Selecta ice cream now has a solid 54% market share. Ice Cream exports also grew driven by volumes from the Middle East market”.
Source: RFM Press Release Dated April 21, 2009
Manila Water In Joint Venture for Boracay Water Project
Manila Water Company, Inc. (MWC) has formally signed a joint venture agreement with the Philippine Tourism Authority (PTA) for the design, financing, construction and operation of the Boracay water supply and sewerage system.
In a disclosure to the Philippine Stock Exchange, Glorina de Castro of Manila Water said the agreement officially recognizes Manila Water as PTA's private partner in the formation of a joint venture company for the operation, management, rehabilitation, expansion, and financing of water and sewerage services; and operation and maintenance of the existing drainage system in Boracay Island. The agreement is in accordance with the National Economic and Development Authority's Joint Venture (JV) guidelines for Government Owned and Controlled Corporations.
The joint venture company will enter into a 25-year concession agreement with the PTA.
In a disclosure to the Philippine Stock Exchange, Glorina de Castro of Manila Water said the agreement officially recognizes Manila Water as PTA's private partner in the formation of a joint venture company for the operation, management, rehabilitation, expansion, and financing of water and sewerage services; and operation and maintenance of the existing drainage system in Boracay Island. The agreement is in accordance with the National Economic and Development Authority's Joint Venture (JV) guidelines for Government Owned and Controlled Corporations.
The joint venture company will enter into a 25-year concession agreement with the PTA.
PhilWeb doubles Net Income for first quarter 2009
PhilWeb Corporation, the Philippines’ first listed Internet company, more than doubled its net income for the first quarter of 2009, showing continued strength in its core gaming businesses. "Our Net Income was up 108% vs. the same quarter last year," said Dennis Valdes, president of the company, "or a total of Php96 million vs. Php46.2 million. That's more than double the previous year."
PhilWeb had previously reported that 2008 was the best year ever for the company, with monthly records set for total Gross Bets of Php5.5 billion and Casino Win of Php167 million in their Pagcor e-Games Cafe network alone. Other business lines, like Basketball Jackpot and mobile games such as Premyo Sa Resibo, also showed strong results.
"We had an excellent first three months this year," continued Valdes. "January beat December, and February would have beaten January if not for the fact that it has three days less, and now, March has reset both these records in our PEGS Cafes. Gross Bets for March alone totaled Php5.7 billion and Casino Win was Php194 million. At this pace, our company's revenue from the cafe network is running at 108% compared to the same period last year."
Total PhilWeb Revenue, inclusive of all businesses, totaled Php167.6 million for the first quarter of 2009, 89% higher than the Php88.8 million generated for the same period last year. Valdes noted that growth was coming from all three business lines of the company. "We now have 131 PEGS Cafes, as opposed to 121 at the beginning of the year. Aside from the 10 opened, we are also expediting the opening of 50 more cafes we have in our pipeline. Basketball Jackpot has a newly launched variant, which we call NBA Ending. This will allow our aficionados to place bets during the NBA playoffs that are happening right now. And Premyo Sa Resibo continues its support for the BIR's campaign to get consumers to ask for their official receipts."
Source: Philweb Press Release Dated April 21, 2009
PhilWeb had previously reported that 2008 was the best year ever for the company, with monthly records set for total Gross Bets of Php5.5 billion and Casino Win of Php167 million in their Pagcor e-Games Cafe network alone. Other business lines, like Basketball Jackpot and mobile games such as Premyo Sa Resibo, also showed strong results.
"We had an excellent first three months this year," continued Valdes. "January beat December, and February would have beaten January if not for the fact that it has three days less, and now, March has reset both these records in our PEGS Cafes. Gross Bets for March alone totaled Php5.7 billion and Casino Win was Php194 million. At this pace, our company's revenue from the cafe network is running at 108% compared to the same period last year."
Total PhilWeb Revenue, inclusive of all businesses, totaled Php167.6 million for the first quarter of 2009, 89% higher than the Php88.8 million generated for the same period last year. Valdes noted that growth was coming from all three business lines of the company. "We now have 131 PEGS Cafes, as opposed to 121 at the beginning of the year. Aside from the 10 opened, we are also expediting the opening of 50 more cafes we have in our pipeline. Basketball Jackpot has a newly launched variant, which we call NBA Ending. This will allow our aficionados to place bets during the NBA playoffs that are happening right now. And Premyo Sa Resibo continues its support for the BIR's campaign to get consumers to ask for their official receipts."
Source: Philweb Press Release Dated April 21, 2009
Wednesday, March 11, 2009
AYALA Land, Manila Water Announce New Presidents
Fernando Zobel de Ayala, Chairman of Ayala Land, Inc. and Manila Water Corp. announced last March 2 several movements in both companies’ senior management line-up effective after the respective companies’ annual stockholders’ meetings in April. The movements have been
approved by the respective companies’ Board of Directors:
Zobel said, Jim Ayala, who "led Ayala Land (ALI) to unprecedented growth and profitability, will rejoin the holding company, Ayala Corporation, as Senior Managing Director and a member of its Group Management Committee.”
Under Ayala's leadership, ALI has achieved 130% revenue growth and 80% earnings growth over five years. It has increased residential revenues 2.5 times on the back of a revamped portfolio of market-leading products and brands; doubled mall and office gross leasable area with exciting new malls and office campuses; successfully launched two new sustainability oriented cities, Bonifacio Global City and Nuvali; and made significant forays into new business lines, such as leisure and tourism, and new geographies, such as Thailand and China.
Zobel further adds, “The Ayala Group is entering an unprecedented global economic environment with a strong balance sheet, and Jim’s strategic expertise, executive track record and M&A experience will be useful in the Group’s pursuit of new opportunities.”
Antonino T. Aquino, currently President of Manila Water Corp, will succeed Ayala as President of ALI. Aquino has been with the Ayala Group for the past 28 years in various capacities, and was formerly a Senior Vice President of Ayala Land.
Zobel said “At Manila Water, Tony Aquino has presided over one of the most remarkable transformations of a public service company.” Under his leadership, Manila Water was able to upgrade Manila’s East Zone’s water distribution
system which now supplies 24 hour water supply to more than 5 million people from less than a million people with 24/7 water supply in 1997. Shareholder value increased more than 10 times during the same period.
Zobel further notes, “Under his leadership, Tony Aquino has made MWC one of the most awarded and celebrated success stories in Philippine corporate history. Tony now returns to ALI with a mandate to keep its leadership position in a rapidly changing world while deepening its reputation for large-scale, innovative, sustainable communities.”
Rene D. Almendras, currently Group Director of Business at Manila Water will succeed Aquino as President of Manila Water. Almendras joined the Ayala Group in 2001 as Head of ALI’s Visayas-Mindanao Group and concurrent President of two listed companies, Cebu Holdings, Inc. and Cebu Property Ventures and Development, Corp. He also served as Group Head of Sales and Marketing at ALI, eventually setting up and concurrently heading the Operations Transformation Group and Strategic Procurement prior to moving on to MWC in 2007.
At MWC, Almendras took on the Company’s largest operating unit as Group Head
for Business, which serves as the direct link of MWC to its customer base, and has done extremely well. Over the past two years, he has instituted major structural changes to better service MWC customers and introduced new processes to increase productivity and efficiency. These have contributed in a major way to the achievement of the 100% customer satisfaction rating in the Company’s latest customer satisfaction survey.
Zobel concludes, “Ayala takes pride in its deep bench of senior executives and are very fortunate to count Jim, Tony and Rene among them. Through these movements, we are able to strengthen the holding company, enable our operating companies to continue on their trajectory of performance, and provide our executives with new challenges and opportunities.”
Source: ALI Press Release dated March 2, 2009
approved by the respective companies’ Board of Directors:
- Jaime I. Ayala, current Ayala Land President, will return to Ayala Corporation
- Antonino T. Aquino current Manila Water Corp President, will take over Ayala Land as President
- Rene Almendras will take over as Manila Water President
Zobel said, Jim Ayala, who "led Ayala Land (ALI) to unprecedented growth and profitability, will rejoin the holding company, Ayala Corporation, as Senior Managing Director and a member of its Group Management Committee.”
Under Ayala's leadership, ALI has achieved 130% revenue growth and 80% earnings growth over five years. It has increased residential revenues 2.5 times on the back of a revamped portfolio of market-leading products and brands; doubled mall and office gross leasable area with exciting new malls and office campuses; successfully launched two new sustainability oriented cities, Bonifacio Global City and Nuvali; and made significant forays into new business lines, such as leisure and tourism, and new geographies, such as Thailand and China.
Zobel further adds, “The Ayala Group is entering an unprecedented global economic environment with a strong balance sheet, and Jim’s strategic expertise, executive track record and M&A experience will be useful in the Group’s pursuit of new opportunities.”
Antonino T. Aquino, currently President of Manila Water Corp, will succeed Ayala as President of ALI. Aquino has been with the Ayala Group for the past 28 years in various capacities, and was formerly a Senior Vice President of Ayala Land.
Zobel said “At Manila Water, Tony Aquino has presided over one of the most remarkable transformations of a public service company.” Under his leadership, Manila Water was able to upgrade Manila’s East Zone’s water distribution
system which now supplies 24 hour water supply to more than 5 million people from less than a million people with 24/7 water supply in 1997. Shareholder value increased more than 10 times during the same period.
Zobel further notes, “Under his leadership, Tony Aquino has made MWC one of the most awarded and celebrated success stories in Philippine corporate history. Tony now returns to ALI with a mandate to keep its leadership position in a rapidly changing world while deepening its reputation for large-scale, innovative, sustainable communities.”
Rene D. Almendras, currently Group Director of Business at Manila Water will succeed Aquino as President of Manila Water. Almendras joined the Ayala Group in 2001 as Head of ALI’s Visayas-Mindanao Group and concurrent President of two listed companies, Cebu Holdings, Inc. and Cebu Property Ventures and Development, Corp. He also served as Group Head of Sales and Marketing at ALI, eventually setting up and concurrently heading the Operations Transformation Group and Strategic Procurement prior to moving on to MWC in 2007.
At MWC, Almendras took on the Company’s largest operating unit as Group Head
for Business, which serves as the direct link of MWC to its customer base, and has done extremely well. Over the past two years, he has instituted major structural changes to better service MWC customers and introduced new processes to increase productivity and efficiency. These have contributed in a major way to the achievement of the 100% customer satisfaction rating in the Company’s latest customer satisfaction survey.
Zobel concludes, “Ayala takes pride in its deep bench of senior executives and are very fortunate to count Jim, Tony and Rene among them. Through these movements, we are able to strengthen the holding company, enable our operating companies to continue on their trajectory of performance, and provide our executives with new challenges and opportunities.”
Source: ALI Press Release dated March 2, 2009
Sunday, March 1, 2009
Philex Now A Gold Mine
Philex Mining Corporation, the Philippines' largest mining company, is now more a gold mine than a copper mine, according to Dr. Walter W. Brown, Philex Chairman and Chief Executive Officer.
Since the price of gold has been testing US$1,000 per ounce recently, and copper prices have seen weak levels in the last few months as a result of the declining demand in the housing market and automobile sectors in the US and European community, the value of Philex concentrate shipments of golg and copper have reversed with the latest shipments now showing that gold accounts for 72% of the value of the concentrates while copper accounts for only 28%
Since the last quarter of 2008 up to today, the gold values in the concentrate shipments of Philex have consistently outstripped the copper values. This trend is expected to remain as the world recession continues to hit the entire developed world and has begun to spill over to the developing world. Gold, which has traditionally been regarded as a safe haven during turbulent economic times, has been testing new price highs while copper, which is very dependent on the housing and automobile markets have seen prices decline by more than half since its highs in 2008. Thus, Philex is a good natural hedge against base metal prices because gold prices are expected to stay up during this financial turmoil. As the financial turmoil subsides, gold prices are expected to soften while copper prices will firm us as the world recovers from recesssion, Brown pointed out.
Philex is currently drilling and developing only gold and copper deposits with gold values(in dollars per ton of ore) higher than the dollar value of the copper in the ore. Typically, these gold/copper projects take at least three years to develop.
Recently the Board of Philex Mining declared a stock dividend of 25% to be presented for shareholder's approval at the special meeting to be help on April 21, 2009.
Source: Philex Press Release dated Feb 25, 2009
Since the price of gold has been testing US$1,000 per ounce recently, and copper prices have seen weak levels in the last few months as a result of the declining demand in the housing market and automobile sectors in the US and European community, the value of Philex concentrate shipments of golg and copper have reversed with the latest shipments now showing that gold accounts for 72% of the value of the concentrates while copper accounts for only 28%
Since the last quarter of 2008 up to today, the gold values in the concentrate shipments of Philex have consistently outstripped the copper values. This trend is expected to remain as the world recession continues to hit the entire developed world and has begun to spill over to the developing world. Gold, which has traditionally been regarded as a safe haven during turbulent economic times, has been testing new price highs while copper, which is very dependent on the housing and automobile markets have seen prices decline by more than half since its highs in 2008. Thus, Philex is a good natural hedge against base metal prices because gold prices are expected to stay up during this financial turmoil. As the financial turmoil subsides, gold prices are expected to soften while copper prices will firm us as the world recovers from recesssion, Brown pointed out.
Philex is currently drilling and developing only gold and copper deposits with gold values(in dollars per ton of ore) higher than the dollar value of the copper in the ore. Typically, these gold/copper projects take at least three years to develop.
Recently the Board of Philex Mining declared a stock dividend of 25% to be presented for shareholder's approval at the special meeting to be help on April 21, 2009.
Source: Philex Press Release dated Feb 25, 2009
Asean Stock Exchanges Agree to Electronic Linkage
THE PHILIPPINE STOCK EXCHANGE (PSE) announced in a press release that it has entered into a memorandum of understanding (MOU) with the other ASEAN Exchanges to create a trading linkage allowing investors from the ASEAN countries to buy or sell ASEAN-listed securities through their local brokers. The MOU was signed last month during the 7th ASEAN Exchanges CEOs Meeting in Bangkok, Thailand.
The electronic linkage project will commence with the creation of an electronic linkage currently referred to as the “ASEAN Common Exchange Gateway” will initially link Bursa Malaysia (BM) and The Stock Exchange of Thailand (SET) followed by the Singapore Exchange, Ltd. and the Philippine Stock Exchange, Inc.
The linkage will also include Indonesia Stock Exchange (IDX).
The gateway, expected to be launched in 2010, will be an entry point to be set up in each exchange for brokers and investors to trade securities listed on any of the ASEAN exchanges.
Mr. Francis Lim, PSE president and chief executive officer said “We welcome with much enthusiasm this project to set up an electronic linkage among the ASEAN Exchanges. Not only will the project mean a more meaningful partnership with our ASEAN counterparts but it will also lay the foundation for an integrated and harmonized ASEAN stock market.”
Lim cited the benefits of an integrated and harmonized market for securities among the ASEAN Exchanges, saying that this trading linkage will position the ASEAN as an asset class and a viable investment destination.
Lim added: “This linkage provides exciting opportunities for our market participants to expand their investment horizon to ASEAN markets. Any Filipino investor can now buy Indonesian, Malaysian, Thai and Singaporean securities with the same ease as buying Philippine securities and vice-versa. The trading linkage can also provide opportunities for investors outside ASEAN to easily trade ASEAN securities.”
Lim concludes: “This project is not just an integration of the ASEAN stock markets, but more importantly, reflects our vision of taking the PSE onto the global platform of a wider investment community. With this intra-ASEAN initiative, we’re taking along with us the growth of our listed companies, investors, market participants as well as the economy of the ASEAN countries.”
The electronic linkage project will commence with the creation of an electronic linkage currently referred to as the “ASEAN Common Exchange Gateway” will initially link Bursa Malaysia (BM) and The Stock Exchange of Thailand (SET) followed by the Singapore Exchange, Ltd. and the Philippine Stock Exchange, Inc.
The linkage will also include Indonesia Stock Exchange (IDX).
The gateway, expected to be launched in 2010, will be an entry point to be set up in each exchange for brokers and investors to trade securities listed on any of the ASEAN exchanges.
Mr. Francis Lim, PSE president and chief executive officer said “We welcome with much enthusiasm this project to set up an electronic linkage among the ASEAN Exchanges. Not only will the project mean a more meaningful partnership with our ASEAN counterparts but it will also lay the foundation for an integrated and harmonized ASEAN stock market.”
Lim cited the benefits of an integrated and harmonized market for securities among the ASEAN Exchanges, saying that this trading linkage will position the ASEAN as an asset class and a viable investment destination.
Lim added: “This linkage provides exciting opportunities for our market participants to expand their investment horizon to ASEAN markets. Any Filipino investor can now buy Indonesian, Malaysian, Thai and Singaporean securities with the same ease as buying Philippine securities and vice-versa. The trading linkage can also provide opportunities for investors outside ASEAN to easily trade ASEAN securities.”
Lim concludes: “This project is not just an integration of the ASEAN stock markets, but more importantly, reflects our vision of taking the PSE onto the global platform of a wider investment community. With this intra-ASEAN initiative, we’re taking along with us the growth of our listed companies, investors, market participants as well as the economy of the ASEAN countries.”
Wednesday, February 11, 2009
Berong Nickel Stops Production
Berong Nickel Corporation production dipped down to only 16,279 tons of ore for the fourth quarter of 2008.Production was reduced in response to the increasing stock levels, deteriorating markets and onset of the non-shipping window.
In October to February, laterite ore shipments are difficult due to rough sea conditions, making loading unsafe.
In a disclosure to the Philippine Stock Exchange, Atlas Consolidated Mining and Development Corporation reported that a total of 47,995 wet metric tons of nickel laterite ore was shipped to BHP Billiton in Australia last October at an average grade of 1.54% nickel (approximately 492 tons contained nickel on a dry basis) and 34.13% iron. Production and shipping volumes for the full year 2008 was 476,850 tons (53,000 tons lower than 2007).
The Chinese market for laterite ore declined and is expected to remain depressed well into 2009. This is an expected response to the continued depressed LME nickel prices. Anecdotal evidences suggest more than eight million tons of laterite ore currently stockpiled at Chinese ports.
The markets for both the blast furnace process and the electric arc furnace process have been impacted with reports that over 90% of the production capacity have been shut down. Chinese imports for the last quarter are expected to be less than 1.5 million tons, a large portion of which is low grade nickel laterite( <0.9% Nickel) with high iron content which substitutes for higher priced iron ore feed.
Berong is partially insulated from bad Chinese market conditions by BHP Billiton ore supply contract, which provides for supply of up to 500,000 tons per annum of nickel laterite ore until 2013. Negotiations to increase the sales volume to 1MM tons per annum were unsuccessful, with BHP Billiton allocating only 400,000 tons for the entire 2009. Half of this volume can be supplied from presently existing stockpiles, which means full scale mining operations can be deferred until the second half of 2009.
With more than enough stocks to meet the initial shipments to BHP Billiton, all
production activity at Berong has ceased for the time being. Less than 50 people are currently employed at the mine site. The downsizing left more than 600 employees and contractors unemployed in a region with little alternative opportunities.
BNC continues to provide essential services to the community, including operation of the water treatment plant, a medical facility and supply of teachers and educational scholarships.
In October to February, laterite ore shipments are difficult due to rough sea conditions, making loading unsafe.
In a disclosure to the Philippine Stock Exchange, Atlas Consolidated Mining and Development Corporation reported that a total of 47,995 wet metric tons of nickel laterite ore was shipped to BHP Billiton in Australia last October at an average grade of 1.54% nickel (approximately 492 tons contained nickel on a dry basis) and 34.13% iron. Production and shipping volumes for the full year 2008 was 476,850 tons (53,000 tons lower than 2007).
The Chinese market for laterite ore declined and is expected to remain depressed well into 2009. This is an expected response to the continued depressed LME nickel prices. Anecdotal evidences suggest more than eight million tons of laterite ore currently stockpiled at Chinese ports.
The markets for both the blast furnace process and the electric arc furnace process have been impacted with reports that over 90% of the production capacity have been shut down. Chinese imports for the last quarter are expected to be less than 1.5 million tons, a large portion of which is low grade nickel laterite( <0.9% Nickel) with high iron content which substitutes for higher priced iron ore feed.
Berong is partially insulated from bad Chinese market conditions by BHP Billiton ore supply contract, which provides for supply of up to 500,000 tons per annum of nickel laterite ore until 2013. Negotiations to increase the sales volume to 1MM tons per annum were unsuccessful, with BHP Billiton allocating only 400,000 tons for the entire 2009. Half of this volume can be supplied from presently existing stockpiles, which means full scale mining operations can be deferred until the second half of 2009.
With more than enough stocks to meet the initial shipments to BHP Billiton, all
production activity at Berong has ceased for the time being. Less than 50 people are currently employed at the mine site. The downsizing left more than 600 employees and contractors unemployed in a region with little alternative opportunities.
BNC continues to provide essential services to the community, including operation of the water treatment plant, a medical facility and supply of teachers and educational scholarships.
Tuesday, February 3, 2009
Zamboanga 2008 Agriculture Production Down. Corn Dropped 17%
The Philippines' National Census and Statistics Board reported lower agricultural production in Zamboanga peninsula for 2008: palay dropped 0.44%, camote by 5%, corn by 17.24%, abaca by 19%. Higher production was reported for calamansi (9.72%) and cassava (5.57%).
Total palay production output during January to December 2008 for Zamboanga Peninsula decreased by about 0.44 percent or 2,449 metric tons(MT) lower compared to the same period last year (CY 2007) due to decrease in available area for harvesting by about 2.0 percent.
This decrease is due to the damage caused by a flash flood during the 4th quarter of 2008 particularly in Salug valley area in Zamboanga del Sur. Zamboanga Sibugay also suffered from a flash flood last March 8, 2008 that affected the areas of about 499 hectares in Imelda, Diplahan, Siay and partly in Payao.
Tropical depressions Buchoy and Frank also damaged 32 hectares in mid-year, affecting palay production in Zamboanga City.
Total corn production output in Zamboanga Peninsula for January-December 2008 dipped 17.24 percent or 37,870MT. lower compared last year (CY 2007) due to continuous rainfall experienced by almost all provinces in the region, particularly in the province of Zamboanga Sibugay in which 186 hectares were flooded during the first quarter of 2008.
Harvest area also decreased by 16.25 percent due to significant number of marginal farmers temporarily stopped planting corn attributed to high cost of fertilizers. Some farmers shifted to cash crops that can be grown without fertilizer application like Cassava, Mongo and Peanuts.
The selected crops production of Zamboanga Peninsula for calendar year 2008 registered a slight decrease of 1.41 percent or 32,612.89MT. lower compared to the preceding year.
Highlights:
Source: NCSB Press Release
Total palay production output during January to December 2008 for Zamboanga Peninsula decreased by about 0.44 percent or 2,449 metric tons(MT) lower compared to the same period last year (CY 2007) due to decrease in available area for harvesting by about 2.0 percent.
This decrease is due to the damage caused by a flash flood during the 4th quarter of 2008 particularly in Salug valley area in Zamboanga del Sur. Zamboanga Sibugay also suffered from a flash flood last March 8, 2008 that affected the areas of about 499 hectares in Imelda, Diplahan, Siay and partly in Payao.
Tropical depressions Buchoy and Frank also damaged 32 hectares in mid-year, affecting palay production in Zamboanga City.
Total corn production output in Zamboanga Peninsula for January-December 2008 dipped 17.24 percent or 37,870MT. lower compared last year (CY 2007) due to continuous rainfall experienced by almost all provinces in the region, particularly in the province of Zamboanga Sibugay in which 186 hectares were flooded during the first quarter of 2008.
Harvest area also decreased by 16.25 percent due to significant number of marginal farmers temporarily stopped planting corn attributed to high cost of fertilizers. Some farmers shifted to cash crops that can be grown without fertilizer application like Cassava, Mongo and Peanuts.
The selected crops production of Zamboanga Peninsula for calendar year 2008 registered a slight decrease of 1.41 percent or 32,612.89MT. lower compared to the preceding year.
Highlights:
- Abaca dropped 19.92 percent due to lack of striping machine for marginal area, particularly in the province of Zamboanga Sibugay.
- Camote dropped 5.30 percent due to excessive rainfall during the 3rd and 4th quarter of 2008 in the province of Zamboanga del Sur.
- Coconut w/ husk (Matured and Young) dropped by 1.69 percent due to lower yield attributed by long dry spell experienced in some parts of the region beginning 2007.
- Mango dropped in production due to excessive rain causing failure of artificial induction to produce fruits.
- Rubber reduces its volume of production due to defoliations, in some parts of Zamboanga del Sur during the 4th quarter of 2008.
- Calamansi posted an increase of 9.72 due to demand of juice making and processing in both Zamboanga Sibugay and Zamboanga City.
- Banana and Cabbage increased 2.55 percent and 0.53 percent, respectively due to demand and good market value.
- Cassava increased 5.57 percent due increase in area planted, plus support of the San Miguel Corporation and Local Government Units (LGU’s).
Source: NCSB Press Release
Zamboanga 2008 Agriculture Production Up 5.5%
The Philippines' National Census and Statistics Board reported 5.5% higher aquaculture production in Zamboanga peninsula for 2008, with Zamboanga del Sur posting the highest increase of 17.67 percent, due to the unloading of some fishing boats coming from Zamboanga Sibugay province.
Aquaculture production of Zamboanga Peninsula rose mainly due to increase in area harvested and production of seaweeds. Farmers shifted from planting to fishing due to higher income potential, and increase support of the Local Government Units and Bureau of Fisheries and Aquatic Resources (BFAR) in the region.
The production output of commercial fisheries sector in Zamboanga Peninsula went up slightly by 5.49 percent or 33,625.76 MT. higher compared to the same period last year.
The municipal fisheries sector in Zamboanga Peninsula showed 5.52 percent or 6,594.9 MT. higher compared last year. Three provinces contributed to the increased with Zamboanga City posted the highest by 36.93 percent due to the abundance of some pelagic fishes and the distribution by BFAR of fishing gears to some fisher folk and less encroachment of commercial fishing vessels in municipal water.
Source: NCSB Press Release
Aquaculture production of Zamboanga Peninsula rose mainly due to increase in area harvested and production of seaweeds. Farmers shifted from planting to fishing due to higher income potential, and increase support of the Local Government Units and Bureau of Fisheries and Aquatic Resources (BFAR) in the region.
The production output of commercial fisheries sector in Zamboanga Peninsula went up slightly by 5.49 percent or 33,625.76 MT. higher compared to the same period last year.
The municipal fisheries sector in Zamboanga Peninsula showed 5.52 percent or 6,594.9 MT. higher compared last year. Three provinces contributed to the increased with Zamboanga City posted the highest by 36.93 percent due to the abundance of some pelagic fishes and the distribution by BFAR of fishing gears to some fisher folk and less encroachment of commercial fishing vessels in municipal water.
Source: NCSB Press Release
GLOBE Telecom Posts Record High Revenues in 4Q 2008
Manila. Feb 3, 2009. Globe Telecom recorded its highest quarterly revenue performance in the fourth quarter of 2008 with service revenues of P16.3 billion, up 5% quarter-on-quarter and surpassing the previous best of P16.1 billion from the same period in 2007.
In 4Q 2008, Globe maintained its momentum in wireless subscriber acquisitions by adding one million SIMs, ending the year with a total subscriber base of 24.7 million, up 22% from a year ago. Touch Mobile (TM), Globe's mass market brand, led the growth, accounting for 70% of the 4.4 million net additions in 2008, bringing in more than 3 million incremental SIMs. The record performance was driven by strong holiday demand, spurred by compelling mobile and broadband offers launched in the fourth quarter.
Globe also registered its strongest broadband subscriber take-up in 4Q 2008, driven by healthy demand for its wireless broadband offer. This period’s net additions of about 55,000 exceeded the performance of the first three quarters of the year, enabling Globe to close the year with a broadband subscriber base of 234,000, almost double that of 2007.
The continued expansion of the broadband and corporate data businesses helped cushion the impact of the softness in wireless revenues. Full year consolidated revenues of P62.9 billion were flat compared to 2007 due to the combined effects of a weaker macro-environment and more intense market competition. Wireless service revenues declined by 1% to P55.6 billion from previous year’s P56.4 billion, while Innove wireline revenues improved by 7% to P7.3 billion from P6.8 billion in 2007.
Gerardo C. Ablaza, Jr., President and CEO of Globe Telecom, Inc said “Our strong topline performance in the fourth quarter enabled us to regain some of the ground that we lost in the early part of the year. This also gives us momentum going into 2009, even as we brace ourselves for a more challenging year ahead. ...We are encouraged by the resilient growth of both our mobile and broadband subscriber base, and remain committed to delivering products and services that serve the needs of our subscribers at affordable prices.”
Amidst rising consumer prices and stretched household budgets, Globe introduced various service offerings that complement its unlimited texting packages and its unique per-second voice call offer. In the fourth quarter, Globe launched Tawag236 which allows Globe prepaid and postpaid subscribers to make up to 20 minutes of local calls for only P20. It also introduced UnliCalls Nyt which enables Globe and TM prepaid subscribers to log in unlimited voice minutes at off-peak hours for only P20 and P15, respectively. Both promo offerings cover Globe-to-TM and TM-to-Globe calls with the integration of TM’s subscribers to Globe’s network in mid-2008. For the OFW community, following the successful launch of its TipIDD IDD card, Globe introduced a P25 denomination card. TipIDD offers discounted IDD rates to 15 popular destinations.
Globe conducted a series of 3-Day Sale events in major malls to drive subscriber acquisitions. Globe showcased integrated mobile and broadband packages, Barkada Deals for phone kits, as well as affordable payment schemes for the Apple iPhone 3G. Globe opened up broadband to the wider market by bringing down the cost of modems from P4,500 to P2,500. With the lowered entry costs and with the introduction of a prepaid variant in the third quarter, customer take-up for its Visibility wireless broadband service significantly increased, contributing 60% of the fourth quarter’s net additions for the broadband business.
“Demand for both our fixed and mobile broadband services has been very positive and has exceeded our expectations. We expect broadband growth to continue into 2009 with the increasing affordability of the service and the data devices,” Mr. Ablaza added. “For 2009, our objective is to build on the learnings of 2008, sustain our fourth quarter gains and step up growth for all our businesses. While we will adapt to changes in near-term demand with the slowing economy, we will continue to invest and set our sights on the long-term,” Mr. Ablaza concluded.
Globe reaffirmed its commitment to its dividend policy of distributing 75% of prior year’s net income and to achieving an optimum capital structure. In its meeting today, the Board of Directors declared the first semi-annual cash dividend of P32 per common share, payable to shareholders of record as of February 17, 2009. A total of P4.2 billion in dividends will be paid on March 10, 2009.
In 4Q 2008, Globe maintained its momentum in wireless subscriber acquisitions by adding one million SIMs, ending the year with a total subscriber base of 24.7 million, up 22% from a year ago. Touch Mobile (TM), Globe's mass market brand, led the growth, accounting for 70% of the 4.4 million net additions in 2008, bringing in more than 3 million incremental SIMs. The record performance was driven by strong holiday demand, spurred by compelling mobile and broadband offers launched in the fourth quarter.
Globe also registered its strongest broadband subscriber take-up in 4Q 2008, driven by healthy demand for its wireless broadband offer. This period’s net additions of about 55,000 exceeded the performance of the first three quarters of the year, enabling Globe to close the year with a broadband subscriber base of 234,000, almost double that of 2007.
The continued expansion of the broadband and corporate data businesses helped cushion the impact of the softness in wireless revenues. Full year consolidated revenues of P62.9 billion were flat compared to 2007 due to the combined effects of a weaker macro-environment and more intense market competition. Wireless service revenues declined by 1% to P55.6 billion from previous year’s P56.4 billion, while Innove wireline revenues improved by 7% to P7.3 billion from P6.8 billion in 2007.
Gerardo C. Ablaza, Jr., President and CEO of Globe Telecom, Inc said “Our strong topline performance in the fourth quarter enabled us to regain some of the ground that we lost in the early part of the year. This also gives us momentum going into 2009, even as we brace ourselves for a more challenging year ahead. ...We are encouraged by the resilient growth of both our mobile and broadband subscriber base, and remain committed to delivering products and services that serve the needs of our subscribers at affordable prices.”
Amidst rising consumer prices and stretched household budgets, Globe introduced various service offerings that complement its unlimited texting packages and its unique per-second voice call offer. In the fourth quarter, Globe launched Tawag236 which allows Globe prepaid and postpaid subscribers to make up to 20 minutes of local calls for only P20. It also introduced UnliCalls Nyt which enables Globe and TM prepaid subscribers to log in unlimited voice minutes at off-peak hours for only P20 and P15, respectively. Both promo offerings cover Globe-to-TM and TM-to-Globe calls with the integration of TM’s subscribers to Globe’s network in mid-2008. For the OFW community, following the successful launch of its TipIDD IDD card, Globe introduced a P25 denomination card. TipIDD offers discounted IDD rates to 15 popular destinations.
Globe conducted a series of 3-Day Sale events in major malls to drive subscriber acquisitions. Globe showcased integrated mobile and broadband packages, Barkada Deals for phone kits, as well as affordable payment schemes for the Apple iPhone 3G. Globe opened up broadband to the wider market by bringing down the cost of modems from P4,500 to P2,500. With the lowered entry costs and with the introduction of a prepaid variant in the third quarter, customer take-up for its Visibility wireless broadband service significantly increased, contributing 60% of the fourth quarter’s net additions for the broadband business.
“Demand for both our fixed and mobile broadband services has been very positive and has exceeded our expectations. We expect broadband growth to continue into 2009 with the increasing affordability of the service and the data devices,” Mr. Ablaza added. “For 2009, our objective is to build on the learnings of 2008, sustain our fourth quarter gains and step up growth for all our businesses. While we will adapt to changes in near-term demand with the slowing economy, we will continue to invest and set our sights on the long-term,” Mr. Ablaza concluded.
Globe reaffirmed its commitment to its dividend policy of distributing 75% of prior year’s net income and to achieving an optimum capital structure. In its meeting today, the Board of Directors declared the first semi-annual cash dividend of P32 per common share, payable to shareholders of record as of February 17, 2009. A total of P4.2 billion in dividends will be paid on March 10, 2009.
Tuesday, January 27, 2009
Holcim to Shutdown Cement Plants on Weak Demand
Holcim Philippines announced it will be shutting downs it cement plants for six weeks as demand for the product weakens. In a disclosure to the Philippine Stock Exchange, Holcim said that there is no plan to close HLCM's remaining cement lines. Holcim Chief Operating Office (COO) Ian S. Thackwray said it is possible any of the HLCM's plants may need to have short shutdowns due to the current economic demand.
Thackwray said that despite these shutdowns, there will be no job losses in any of the HLCM's plants.
Thackwray said that despite these shutdowns, there will be no job losses in any of the HLCM's plants.
Jollibee Sales Increase 13%, But Lower Profits
26 January 2009
Jollibee confirmed today that sales increased by 13% in 2008, but profit is expected to slightly go down. Jollibee Chairman Tony Tancaktions said the high cost of raw materials last year squeezed the company profits.
Jollibee maintains a positive outlook for this 2009 due to lower prices.
Jollibee confirmed today that sales increased by 13% in 2008, but profit is expected to slightly go down. Jollibee Chairman Tony Tancaktions said the high cost of raw materials last year squeezed the company profits.
Jollibee maintains a positive outlook for this 2009 due to lower prices.
PhilWeb Corp. posts 90% increase in core Net Income
PhilWeb Corporation reported that is net Income from core business rose to P229.5 million for 2008, 90% higher than last year’s P120.8 million.
PhilWeb President Dennis Valdes said "The key driver of core Net Income continues to be our PAGCOR e-Games Cafes...In 2008, we opened 45 new cafes, a 59% increase in outlets, ending the year with 121 cafes."
Consolidated net income totaled P287.3 million up P64.5 million versus 2007 net income of P222.8 million. This includes PhilWeb's equity in the net earnings of
ISM Communications Corporation.
Valdes added “The company did not only sustain its meteoric growth of 2007, it actually accelerated that growth last year...We expanded aggressively in our
other existing games of chance, like Premyo Sa Resibo, Basketball Jackpot and Txtingo Super Singko."
As a result PhilWeb Revenue totaled P457.2 million, 71% higher than
previous year.
Premyo Sa Resibo or PSR is a SMS text-service-based raffle operated on behalf of the Bureau of Internal Revenue with the objective of increasing tax revenues by uncovering companies that do not issue proper receipts. PSR has awarded over P120 million in prizes June 2006, and continues to pick a new millionaire every two weeks.
Basketball Jackpot is operated from a network of kiosks called Internet Sports Betting Stations or ISBS. PhilWeb had a total of 149 ISBS as of end-December 2008.
Txtingo Super Singko, is a SMS text-service-based mobile lottery, with a daily draw giving texters the chance to win P10 million outright.
Valdes noted that these results allowed PhilWeb to accumulate a cash
hoard of over P695 million. He added "We will use these funds to aggressively invest in new games of chance and other opportunities that come our way in 2009. The past year has turned out to be a record year for PhilWeb, wherein we recorded our highest ever levels of Revenue and Net Income, so we are quite optimistic that this trend will accelerate in 2009."
PhilWeb President Dennis Valdes said "The key driver of core Net Income continues to be our PAGCOR e-Games Cafes...In 2008, we opened 45 new cafes, a 59% increase in outlets, ending the year with 121 cafes."
Consolidated net income totaled P287.3 million up P64.5 million versus 2007 net income of P222.8 million. This includes PhilWeb's equity in the net earnings of
ISM Communications Corporation.
Valdes added “The company did not only sustain its meteoric growth of 2007, it actually accelerated that growth last year...We expanded aggressively in our
other existing games of chance, like Premyo Sa Resibo, Basketball Jackpot and Txtingo Super Singko."
As a result PhilWeb Revenue totaled P457.2 million, 71% higher than
previous year.
Premyo Sa Resibo or PSR is a SMS text-service-based raffle operated on behalf of the Bureau of Internal Revenue with the objective of increasing tax revenues by uncovering companies that do not issue proper receipts. PSR has awarded over P120 million in prizes June 2006, and continues to pick a new millionaire every two weeks.
Basketball Jackpot is operated from a network of kiosks called Internet Sports Betting Stations or ISBS. PhilWeb had a total of 149 ISBS as of end-December 2008.
Txtingo Super Singko, is a SMS text-service-based mobile lottery, with a daily draw giving texters the chance to win P10 million outright.
Valdes noted that these results allowed PhilWeb to accumulate a cash
hoard of over P695 million. He added "We will use these funds to aggressively invest in new games of chance and other opportunities that come our way in 2009. The past year has turned out to be a record year for PhilWeb, wherein we recorded our highest ever levels of Revenue and Net Income, so we are quite optimistic that this trend will accelerate in 2009."
Tuesday, January 20, 2009
SM Bags Best in Corporate Governance Award
19 January 2009. Pasay City, Philippines.
SM Investments Corporation (SM) announced today that it garnered awards from two international publications.
SM was voted as one of the Philippines’ Best in Corporate Governance for 2008, based on a survey by The Asset Magazine. The other awardees were Manila Water, Ayala Corp, Globe Telecoms, and Bank of the Philippine Islands.
SM was also awarded the 2008 Best Philippine Capital Markets Deal Award by the International Financing Review (IFR) Asia for its US$350 million bonds that were issued in July 2008.
The bonds, which mature in five years with a three-year put option, were priced at a fixed rate of 6.75 percent, one of the lowest yields in the market.
It was also the first major international corporate bond offering from the Philippines in over two years, and the country’s largest private bond issue. The issue was successfully launched in spite of a turbulent market environment. UBS served as the sole book runner of the issue.
SM is one of the largest holding companies in the Philippines. It is a dominant player in retail, mall operations, and banking. It is also an emerging player in property development, which includes residential, commercial, tourism,
and hotel projects.
SM Investments Corporation (SM) announced today that it garnered awards from two international publications.
SM was voted as one of the Philippines’ Best in Corporate Governance for 2008, based on a survey by The Asset Magazine. The other awardees were Manila Water, Ayala Corp, Globe Telecoms, and Bank of the Philippine Islands.
SM was also awarded the 2008 Best Philippine Capital Markets Deal Award by the International Financing Review (IFR) Asia for its US$350 million bonds that were issued in July 2008.
The bonds, which mature in five years with a three-year put option, were priced at a fixed rate of 6.75 percent, one of the lowest yields in the market.
It was also the first major international corporate bond offering from the Philippines in over two years, and the country’s largest private bond issue. The issue was successfully launched in spite of a turbulent market environment. UBS served as the sole book runner of the issue.
SM is one of the largest holding companies in the Philippines. It is a dominant player in retail, mall operations, and banking. It is also an emerging player in property development, which includes residential, commercial, tourism,
and hotel projects.
Tuesday, January 13, 2009
SM Opens SM City Fairview Annex
SM Prime Holdings, Inc. launched the SM City Fairview Annex on January 15, 2009, adding add 28,600 square meters (sqm) of gross floor area (GFA) to the main mall and increasing SM Fairview’s total GFA to 182,783 sqm.
SM Prime President Mr. Hans Sy said "Quezon City remains to be one of SM Prime’s most important local partners, and continues to be a domain for further growth.” Quezon City hosts SM City Fairview, SM City North Edsa and SM Cubao.
SM City Fairview Annex is estimated to employ to close to 1,500 direct and indirect employees.
The SM City Fairview Annex has 19,100 sqm of gross leasable area and will have as its mall tenants Ace Hardware, Timezone, Grills, Chilly Willy’s, Sbarro, Breadtalk, Ford Motors, Center for Pop Music, All Flip Flops, and People R People, among others.
Last year, SM Prime launched in quick succession, SM City Marikina, the SM Megamall Bridgeway, SM City Rosales in Pangasinan, The Annex at SM City North Edsa, and SM City Baliwag in Bulacan.
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