051107: School-supply makers, retailers: no price hikes

By Max de Leon

Reporter

MANUFACTURERS and retailers of school supplies have assured consumers that they will not increase their prices for the opening of classes this year. Trade Secretary Peter B. Favila said he secured this commitment from the officials of the Philippine School Pads and Notebooks Manufacturers Association Inc., Sterling Group of Companies, Amalgamated Specialties, Corona Supply Co. Inc., Advance Paper Corp., Veco Paper Corp., Times Trading Co. Inc., Merriam and Webster Bookstore, Goodwill Bookstore and National Bookstore. Favila met with them Thursday morning to check on the supply situation and prices of school supplies throughout the country. During the meeting, Favila was assured that there will be no price increase and that there is adequate supply of said products to meet the expected increase in demand in time for the opening of classes in June. “Consumers can buy their school needs at the same prices as last year. This is good news especially for those parents who are preparing for the opening of classes. We are glad that local businessmen are heeding the call of government in making goods affordable to consumers,” Favila said. Despite the election frenzy, Favila said the Department of Trade and Industry (DTI) remains focused on monitoring the price and supply of school supplies in the following weeks to ensure that no retailer would take advantage of the buying season to unjustly raise their prices. According to the DTI-National Capital Region monitoring report, current prevailing prices for school materials are as follows: Pad paper (econobond) Grade 1 (90 leaves)                            –              P10.00 to P13.25 Grade 2 (90 leaves)                            –              P10.00 Grade 3 (90 leaves)                            –              P10.00 Grade 4 (90 leaves)                            –              P10.00 to P13.25 Intermediate pad                                 –              P20.00 to P24.25 Notebook (econobond) Composition (90 leaves)                   –              P11.50 to P12.75 Composition (50 leaves)                   –              P8.00 Writing (90 leaves)                              –              P11.75 Writing (50 leaves)                              –              P8.00 Spiral (90 leaves)                                –              P12.50 to P12.75 Spiral (50 leaves)                                –              P8.50 Pencil (per piece)                                –              P5.50 to P5.75 Manufacturers informed the DTI that they are coming out with 80-leaf paper products, which will be one peso cheaper.  This move gives consumers an affordable choice for its notebook and pad paper needs. Trade Undersecretary for Consumer Welfare Zenaida Cuison Maglaya reminded retailers to always disclose the true costs of their goods by placing a price tag on the items as mandated by the Price Tag Act.

 

http://www.businessmirror.com.ph/0511&122007/economy04.html

051107: ABS-CBN posts 138% profit hike on huge airtime revenue

By Lenie Lectura

Reporter

ABS-CBN Broadcasting Corp. reported a 138-percent hike in its first-quarter net profit to P280 million from P118 million in the same period last year. The strong improvement was driven by higher airitme revenues and sale of services, the company said Thursday. Gross airtime revenues went up by 20 percent on the back of higher advertising volume as well as political ads. Combined sale of services and sale of goods of subsidiaries also posted a healthy growth of 16 percent to P1.38 billion, driven by strong performance of ABS-CBN Global and ABS-CBN films. “The first-quarter revenue was mostly driven by the parent company. In the second quarter, we are already seeing part of it, meaning the performance of the parent company continues,” said ABS-CBN vice president for finance Miguel Navarrete. Operating income grew 38 percent to P532 million, resulting in an operating margin of 13 percent against 10 percent in the same period last year. Earnings before interest, taxes, depreciation and amortization (Ebitda) went up by 29 percent to P1.119 billion. Navarette said it is too early to tell if the company will be able to hit its target P1-billion net profit this year. “It is too early to say. It depends on the balance of the year,” he said. The surge in profits was also attributed to an improved programming which resulted in higher audience share and lower operating expenses. As of end-March, ABS-CBN Global had 1.6 million viewers worldwide, up 18 percent from a year earlier. Its audience share in Metro Manila for the whole day stood even with rival GMA Network Inc. at 38 percent. In Mega Manila, ABS-CBN’s audience share continued to improve, averaging 36 percent in the first quarter. Navarrete said the company is now negotiating with customers for an increase in advertising rates, possibly within the quarter. “Negotiations occur on a per client basis. It depends on the volume committed and the performance in previous years. We are still in the middle of the discussions,” he said. Capital expenditures (capex) during the first three months of the year stood at P228 million. Navarrete said the company is on track to the P1.5-billion spending level announced earlier.  “We have the cash necessary to finance all the investments,” he said.

 

http://www.businessmirror.com.ph/0511&122007/headlines04.html

051007: IPVG subsidiary expands managed IT services in RP

By Eden E. Estopace
The Philippine Star 05/10/2007

IP-Converge Data Center Inc., the information and telecommunications division of IPVG Corp., is expanding its managed IT services in the Philippines, particularly in the area of application-driven business solutions.

Rene Huergas, president and COO of IP-Converge, told a news conference that the company is leveraging on its facility and integrated package of managed services portfolio to provide an end-to-end solution to companies.

The expansion is in response to the growing demand for cost-effective operational tools that allow companies to focus more on core business objectives and growth initiatives.

IP-Converge’s expertise range from bandwidth provisioning to fully integrated network management. It initiates, designs and manages its clients’ overall network, provides co-location services for firms, global Internet access, dedicated leased lines, network access and data security.

"Primarily, our business last year was focused on data services. We operate and own a telco-grade Internet data center and we have relationships with the primary carriers in the world, one of which is the PCWW of Hong Kong," Huergas said.

Through its partnership with Prolexic Technologies, the company has also been very successful in providing mitigation services and business continuity solutions for companies in the event of a disaster.

"In the unlikely event of a disaster in their facility, our clients can just walk in into our data center and plug into the Internet and off they go. So, we eliminate the operational risk of a disaster for our clients," he added.

As of now, IP-Converge has a point of presence in Hong Kong and is looking towards setting up a similar facility in Singapore.

One of the latest products it recently introduced is the voice over Internet call exchange suite (VOICES).

"It’s a natural takeoff to providing content," Huergas said. "We have access to the enterprise market, we have access to our special market and all we need to do is provide our clients with additional applications. What we are doing here is an evolution of the data market towards providing content."

The company has also forged a partnership with Credence Analytics, one of the leading financial systems in the world.

"Right now, we are pretty much focused on wholesale banking, particularly asset management, treasury management systems, market risks. As of today we are pretty much in the shortlist of several banks," he revealed.

In the area of contact service solutions, Huergas said IP-Converge is gearing up towards setting up a facility for addressing the needs of small- and medium-sized call centers.

"So, if you are a call center operator, all you need to do is sign up with us and we will provide you with connectivity and the application," he said.

IP-Converge is also venturing in the customer relationship management (CRM) marketplace and took the occasion to announce its newly minted partnership with Salesforce.com, a worldwide leader in on-demand CRM.

"We are extremely excited to welcome IP-Converge as a salesforce.com customer and explore ways to jointly deliver customer success to Philippine companies," Graeme Beardsell, regional vice president – Sales, Salesforce.com Asia-Pacific, said. "The combination of Salesforce.com and IP-Converge lays the foundation for potential growth and adoption of software as a service (SaaS) in the Philippines."

According to Beardsell, Salesforce.com has 29,800 customers all over the world and 646,000 subscribers.

"Customer relationship management is essentially what every business does. Every business in any industry has a client or a customer that they need to serve," Beardsell said. And the ability to maintain those customers and find new customers through systemized sales management skills and sales support skills bundled in a very easy to access Internet service is what Salesforce.com does best.

In the Philippines, Beardsell said that organizations will be looking at managed services and support services. Worldwide, he said a managed IT service is a $700-billion industry and opportunities are ripe for the local industry as well.

With these new services on board, IP-Converge is now ready to tap into high-growth markets, particularly companies in need of on-demand CRM applications.

 

http://www.philstar.com/philstar/news200705100701.htm

051007: Anchor Land eyes up to P700M through IPO

May 10, 2007
Updated 04:41:54 (Mla time)

Inquirer

MANILA, Philippines -- Property developer Anchor Land Holdings Inc. hopes to get as much as P700 million from an initial public offering (IPO) of stock, possibly in the third quarter, company president Steve Li said.

He said Anchor Land would use the proceeds to increase its land bank and fund existing projects.

“We are looking at acquiring additional properties in Manila,” he said in an interview as the company unveiled a residential project aimed at high-end buyers from the city’s Chinatown area Binondo.

He said the company applied for an IPO with the Securities and Exchange Commission and the Philippine Stock Exchange early this week and he expected to get approval in the coming weeks.

Anchor Land would raise P400-P700 million from the share sale, he said. He did not disclose what percentage of outstanding stock would be made available.

Li said the company, owned by Chinese-Filipino shareholders whom he declined to identify, focused mainly on developing residential projects in Manila. He said he believed the heart of Manila remained underserved. Daxim Lucas, with INQUIRER.net

http://services.inquirer.net/express/07/05/10/html_output/xmlhtml/20070510-65102-xml.html

051007: PLDT seeks change in NDD fee

IF the Philippine Long Distance Telephone Co. (PLDT) will modify the maintenance fee on national direct distance dialing (NDD) projected revenues will remain flat at P157.5 million on the fourth and fifth years of implementation. In a study PLDT gave the National Telecommunications Commission (NTC), the phone giant said projected net revenues will hit P134,819,794 million in the first year, down to P121,702,386 in the second year, and up to P157,497,205 in the third year. During years four and five, the phone giant is expected to post the same projected net revenues at P157.49 million. PLDT expects no new subscribers in the fourth and fifth years of implementation. PLDT gave the study because it wants to adjust the monthly handling fee for NDD to about P200, and it wants NTC to approve the adjustment for residendtial and business subscribers.  NDD allows subscribers to make domestic long distance calls without passing through an operator. PLDT now charges a monthly P20-maintenance fee for P10 per call on top of the monthly subscription rate pegged at around P700 for residential subscribers and P1,200 for business subscribers. The service was expanded in December 2005 to include PLDT to subscribers to the Smart Telecommunications network with a monthly fee of P50. This is now longer available to new subscribers, however, Smart is a unit of PLDT.  PLDT discontinued the expanded service in February 2006, after rival Globe Telecom complained with the NTC that the service violates commission rules on predatory pricing. Should the commission approved the adjusted handling fee, PLDT stands to attract 349,055 to the optional NDD service beginning year one. PLDT sees a decline in the subscriber count by 24,956 in the second year and 95,340 in the third year. Thus, subscriber count during the second year will be at 231,540 and 136,200 in the third, fourth and fifth years. The projected expenses from year one to five is expected to reach P131.18 million, P137.93 million, P153.24 million, P153.32 million and P153.41 million, respectively. “PLDT proposes to modify the foregoing handling and maintenance fee applicable for a period of five years from the date of its implementation at a maximum rate cap of P200 per month in order to allow [PLDT] the flexibility of modifying said handling and maintenance fee within the applicable period,” the phone giant said in its application filed in January this  year. PLDT proposed that monthly handling fee for residential subscribers currently hooked up with the optional NDD service be adjusted to a minimum of P70 with a rate cap of P200 while business subscribers be charged with a minimum of P150 but not exceeding P200. “[PLDT] is constrained to implement the foregoing changes in the applicable handling and maintenance fee in order to support the viability of continuously providing and maintaining the optional NDD calling feature for its customers at required service level,” it said. The monthly maintenance fee, it added, will cover the company’s costs incurred for maintaining and managing separate data base and other specialized service offerings inclusive of unlimited call duration feature at affordable rates as well as various freebies and privileges, such as discounted special telephone sets and loyalty rewards  bundles. --Lenie Lectura    *****  First Pacific may buy Asian phone company  By Paul Gordon and Francisco Alcuaz Jr. Bloomberg  MANILA AND HONG KONG—First Pacific Co., owner of the Philippines’ biggest phone company, is in talks to buy an Asian telecommunications company in “weeks” for between $800 million and $1 billion, chief executive Manuel Pangilinan said. “We’re looking now at a specific opportunity in Asia,” Pangilinan said in a television interview, declining to identify the company or its location. First Pacific, the biggest shareholder in the Philippines’s largest phone company, may face competition in its attempts to buy Asian telephone assets as companies including Singapore Telecommunications Ltd. and Hutchison Telecommunications International Ltd. expand in the region’s emerging markets. “The valuations for telecommunications assets are being pushed up as companies such as Singtel scour the market for opportunities,” said Ramakrishna Maruvada, an analyst at Macquarie Securities Ltd. in Singapore. Shares of Philippine Long Distance Telephone Co., 13.8 percent owned by First Pacific, rose 0.2 percent to P2,555 at the end of trading in Manila, rebounding from Tuesday’s 0.6-percent decline. First Pacific, based in Hong Kong, is also studying the acquisition of power plants “in China and elsewhere in the region,” Pangilinan said. Hutchison Telecom, controlled by Hong Kong billionaire Li Ka-shing, will invest as much as HK$5 billion in its units in Indonesia and Vietnam, where the company started commercial services this year, chief executive officer Dennis Lui said Tuesday.  --With reporting by Mark Lee in Hong Kong, Liza Lin in Singapore and Clarissa Batino in Manila.

 

http://www.businessmirror.com.ph/05102007/companies04.html

051007: Philippine stocks rise for 4th day

By Ian C. Sayson

Bloomberg

PHILIPPINE stocks rose for the fourth day, the longest winning streak in almost a month. San Miguel Corp. climbed on speculation a plan to sell shares in its packaging and beer units will boost the value of the company. “A separate listing for its domestic beer unit, which is a mature and high-margin business, will enhance the value of San Miguel,” said Leo Venezuela, analyst at Manila-based ATR-Kim Eng Securities. “A share sale for the packaging business could do the same.” Philippine Long Distance Telephone Co. (PLDT) advanced after chairman Manuel Pangilinan said controlling shareholder First Pacific Co. is in talks to buy a phone company in the region. The Philippine Stock Exchange index added 12.03, or 0.4 percent, to close at 3345.98, after climbing 1.9 percent in the previous three days. That’s the longest run of gains since the period ended April 10. San Miguel’s Class A shares, which are reserved for Filipinos, rose P1, or 1.6 percent, to P65.50, a three-week high. Its Class B shares, which have no ownership restrictions, added P1, or 1.3 percent, to P76, extending a 2- percent gain Monday. The nation’s largest food and drinks company said Monday, after trading ended that it will hold initial share sales for its packaging ventures and local beer unit to raise funds for expansion and pay debt. San Miguel said it will also sell 1.5 billion of preferred shares. Telecom takeovers? PLDT, the nation’s largest company by market value, gained P5, or 0.2 percent, to P2,555. Pangilinan said Hong Kong-listed First Pacific, which manages PLDT, is looking to spend $800 million to $1 billion acquiring an Asian telecom company and a deal may be completed in the next “few weeks.” Pangilinan also said that PLDT will separately acquire provincial phone companies to expand its network of fixed lines. Ayala Land Inc., the nation’s largest builder, rose 25 centavos, or 1.4 percent, to P18.50, extending a two-day, 4.3-percent climb. The company said it will pay three centavos a share in dividends in July. Ayala Corp., which owns the builder, added P5, or 0.8 percent, to P600. Shares worth P3.48 billion were traded, 17-percent less than the six-month daily average and the lowest this month. Losers beat gainers 59 to 52, with 56 stocks unchanged.

 

http://www.businessmirror.com.ph/05102007/companies02.html

051007: ALI posts a 1Q net income of P1.29B

By Honey Madrilejos-Reyes

Reporter

PUBLICLY listed Ayala Land Inc. (ALI) said Wednesday its net income for the first quarter grew 10 percent to P1.29 billion from P1.17 billion in the same period last year as consolidated sales soared 18 percent to P6.45 billion. In a report to the stock exchange, ALI said operating revenues grew 11 percent to P5.28 billion as growth across all residential brands more than offset the decline in hotel and corporate business revenues. Higher equity earnings from investments in Bonifacio Global City boosted ALI’s operating revenue growth. The P667-million gain on sale of shares in Makati Property Ventures in the first quarter also contributed to the 18 percent growth in consolidated revenues. “During the first quarter, Ayala Land made significant strides in laying down the foundations for future growth. We have stepped up priming activities in our strategic landholdings and are on track with our lineup of residential project launches,” said president Jaime I. Ayala. “Expansion of our shopping center and office rental portfolio is likewise proceeding at a steady pace.” Residential development accounted for the biggest share of total revenues at 46 percent or P 2.9 billion. This was followed by the support businesses at 16 percent or P1.0 billion. Shopping centers contributed 15 percent or P978 million, while corporate business generated P232 million. Strategic landbank management accounted for P82 million, followed by revenues from operations in the Visayas-Mindanao areas with P24 million. From January to March this year, ALI spent P3.1 billion for project and capital expenditures, 15-percent more than the P2.7-billion spent during the same period in 2006. The bulk was spent on residential development projects while shopping centers accounted for 28 percent of total with construction work in full swing at TriNoma and Greenbelt 5. Corporate business hardly spent for any capex in the last quarter but should reach its P1-billion budget by year-end with the construction of the De la Rosa E-Services Tower and the first two buildings of the UP North Science and Technology Park, which broke ground in March. The P3.1-billion capex for the first quarter represented 19 percent of the full year budget of P16.2 billion. Earlier, the company also said it was readying a new masterplan for the redevelopment of the Ayala Center, the most popular recreational, shopping, dining and entertainment area in Makati City. The redevelopment would still be mixed-use, involving various spaces like residential, commercial, retail and office. The new masterplan would feature office spaces for business process outsourcing and at least three hotels, two of which would be done by ALI in partnership with the Dubai-based Kingdom Hotel Investments. ALI, the property arm of Ayala Corp., decided to embark on the redevelopment of Ayala Center to get more value of its land in Makati.

 

http://www.businessmirror.com.ph/05102007/companies01.html

051007: PLDT shelves plans for DTH satellite business

PHILIPPINE Long Distance  Telephone Co. (PLDT) has shelved plans to venture into direct-to-home (DTH) television satellite business, citing uncertain profitability. PLDT chairman Manuel Pangilinan said in an interview, “There will be losses, at least in the first two years of operation.” The PLDT group is not also keen on offering this year IPTV (Internet protocol TV) where a digital content is sent to subscribers through a broadband connection. “Not this year. We need a very good infrastructure. There is a technical evaluation going on,” said Pangilinan. But PLDT is sure to commercially launch mobile TV in the second half of the year. Smart Communications Inc. in partnership with Nation Broadcasting Corp. has already begun its mobile TV test broadcast, offering nine channels including CNN, BBC World, CNBC, Basketball TV, Jack TV, Fashion TV and MTV. Pangilinan said in February this year that the PLDT group has not abandoned plans to acquire GV Broadcasting Systems, Inc., a licensed DTH operator. Before PLDT could offer DTH satellite service, it should first secure a license. “We might still proceed with GV because they have the broadcast license,” he said earlier. PLDT, through its wholly-owned subsidiary MediaQuest Holdings Inc., was supposed to acquire GV last year. GV, in a filing with the National Telecommunications Commission  (NTC) Wednesday, said it would post P4.37 billion gross revenues over five years for a plan to offer satellite mobile broadcasting, a TV and radio service using mobile devices as the  receiver. The technology allows users to watch TV and listen to radio through portable and handled devices such as the cellular phone, personal digital assistant, pocket PC and others with built-in receivers or external attachments and use it wherever they want. On the first year of implementation, GV’s gross revenues will amount to P57 million, significantly increasing to P339,150,000 in the second year, P607,191,000 in the third, P1,289,331,000 in the fourth and P2,079,864,000 in the fifth year. The estimated number of subscribers will reach 693,288 during the five-year period. Target customers of this service are mobile phone users whose handsets are 3G (third-generation)-capable. The service shall initially be made available to all cellphone subscribers in Metro Manila, Laguna, Cavite, Batangas, Rizal, Bulacan, Pampanga, Tarlac and Pangasinan. On the sixth year of operations, the entire country shall be covered by the service, GV said. Initially, GV will spend P8.52 billion to jumpstart its satellite mobile TV project. Minus expenses and provision for taxes, GV will post a net income of P9,39 million in the first year; P81.20 million in the second; P160.88 million in the third; P352.43 million in the fourth; and P593.48 million in the fifth year.   --L. Lectura

http://www.businessmirror.com.ph/05102007/headlines010.html

050907: Security Bank reports 40% hike in Q1 income to P757 M

By FIL C. SIONIL Security Bank Corporation yielded a 40 percent increase in its net income for the first quarter of the year to P757.6 million from P540.3 million a year ago, lifting its return on equity by 20 percent to 24.5 percent. In its disclosure to the Philippine Stock Exchange (PSE), Security Bank President and Chief Executive Officer Alberto S. Villarosa attributed the healthy performance of the bank to, in part, the 23 percent uptick in revenues, ekeing in some P2.2 billion. Buoyed by its healthy income growth, Villarosa informed the PSE of the bank's board of directors' decision to share the profits to its shareholders through a combined P1 regular and special cash dividend per share to be paid out within the first semester of the year. Using the P65.50 share price ending 2006, the combined move will translate to an annualized dividend yield of around three percent. Dissecting further its revenue performance, Security Bank posted a 19 percent expansion in its net interest income and another 27 percent hike in non-interest earnings amidst a decelerating interest rates. Like most banks and other financial institutions, Security Bank's net interest margins shrunk with the 273 basis points dip in average interest rates ending first quarter of the year vis-à-vis 2006. In spite this development, Security Bank's treasury operations remained relatively spirited as indicated by the 19 percent hike in net interest margins. Security Bank admitted the lower interest rate environment proved challenging to the net interest margin component of revenues. Still, the bank's trading gains netted a 23 percent hike to P780.2 million. "We dealt with the significant decline in interest rates quite admirably. Our net margins remained intact, managed through a combination of a very healthy expansion of earning assets funded by a corresponding growth in lower cost deposits," claimed Security Bank Chief Financial Officer Carlos iM. Borromeo.

 

http://www.mb.com.ph/BSNS2007050993578.html

050907: Alaska Milk chalks up 127% growth in earnings to P170 M

Alaska Milk Corporation reported a 127 percent surge in profits for the first quarter of the year to P170 million from the P75 million posted in the same period last year as sales grew faster than costs. In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Alaska reported higher sales volume across its core milk businesses, supplemented by a selective selling price increase, pushed net revenues up 33 percent to P1.67 billion from P1.26 billion in the first quarter of 2006. The firm said its liquid canned milk business posted strong growth rates notwithstanding the market’s contraction while the rate of decline for both evaporated and sweetened condensed milk products slowed down compared to the drop a year ago. The powdered milk category continued to contract, also at a slower pace, weighed largely by the contraction of the full cream segment. But sales volume managed to grow at a high single digit rate due to improvements in product availability. Sales volume of the firm’s UHT product line sustained its growth momentum through the quarter and posted double digit increases versus the same period last year. Cost of sales and operating expenses expanded by 20 percent to P1.43 billion from P1.19 billion last year on account of the upsurge in sales volume as well as heightened advertising and trade promotions in support of volume growth. Despite the rising cost of skimmed milk powder in the international market, the firm said it managed to pull down the landed cost by 11 percent due to forward-buying arrangements and lower foreign exchange cost. Improvements in operating efficiencies also kept production costs in check while operating expenses rose due to advertising and promotional spending to propel volume growth going into the seasonally high summer months. (JAL)

 

 

http://www.mb.com.ph/BSNS2007050993577.html