By Mary Ann Ll. Reyes
The Philippine Star 05/09/2007
Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) reported net earnings of P8.6 billion in the first quarter of 2007, practically the same level as a year earlier, as the company paid more taxes and gained less from its foreign exchange transactions.
But core net income, a measure that strips out currency and derivative gains, rose 11 percent to P8.4 billion in the first three months, from P7.6 billion in the same period last year, the company said yesterday.
Officials said, the "flat" net income was attributed to increased provision for taxes of P2.1 billion due to a higher effective tax rate of 34 percent compared to a previous 22 percent; lower foreign exchange gains of P278 million in the first quarter of this year as against P1.6 billion in the same period last year; and non-recurrence of certain depreciation charges.
Group service revenues, which include contributions of wireless phone units Smart and Piltel, increased 10 percent to P33 billion, notwithstanding the five percent appreciation of the peso which negatively impacted on the group’s revenues that are dollar-linked.
PLDT chairman Manuel V. Pangilinan emphasized that the group’s core income of P8.4 billion in the first quarter bodes well for the rest of 2007, as he expects the company to meet the higher end of its full year core income target at P33 billion.
Pangilinan also noted that cash flow remains strong and that the company remains committed to its goal of an increased dividend payout of 70 percent, half of which is expected to be declared in August. He expects the first quarter performance to continue to the second quarter, as the wireless business performs ahead of expectations.
"We also expect some election-related spending elements to our performance in the second quarter. The picture will be similar to the first quarter although the second quarter will be slightly better than the first quarter. Profit numbers will be better in the second quarter on a core income basis," he explained.
"During the course of the year, we will continue to look at investment areas that can provide ways to expand growth. In the event such opportunities do not arise or when they do, prove unattractive, we will consider the option of returning additional cash to our shareholders in the most efficient manner possible," Pangilinan added.
Meanwhile, PLDT president and chief executive officer Napoleon Nazareno reported that consolidated earnings before interests, taxes, depreciation and amortization (EBITDA) during the first quarter of the year improved by three percent to P20.4 billion while EBITDA margin was at 62 percent.
Group capital expenditures (capex) for the first three months of 2007 totaled P5.9 billion and were primarily utilized on the continued roll out of next generation network (NGN) lines which now number 230,000, increasing cellular capacity, expanding the wireless broadband network and investing in international cable capacity.
Capex for the group is expected to range between P20 billion to P22 billion in 2007.
PLDT is investing a total of P100 million in international cable capacity as part of its capex estimates for 2007-2008 to support the company’s expansion of broadband and other net generation services. The company is also investing in the upgrade of APCN2 and for the build-out of the Japan-US cable system which is expected to carry commercial traffic by June 2007.
These cable systems are expected to provide a combined additional capacity by next year, five times more that PLDT’s existing international capacity.
As for new investments, Pangilinan for his part said around $100 million is being allocated for additional acquisitions on the business process outsourcing (BPO) scene.
PLDT is likewise looking at acquiring smaller telephone companies outside Metro Manila to expand the geographic coverage on the wireless broadband side. The company also expects to launch on a soft basis within the year its mobile TV business.
Wednesday, July 01, 2009
050907: PLDT earnings flat at P8.6B in 1st quarter
050907: Metrobank enters remittance market in Qatar
By Ted P. Torres
The Philippine Star 05/09/2007
Local banking giant Metropolitan Bank and Trust Co. and Qatari exchange company Al Dar Exchange Works have entered into a partnership that would boost Metrobank’s market share in the remittance business.
Remittances from Middle Eastern nations are done through banking correspondence or partnerships with foreign currency agencies and remittance centers.
Last year, the country’s largest commercial bank cornered a 22 percent share of the lucrative remittance business worth about $12 billion.
Metrobank executive vice president Carmelita R. Araneta said the partnership with Al Dar will strengthen its presence in the
"The arrangement will allow OFWs (overseas Filipino workers) based in
The
Remittance services offered to OFWs are credit to Metrobank account, credit to other banks’ account, door-to-door transaction, and payment over-the-counter at Metrobank branches.
Al Dar is the biggest exchange company in
050907: SM Prime profit jumps 11% to P1.5B in Q1
By Zinnia B. Dela Peña
The Philippine Star 05/09/2007
Shopping mall giant SM Prime Holdings Inc. posted a net profit of P1.5 billion in the first quarter this year, up 11 percent from a year ago on higher income from lease operations.
In a statement, SM Prime said gross revenues grew 24 percent to P3.6 billion due to the opening of five malls in 2006, including the SM Mall of Asia, the largest shopping mall in the country to date.
Rental income rose 26 percent to P3 billion, accounting for 83 percent of total revenues. SM’s malls, on the average, enjoyed an occupancy rate of 97 percent.
EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to P2.5 billion or an increase of 19 percent from the year earlier, translating to an EBITDA margin of 71 percent.
The malls that opened last year were SM City Sta. Rosa, SM City Clark, SM Supercenter Pasig and SM City Lipa. SM North Edsa was also expanded with the block.
"Expect more to come from us as we carry out our goal of bringing more SM malls to provincial communities and expand some of our existing malls that have naturally grown and evolved with its markets," said SM Prime president Hans Sy.
Other malls slated for opening this year are SM City Taytay and SM Supercenter Muntinlupa.
SM Prime said it is also expanding the Mall of Asia and SM City Pampanga.
The company is setting aside P35 billion over the next five years for the construction of 35 to 40 new malls as well as the expansion of existing malls nationwide. Funding for the project will come from internally generated funds as well as some borrowings.
For this year alone, SM Prime is spending P7 billion for the development of malls in Taytay, Rizal and Muntinlupa. It is budgeting P1.8 billion to add leasable areas in the Mall of Asia as well as the construction of a planetarium adjacent to the mall.
Malls to be developed in 2008 include Tarlac, Naga, Calamba, Baliuag, and
The programmed capital budget does not include SM Prime’s landbanking activities and planned acquisition of malls developed by other entities.
SM Prime is doubling its authorized capital stock to P20 billion from the existing P10 billion to prepare for more investments or capital raising opportunities.
050907: Market continues to rise on Wall St rally
The Philippine Star 05/09/2007
Share prices closed 0.12 percent higher yesterday aided by a rise on Wall Street overnight which extended its record run to five days amid frenzied takeover activity, dealers said.
They said the composite index also breached the 3,325-point resistance level as some investors took their cue from the Dow Jones bull run.
The composite index edged up 4.06 points to settle at 3,333.95. It moved between 3,329.89 and 3.357.88. The broader all-share index rose 9.55 points to 2,121.04.
Gainers beat losers 60 to 44, while 57 stocks were unchanged. A total of 2.6 billion shares worth P4.7 billion were traded.
The Dow Jones Industrial Average crossed 13,300 for the first time on Monday, securing its 20th record close since the start of the year.
Other investors meanwhile were cautious ahead of the May 14 midterm elections.
"We have to confirm in the next few sessions if that level can hold. If it does, the next resistance would be 3,400," said Gomer Tan of Regina Capital Development Corp.
Tan said while market sentiment was bullish in general, investors will likely continue to be guarded ahead of next Monday’s congressional elections.
"If the political exercise is peaceful though, the market will likely go up since a credit rating upgrade (for the
Most international credit rating firms have put their review of the country’s credit ratings on hold, opting to wait for the results of the elections.
Top-traded Philippine Long Distance Telephone Co. (PLDT) shed P15 to P2,550 after the release of flat quarterly profits, reflecting the market’s disappointment.
But PLDT chairman Manuel Pangilinan said the company expects its core profit for the full year to come in at P33 billion, the top end of its guidance.
Globe Telecom gained P45 to P1,290.
Property developer
San Miguel Corp.’s A-shares were steady at P64.50, while its B-shares closed up P1.50 at P75. San Miguel was to announce its first quarter results later Tuesday. — AFP
050907: SMC to spin off beer, packaging units, sets IPO
By Zinnia B. Dela Peña
The Philippine Star 05/09/2007
Food and beverage giant San Miguel Corp. (SMC) is spinning off its flagship domestic beer and regional packaging businesses in preparation for an initial public offering (IPO) to raise funds for new ventures and boost growth, the company said in a statement yesterday.
SMC said its board of directors approved yesterday the listing of San Miguel Beer Domestic, which will become a wholly-owned subsidiary of the group in partnership with
"We are excited about our plans for driving San Miguel’s long-term growth in our core and new businesses through our strategy of portfolio transformation. We are confident these steps will create more value for our shareholders," said Eduardo Cojuangco Jr., chairman and chief executive officer of SMC. Earlier, SMC confirmed it is looking at entering the mining, power, infrastructure and utility sectors to reignite growth after saturating its core home market.
This will be presented to stockholders for their approval at the company’s annual meeting on July 24.
SMC president and chief operating officer Ramon S. Ang, for his part, said: "We believe that stand-alone domestic brewing and packaging operations will enhance our companies’ ability to compete more effectively in their industries. An IPO would raise for each business much needed equity and allow it to grow faster and partner more effectively with other world class players like
The company also sought board approval for its beer business to enter into a strategic partnership with
Ang added that the move will provide both the beer and packaging businesses the financial flexibility and operating muscle that will boost operations moving forward.
"We are looking to unlock the potential and underlying value of the entire San Miguel Group. This is something we have been looking at for some time now and with this spin-off, we reach another milestone in our long-range plan to transform San Miguel into a more disciplined, high-performing company," Ang pointed out.
Last April 27, SMC signed an agreement with long-time joint venture partner Nihon Yamamura Glass to sell its 35 percent stake in its domestic and international packaging business.
Also approved by the board is an increase in its capital to 7.5 billion shares, equivalent to P37.5 billion pesos, from the existing P4.5 billion to raise funds for investments as well as pay debt and finance a possible share buyback.
This will allow SMC to issue 1.5 billion preferred shares as part of the capital raising exercise. In 2005, the company sought a waiver for the shareholders’ pre-emptive rights on the "issuance of any class of preferred shares related to equity-linked or other securities, for property needed for corporate purposes."
Meanwhile, SMC announced that its first quarter net profit more than doubled to P4.33 billion, boosted by gains from the sale of its stake in softdrinks and bottler unit Coca-Cola Bottlers Philippines Inc. Excluding the revenue contribution from CCBPI, SMC’s sales revenue rose seven percent to P55.4 billion while consolidated operating income fell 24 percent to P3.8 billion as external factors continued to affect the performance of its hard liquor unit Ginebra San Miguel Inc. In addition, SMC said its packaging company suffered from the cyclical downtrend for glass bottle requirements while Australian dairy giant National Foods Ltd. absorbed cost increases as a result of the continent’s prolonged drought. SMC’s domestic beer division reported a 13 percent rise in operating income to P2.7 billion as raw material and fuel prices declined.
Revenues amounted to P10.5 billion. International beer operations, on the other hand, recorded a two percent growth in volumes with corresponding sales revenues of $68.3 million.
North and South China operations together with
National Foods, meanwhile, generated revenues of AU$496 million, 12 percent higher than last year with volume improvement achieved in all categories.
050907: Ayala Land declares cash dividend
May 09, 2007
Updated 10:23:22 (Mla time)
The property developer is scheduled to announce its first-quarter results later Wednesday.
http://services.inquirer.net/express/07/05/09/html_output/xmlhtml/20070509-64928-xml.html
050907: First Gen Q1 net profit rises 33% on increased output
May 09, 2007
Updated 09:47:00 (Mla time)
In a statement, First Gen said its sales rose 22 percent to $264 million, including revenue from the 112-megawatt Pantabangan and Masiway hydropower plants in Nueva Ecija in northern
First Gen, which is 66.3-percent owned by First Philippine Holdings Inc, also attributed the better results to increased revenue from its natural gas-fired power plants and extraordinary income from insurance claims.
http://services.inquirer.net/express/07/05/09/html_output/xmlhtml/20070509-64925-xml.html
050907: Geograce stock rights offering starts May 15
May 09, 2007
Updated 07:19:13 (Mla time)
The offer price is P1 per share.
Geograce is offering 560.46 million common shares to get up to P560 million, which it says will be used for project development, exploration costs, asset acquisitions, and additional working capital.
The company is engaged in mining, particularly in tenement acquisitions and management, with presence in the provinces of Zambales,
Geograce has engaged JP Morgan as financial adviser on possible capital-raising activities, along with specific advisory on cross border mergers and acquisitions.
The rights offer shares are expected to be listed at the Philippine Stock Exchange on May 25, 2007. With INQUIRER.net
http://services.inquirer.net/express/07/05/09/html_output/xmlhtml/20070509-64909-xml.html
050907: Alaska Milk sees '07 revenues at P9B with new brands
May 09, 2007
Updated 04:49:59 (Mla time)
MANILA, Philippines -- Alaska Milk Corp. expects sales of P9 billion this year, compared with P6 billion in 2006, thanks to its acquisition of brands from Nestlé company president Wilfred Steven Uytengsu Jr. said Tuesday.
Alaska Milk recently bought three Philippine-registered liquid milk trademarks -- "Alpine," "
Alpine,
Krem-Top is said to have an established record in the food service category.
Uytengsu told Alaska Milk shareholders at their annual meeting that acquisition of the brands would "allow us to pursue long-term growth."
"This transaction alone will add about P3 billion in annual revenues to our business while providing the company with established brands that mirror our corporate strategy in growing the milk category," he said.
The agreement to buy the brands was sealed last April.
Uytengsu said he expected the brands to contribute P2 billion to total revenues this year.
The company president noted the impact of cost pressures this year on earnings, with a rise in prices of skim milk powder.
"Prices had averaged $2,100 a ton and now they are up at $4,500 a ton," he said, pointing to a global shortage of milk powder and strong demand in
Alaska Milk reported 2007 first-quarter revenues of P1.67 billion, up 33 percent from P1.26 billion a year earlier, with increased sales volumes and an average of five percent increase in selling prices in line with industry increases for selected products, like powdered milk and sweetened condensed milk. With INQUIRER.net
http://services.inquirer.net/express/07/05/09/html_output/xmlhtml/20070509-64865-xml.html
050907: SM Prime Q1 profit P1.5B
May 08, 2007
Updated 14:27:48 (Mla time)
SM Prime said its first-quarter gross revenue had grown by 24 percent to P3.6 billion with the opening last year of five new malls.
Rents for space in its malls accounted for 83 percent of revenue in the first quarter. These rents increased 26 percent to 3.0 billion pesos because the newly opened malls have an occupancy rate of 97 percent.
The company's operating expenses were 1.6 billion pesos and its operating income grew by 17 percent to P2 billion.
SM Prime president Hans Sy said in a written statement: "SM Prime will continue to reap the benefits of its continued expansion this year."
New malls that the company expects to open this year include SM City Taytay and SM Supercenter in Muntinlupa, while SM Mall of Asia and SM City in Pampanga will be expanded.
SM Prime is a subsidiary of holding company SM Investments Corp.
http://services.inquirer.net/express/07/05/08/html_output/xmlhtml/20070508-64769-xml.html