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| By Lenie Lectura |
| Reporter |
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| THERE are still 15 million potential wireless subscribers that mobile phone firms can continue courting before the wireless penetration rate hits 60 percent by 2010, Globe president Gerardo Ablaza said Monday. The country’s second largest cellular operator said mobile penetration rate stood at 49 to 50 percent at end-2006. Given the level of penetration at 49 percent, Ablaza said this indicates that by 2010, cellular penetration rate could well get into the vicinity of about 60 percent, representing about 58 million subscribers. “So between 2006 and 2010, we could very well see incremental SIMs (subscriber identification module) of as much as 15 million. So that’s not a small number. The challenge is to make sure that these SIMs continue to be at a level of average revenue per user,” he said in an interview. Globe closed the first quarter with a cellular subscriber base of 16.9 million, as it added 1.3 million new subscribers during the first three months of the year from 15.7 million at end-2006. Ablaza said that 80 percent to 85 percent of the company’s wireless subscribers are considered “unique” subscribers with the remaining 15 to 20 percent having more than one SIM card. “Based on our latest pulsing, we have between 15-percent and 20-percent multiple SIM usage of our total cellular subscriber base,” said Ablaza. Postpaid subscribers account for about 5 percent of the cellular subscriber base, but they contribute about 20 to 23 percent of the revenues. The prepaid subscribers make up 95 percent of the base, and contribute the revenue balance of about 77 percent, said the Globe official. “Short messaging service [SMS] base revenues are between 40 percent and 45 percent, but within that 45 percent as much as 90 percent are still person-to- person SMS, 10 percent is value-added service,” said Ablaza. The joint venture between Ayala Corp. and SingTel earns P0.25-per-text-message sent. Currently, it handles an average of 300 million text messages daily. To prevent Globe subscribers from switching to other networks, Ablaza said the company continues to offer more services to strengthen ties relationships with its customers. “Each of our subscribers has a different set of needs. It is very important to have the right combination of tariffs or pricing with the services that are relevant to each of those segments, as well as the ability to communicate in different ways with those segments,” he The company spent a total of P 3.1 billion in capital expenditures (capex) in the first quarter, as part of its programmed spending of P17 billion, roughly $350 million, for this year, up from the P14.8 billion that Globe spent in 2006. Of the amount, $190 million is earmarked for broadband services and the remaining will be spent to bankroll the rollout of its 2G (second generation) network. Ablaza said Globe will spend almost $190 million for broadband services next year. The company is also investing in the back-end facilities needed to support its broadband thrusts and to meet the growing demand for international bandwidth. Globe will participate in a new cable project spearheaded by VSNL International, a member of the Tata Group of Globe will be the exclusive landing party in the Globe’s net profit in the first quarter declined by 25 percent to P2.6 billion, mainly due to the prepayment of a $300-million bond it made last month. “The momentum in the first quarter continued in April. We hope this will continue in the second and third months of this quarter,” said Ablaza. |
Sunday, June 28, 2009
050807: Potential telco market: 15M
Thursday, June 25, 2009
050507: IPVG net income more than doubles in 2006
By Zinnia B. Dela Peña
The Philippine Star 05/05/2007
Listed information technology and gaming company IPVG Corp. posted a net income of P102.14 million last year – more than double its profit in 2005 – driven by the strong performance of its online computer games and facilities outsourcing businesses.
In a financial report filed with the Philippine Stock Exchange, IPVG said revenues jumped more than eight-fold to P242.7 million from only P29.84 million.
IPVG said the substantial increase was due to the commencement of commercial operations of E-Games and the full operations of IT subsidiary
IPVG has formed IP-Converge Data Center, IP-EGame Ventures Inc. and
IP-Converge provides a wide array of Internet data center services, transport and connectivity solutions, IT consultancy, and systems integration services at international standards. It operates the only truly carrier-neutral, international, telco-grade Internet data center facility in the
As the first and only Philippine-based provider with direct connectivity to the Hong Kong Internet eXchange (HKIX) via its Hong Kong PoP (point-of-presence), IP-Converge offers premium IP-transport and connectivity services to and within the Asia Pacific region. It is the preferred Philippine partner of international carriers PCCW Global and Asia Netcom due its network connections with major Philippine telecommunications providers.
Last March, IP-Converge signed an agreement with First Cagayan Leisure & Resorts Corp. to form a joint venture company, First Cagayan Converge Data Center, that will engage in the business of information technology such as IP communication, co-location, bandwidth, disaster recovery services, software development, Internet merchant payment processing and payment solution and other value-added services to the licensed locators of First Cagayan, as well as to Cagayan Economic Zone Authority.
To support its continued growth in 2007, IP-Converge is building another 300-square meter facility at the RCBC Plaza, which will be operational in the third quarter, to meet the growing demand from current and prospective clients.
IP-E Games, on the other hand, has secured licensing rights to locally publish various on-line games from Terra ICT in June 2005, and Ran Online from Goldsky/Feya Technologies in November 2005.
E-Games started commercial operations in March last year and now operates the top two online games in terms of number of subscribers in a market with explosive growth. Ran Online represents the top MMORPG (massively multiplayer online role playing game) in the country while O2Jam leads the MMO casual games market.
http://www.philstar.com/philstar/NEWS200705050702.htm
050707: Lower operating cost trims Uniwide Sales's 1Q loss
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| By Honey Madrilejos-Reyes |
| Reporter |
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| RETAIL trader Uniwide Sales Warehouse Club Inc. managed to trim down its first quarter loss to P30.46 million from P69.01 million a year earlier. The improvement mainly came from a reduction in its operating expenses from P92.41 million in 2006 to P68.11 million in the same comparable period. “The improvement in operating expenses can be attributed to the rationalization of personnel related cost, decline in occupancy-related cost and the reduction of various office and store expenses,” the company said in a report to the Securities and Exchange Commission (SEC). Consolidated revenues, however, fell 57 percent to P89.27 million versus P209.96 million because of low turnover from its supermarket operations. The company is now in its fifth year of rehabilitation. A review of the group’s operations for the past four years shows the need for a revised operating strategy to recover from its financial problems. “Pressed for lack of fresh capital, it needs to resort to other business strategies for it to recover from the losses it has been continuously incurring,” Uniwide Sales said in its report. Uniwide also added that appraisal of other properties—which may be considered for payment to unsecured creditors—is ongoing. “To satisfy the obligation to…unsecured creditors, the company is considering some measures including the payment of liabilities through dacion of available free assets of the company,” it said. Uniwide has started doing the inventory of available free assets to be used or dacioned to creditors in place of cash payment. Final list of the free assets and the amount of liabilities these assets can cover would be available within this quarter. The warehouse club concept involves offering consumers a wide range of products at low prices in a “no frills” environment. The products sold by Uniwide Sales outlets range from groceries and household goods to electrical appliances and recreational goods. The company is a unit of listed Uniwide Holdings Inc. (UHI). On June 25, 1999, UHI group, together with the other members of the Uniwide Group of Companies, filed a petition with the SEC for the declaration of temporary suspension of all debt payments, which the SEC approved on June 29, 1999. On April 11, 2000, the SEC approved Uniwide’s Amended Rehabilitation Plan and declared Uniwide in a state of Suspension of Payments. On October 12, 2001, Uniwide filed its Second Amendment to the Rehabilitation Plan, which the SEC approved on December 23, 2002. |
050707: Globe's profit sags on debt payment
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| By Lenie Lectura |
| Reporter |
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| GLOBE Telecom Inc.’s net profit declined 25 percent to P2.6 billion in the first quarter of the year, owing to the prepayment of a $300-million bond it made last month. The country’s second largest phone firm reported over the weekend that it absorbed P1.2-billion non-recurring, after-tax impact of the early redemption of its bonds originally due in 2012. The cellular firm’s core profit, which strips out currency and derivative gains, reached P3.7 billion. Globe, which is jointly owned by Ayala Corp. and Singapore Telecommunications (SingTel), closed the first quarter with a cellular subscriber base of 17 million. It added 1.3 million new subscribers during the first three months of the year from 15.7 million at end-2006. All the numbers have been rounded out. The company’s postpaid and prepaid subscriptions grew 49 percent year-on-year, with Touch Mobile continuing to top its income base. Revenues rose 10 percent to P15.6 billion as it recorded 11 percent and three percent growth from the wireless and wireline segments, respectively. Earnings before interest, taxes, depreciation, and amortization jumped to a record P10.4 billion. “We will work hard to sustain this strong start into the rest of the year, by continuing to focus on improving operational efficiencies and on enhancing our customers’ experience,” said Gerardo C. Ablaza Jr., president and chief executive officer. The company spent P3.1 billion in capital expenditures January to March as part of its programmed spending of P17 billion this year. Globe spent P14.8 billion in 2006. The company is also investing in back-end facilities to support its broadband thrusts and meet the growing demand for international bandwidth. Globe will be participating in a new cable project spearheaded by VSNL International, a member of the Tata Group of Globe will be the exclusive landing party in the “We remain excited about broadband and all the possibilities that it brings to our nation,” Ablaza said. “We intend to be at the forefront of this opportunity and look forward to delivering on our mission to bring the Internet to every Filipino home, classroom and business.” |
050407: Petron profit down slightly to P953M in first quarter
By Donnabelle L. Gatdula
The Philippine Star 05/04/2007
Petron Corp. reported yesterday a net income of P953 million for the first quarter of 2007, slightly lower than the P1 billion earnings posted in the same period last year.
Petron president Khalid D. Al-Faddagh attributed the drop in earnings to the expiration of the income tax holiday on the company’s mixed xylene project last December.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), however, grew nine percent to P2.43 billion from P2.23 billion a year ago.
The company official noted that the growth in operating income resulted from their continuing efficiency program.
The oil firm’s revenues declined 17 percent, reflecting lower average oil prices for the quarter as well as lower sales volume.
Domestic sales remained weak as local oil demand continued to contract, while the company’s export sales also declined due to unfavorable international prices particularly in January. Total volumes fell by 13.3 percent.
"We managed to maintain our resilient performance because of the initiatives that we have implemented over the years, including the application of the latest technologies at various points of our supply chain and our ability to introduce innovative products," Al-Faddagh said.
Some of these technologies include the distribution optimizer software which lowers transshipment costs and generates vessel schedules more efficiently, the point of sales system that automates processes at service stations, and offsites automation at the Bataan refinery which allows for better inventory management.
Despite the slight dip in net income, Petron remains optimistic on its prospects as the commissioning of its new refinery facilities approaches. The company’s $300-million petrochemical projects will begin coming on-stream in the first quarter of 2008, starting with the petro fluidized catalytic cracker (PetroFCC). Apart from producing the petrochemical propylene, the PetroFCC will enable the company to convert more black products into higher-value white products (LPG, gasoline, diesel, kerosene).
Petron continues to be the leader in a market that has become highly competitive — with many players vying for volume even as demand continues to decline.
In the retail trade, it has successfully maintained its hold at the top spot through strategic network expansion and continuing innovation in its product and service offerings.
To meet the growing demand for automotive LPG, for instance, the company has increased the number of stations with Xtend autogas refilling facilities to 16 from only seven at the end of 2006.
Petron has also recently launched a new product that is friendly not only to the environment but also to the fuel budgets of motorists. The new, re-formulated XCS Plus is the first gasoline in the world powered by an organic combustion enhancer.
Petron chairman and CEO Nicasio I. Alcantara said the launch of XCS Plus is part of a larger strategy to continually introduce advanced fuel formulations to the market.
"This is essential in protecting our market leadership at a time when we are facing many challenges such as rising crude prices and stiffer competition," Alcantara said.
050407: Security Bank earnings jump 40% to P757M in first quarter
By Ted P. Torres
The Philippine Star 05/04/2007
Security Bank Corp. registered a 40 percent growth in net earnings in the first three months of 2007 to P757.6 million from P540 million in the same period last year, the bank said in a statement.
It said a major driver for the strong profit growth was the 23 percent increase in revenues over the same period last year to P2.2 billion.
This led to a 19 percent improvement in net interest income and 27 percent growth in non-interest income, including increase in net interest margins by 38 percent in earning assets to P129.3 billion.
The robust growth in earning assets helped defray the impact of a 273-basis point decline in average interest rates from the same period last year, the bank added.
The increase in earning assets was complemented by a 67.8 percent build-up in total deposits over the same quarter last year to P101.4 billion.
Savings deposits doubled to P73.4 billion, while time deposits likewise reflected a growth of 17.9 percent to P28 billion.
"We have placed a great deal of focus on the needs of our customers and diligently worked to provide them with a range of deposit and investment products tailored to their requirements," said Alberto Villarosa, Security Bank president and chief executive officer.
"The excellent growth in funding is an important component in our strategy to build a larger base of recurring revenues derived from lending activities. Coupled with our very healthy balance sheet and capital adequacy, we have both the funding and capital needed to sustain growth in the medium term," he added.
Security Bank chief financial officer Carlos Borromeo said that over the last three years, the bank built a respectable fixed income and investment product distribution business.
"Since these flows are customer driven, it is recurring in nature. In addition, having built a larger deposit base including the lower cost current accounts, we have created a stronger base of recurring deposit related fee-based income," Borromeo added.
Operating expenses were modestly higher at P927.4 million, up four percent over the first quarter of 2006.
Earnings per share grew to P2.30 over the P1.64 recorded for the comparable period last year. This equates to an annualized earnings per share of P9.20, higher by P3.43 or 59 percent than that recorded at year-end 2006.
050407: RFM profit contracts 50% on higher costs
By Zinnia B. Dela Pena
The Philippine Star 05/04/2007
Weighed down by higher production costs, Concepcion-owned food and beverage concern RFM Corp. reported a 50 percent drop in net profit last year to P144.25 million from P288.75 million in 2005.
In a financial report filed with the Securities and Exchange Commission, RFM said net sales reached P3.83 billion as against P4.125 billion while cost of goods sold declined to P3.16 billion from P3.38 billion.
Gross profit likewise fell to P667.93 million from P740.63 million. Interest income also decreased to P19.15 million from P33.51 million.
While other income jumped 293.2 percent to P64.33 million, selling and marketing expenses grew to P410.01 million from only P357.18 million.
"Increased production costs coupled with the constraint in raising selling prices due to tighter competition negatively affected gross profit on food business," RFM said.
RFM is banking its growth strategy on manufacturing and selling affordable, quality food and beverage products for the mass market. It is developing new products that are priced within the reach of the broader income classes who put priority on getting value-for-money from their daily food purchases.
Last year, RFM launched what it calls the people’s milk, Selecta Fortified Milk. It has since then gained overwhelming market acceptance for its exceptionally good taste and reasonable price.
RFM’s property unit, Philippine Townships Inc., posted a net income of P26 million last year, a reversal of the P216 million loss incurred the previous year, mainly due to sales from its residential condominium projects.
As of end 2006, RFM’s total assets stood at P9.4 billion, up six percent from P8.9 billion.
Bank loans also rose six percent as RFM’s property business obtained loans from various banks to finance ongoing projects.
RFM also makes and markets Fiesta pasta and White King flour mixes, ready-to-drink Sunkist juice and tea, Swift processed and canned meats, and Selecta ice cream in joint venture with Unilever.
050407: SEC okays Ayala Corp capital hike to P37B
By Zinnia B. Dela Peña
The Philippine Star 05/04/2007
The Securities and Exchange Commission (SEC) has approved the increase in the capital stock of Ayala Corp. from P26 billion to P37 billion and its proposed 20 percent stock dividend.
Entitled to Ayala Corp.’s stock dividend are those stockholders of record as of May 22. The dividends are payable on June 18.
Also approved by the SEC is the capital hike of Ayala Corp.’s property unit Ayala Land Inc. (ALI) from P12 billion to P20 billion and its declaration of a 20 percent stock dividend to shareholders of record as of May 22.
Ayala Corp.’s share price has been the best performing large-cap stock on the Philippine Stock Exchange last year, nearly doubling in value and outperforming the main index.
The conglomerate’s total return to shareholders last year was at 89 percent, the highest it achieved in over a decade.
In the past five years, the market value of Ayala Corp.’s property, banking and telecommunications businesses more than doubled and in some cases, tripled. ALI’s present market value of P165 billion is more than three times what it was in 2001 while Bank of the Philippine Islands’ (BPI) current market value of P168 billion is almost two times larger than it was five years ago.
Ayala Corp. posted a net profit of P12.2 billion last year, up 49 percent from the previous level, mainly due to the strong performance of its subsidiaries and affiliates, lower interest expense, and gains from asset sales.
ALI, meanwhile, reported a seven percent increase in net profit last year to P3.9 billion on the back of a 20-percent growth in revenues.
050407: Petron's 1Q net income lower at P953M
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| By Paul Anthony A. Isla |
| Reporter |
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| PUBLICLY listed Petron Corp. said Thursday it posted a net income of P953 million in the first quarter of the year, slightly lower than P1 billion a year earlier. The tax break Petron got for sales of Mixed Xylene last December has expired, cutting through its income base. Petron said its earnings before interest, taxes, depreciation, and amortization actually grew 9 percent to P2.43 billion from P2.23 billion in the same comparable period. Petron said the growth in operating income reflects the efficiency programs of the company. Revenues declined 17 percent, reflecting lower average oil prices for the quarter as well as lower sales volume. Domestic sales weakened as oil demand continued to contract. The company’s export sales also declined due to unfavorable international prices particularly in January, while total volumes fell by 13.3 percent. “We managed to maintain our resilient performance because of the initiatives that we have implemented over the years, including the application of the latest technologies at various points of our supply chain and our ability to introduce innovative products,” said Petron president Khalid D. Al-Faddagh. Despite the income dip, Petron remains optimistic about its prospects as its new refinery facilities will soon be commissioned. Petron’s $300-million petrochemical projects are expected to come on-stream in the first quarter of 2008, starting with the Petro Fluidized Catalytic Cracker (PetroFCC). Apart from producing propylene, the PetroFCC will enable the company to convert more black products into higher-value white products, such as LPG, gasoline, diesel and kerosene. Petron continues to be the leader in a market that has become highly competitive—with many players vying for volume in the face of declining demand. In the retail trade, it has successfully maintained its hold on the top spot through strategic network expansion and continuing innovation in its product and service offerings. To meet the growing demand for automotive LPG, the company has increased the number of stations with Xtend autogas refilling facilities to 16 from only 7 at the end of 2006. Petron also launched a new, environment-friendly product that is also easy on the motorist’s budget. The new, reformulated XCS Plus is the first gasoline in the world powered by an organic combustion enhancer—the result of a two-year research and development process. “The launch of XCS Plus is part of a larger strategy to continually introduce advanced fuel formulations to the market,” Petron chairman and chief executive Nicasio I. Alcantara said. “This is essential in protecting our market leadership at a time when we are facing many challenges such as rising crude prices and stiffer competition.” |
http://www.businessmirror.com.ph/0504&052007/companies04.html
050407: Stocks end sideways as investors cash in gains
The Philippine Star 05/04/2007
Share prices closed flat yesterday as investors cashed in on early gains and adopted a cautious stance ahead of the upcoming May 14 mid-term elections, dealers said.
The composite index slipped 0.46 points to 3,271.53 after trading between 3,263.49 and 3,293.35.
The broader all-share index fell 2.14 points to 2,079.56.
Gainers and losers were even at 48 each, with 61 stocks unchanged.
Turnover was 5.8 billion shares worth P3.9 billion.
"Investors were very tentative. They bought stocks in early trade when the market was moving up but were also quick to take profits when it became apparent that the market could not get out of the 3,300 points range," said Rommel Macapagal of Westlink Global Equities.
He said investors also opted to wait for the release next week of corporate results for the three months to March from the likes of San Miguel, Philippine Long Distance Telephone (PLDT), Globe Telecom and Ayala Corp.
Macapagal said the approaching mid-term elections weighed on sentiment.
"While the elections are generally seen to be peaceful, investors were still reluctant and would rather play safe, avoiding unexpected negative developments," he added.
The government has stepped up security measures ahead of the May 14 polls when Filipinos will elect 12 senators, over 200 congressmen and thousands for local government positions, amid rising election-related violence.
Banking stocks led the market’s decline on speculation inflation rose at a faster pace in April.
"A rise in inflation will create pressure on interest rates and the cost of doing business,’’ said Astro del Castillo, managing director of First Grade Holding Inc., a financial management and advisory company. "It is a good time to lighten your load in equities.’’
Limiting declines, energy and consumer stocks rose on speculation demand for electricity and consumer spending will rise after the government said economic growth will accelerate in the next three years and Texas Instrument Inc. said it will invest $1 billion in the country.
Consumer prices in April probably rose 2.4 percent from a year earlier, according to the median estimate of 13 economists surveyed by Bloomberg News, accelerating from a seven-year low of 2.2 percent in March. — AFP