NLEX sets P16-B revenue target

March 5, 2019 | 12:10 am

Harbor Link Segment 10 tollway — NLEX Corp. is hoping to start collecting an add-on toll fee of P9 for the Harbor Link.

NLEX CORP. is targeting to generate P16 billion in revenues this year, with the opening of the North Luzon Expressway (NLEx) Harbor Link Segment 10.
Luigi L. Bautista, president of NLEX Corp., told reporters last week that the company is looking to increase revenues by 33% this year.
“This year is P16 billion. Last year, we made P12 billion,” he said when asked about the revenue target for 2019.
Mr. Bautista said the revenue target is based on the assumption the company would start collecting an add-on toll fee of P9 for the Harbor Link, which is a 5.65-kilometer extension of NLEx from Karuhatan, Valenzuela City to C3, Caloocan City.
“(The increase will be) driven by traffic growth. Because last year we didn’t have any toll rate increase… (Harbor Link) will bring additional revenue to us…P9 add-on toll ito eh [This is worth an add-on toll of P9],” he said.
Aside from the add-on toll for Harbor Link, NLEX Corp. also has pending toll adjustments that were due to take effect in 2013 and 2015 worth P3 billion.
Another toll operator under Metro Pacific Tollways Corp. (MPTC), Cavite Infrastructure Corp., also sought a compensation of P877 million from the government for toll hike petitions due in 2012, 2014 and 2015.
The Metro Pacific group said in August 2018 it was willing to drop its arbitration case against the government for the delayed toll adjustments, which as of June 2017, was estimated to reach some P7.5 billion for both NLEx and Manila-Cavite Expressway (CAVITEx).
Mr. Bautista said on Thursday they are still hoping the government would act on the long-overdue toll fee adjustments soon.
MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Belle earnings drop 8% despite higher revenues

March 5, 2019 | 12:09 am

SY-LED BELLE Corp. posted an eight percent decline in earnings in 2018, amid higher revenues due to its share in City of Dreams Manila’s gaming revenues.
In a statement issued Monday, Belle reported a net income of P3.2 billion last year, lower than the P3.5 billion it generated in 2017. The listed firm, however, noted that recurring profit, which excludes capital gains on sales of non-core investments and extraordinary items, stood at P3.6 billion, 10% higher year on year.
Consolidated revenues, meanwhile, rose six percent to P8 billion, after its subsidiary Premium Leisure Corp. delivered a 23% increase to P3.2 billion in its share of gaming earnings from the City of Dreams Manila.
The City of Dreams Manila is one of the three operating integrated resort and casinos in the state-run Entertainment City in Parañaque City. Belle is leasing out the property on a long-term basis to Melco Resorts and Entertainment (Philippines) Corp. (MRP), out of which it also gets a share of gaming earnings.
Belle also benefited from its real estate business as it booked a nine percent uptick in revenues to P3.4 billion from P3.1 billion in 2017. Bulk of this came from the lease of land and buildings to MRP for the City of Dreams Manila worth P2.4 billion.
The company’s Tagaytay Highlands and Midlands residential and leisure complexes provided the other P979 million in revenues, 19% higher year on year.
Belle currently has more than 800 hectares under its land bank intended for future development.
Meanwhile, the company declared a total dividend payment of about P1.2 billion, translating to a regular dividend of 12 centavos per share. The dividends will be distributed on March 28 to stockholders of record as of March 14.
Belle is among the equity investments of the Sy-led SM Investments Corp., whose core interests involve retail, banking, and property.
Shares in Belle jumped 1.18% or three centavos to close at P2.58 each at the stock exchange on Monday. — Arra B. Francia

Spielberg says Netflix and theater films aren’t equal for the Oscars

March 5, 2019 | 12:09 am

STEVEN SPIELBERG is taking on Netflix, Inc.
At this year’s annual post-Oscars meeting, the filmmaker, who’s representing directors as an Academy governor, will speak out against considering streamed films for awards, IndieWire reported. He feels that the streaming service should only compete for Emmy awards, the entertainment industry news site said.
“Steven feels strongly about the difference between the streaming and theatrical situation,” a spokesperson from Amblin, Spielberg’s production company, told IndieWire, adding that the Hollywood director hopes others will join his campaign at the meeting next month. “He will see what happens.”
Netflix made Roma available to stream with a limited release in theaters to qualify for an Oscar this year.
Mr. Spielberg, who has won a best picture award with Schindler’s List, is one of the three Academy governors of the directors branch, one of 17 that make up the film body. The Board of Governors sets the Academy’s strategic vision, preserves the organization’s financial health and assures the fulfillment of its mission, according to the Oscars website.
Roma was the favorite to win the Academy Award for best picture before Green Book took the prize at the awards last weekend. Before the event, Roma had a 33% chance of winning, according to the Hollywood Reporter, while the Gold Derby gave it a 4-1 shot.
Roma was the first nominee for best picture that was essentially a digital release and if it had won, Netflix would have been the first technology company to clinch Hollywood’s top prize. — Bloomberg

Meralco-led consortium takes over Ghana power distribution utility

March 5, 2019 | 12:08 am

MANILA ELECTRIC Co. (Meralco) on Monday said the assets and operations of the Electricity Company of Ghana (ECG) had been handed over to the consortium participated in by the distribution utility.
In a disclosure to the stock exchange, Meralco said the assets were transferred on March 1 to Power Distribution Services Ghana Ltd. (PDS), a consortium that includes Meralco through Meridian Power Ventures Ltd., AEnergia SA, an Angolan company, and three Ghanaian firms, namely: TG Energy Solutions Ghana Ltd., Santa Power Ltd. and GTS Power Ltd.
“The hand-over was pursuant to the award to the PDS Consortium, which will be the electricity service provider in all of ECG’s operational areas in the Southern Distribution Zone of Ghana, under a 20-year Concession Agreement approved by the Government of Ghana,” it said.
“ECG’s assets would be leased to the PDS, the concessionaire, while the ECG would become an Asset Holding Company, and after the end of the Concession, all assets would be transferred back to it,” Meralco added.
Meralco said the PDC consortium intends to invest $580 million as capital expenditure. The consortium is expected to strengthen the governance, management and operations of the ECG and improve the delivery of power to end users as well as support Ghana’s socio-economic growth.
On Monday, shares in Meralco rose by 0.87% to close at P370.20 each.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

Facing sluggish TV ratings, Nickelodeon looks to stage

March 5, 2019 | 12:08 am

WITH KIDS’ TV in a ratings slump, Nickelodeon is looking to increase its presence on the stage.
The cable network, part of Viacom Inc., is expanding a relationship with Cirque du Soleil’s VStar Entertainment that will turn more of its franchises into theatrical shows. The five-year agreement will put characters such as Dora the Explorer and Paw Patrol on stage together for the first time, and VStar will be able to further mine Nickelodeon’s library for entertainment ideas.
Theater and ice shows for young kids have become big business. Nickelodeon teamed up with VStar in 2016 with an onstage version of its puppy-driven Paw Patrol series, and the shows went on to sell 3 million tickets worldwide. Cirque du Soleil, known more for acrobatics and other circus-style acts, acquired VStar in 2018 as part of efforts to diversify its operations.
The first show under the new deal, Move to the Music, will feature a mix of characters such as genie friends Shimmer and Shine. It will debut in the fall. Terms of the agreement weren’t disclosed.
Nickelodeon’s TV ratings have been declining, though Viacom, Inc. Chief Executive Officer Bob Bakish said last week that there are signs of improvement.
Cirque du Soleil, a Montreal-based company that also owns the Blue Man Group, has built a war chest for acquisitions. It announced plans to acquire the Illusionists magicians troupe last month. — Bloomberg

Infrastructure projects, POGOs to drive property sector growth

March 5, 2019 | 12:07 am

By Bjorn Biel M. Beltran
Special Features Writer
GOVERNMENT-LED infrastructure projects, Philippine offshore gaming operators (POGOs), and emerging urban centers outside Metro Manila, among other factors, are poised to drive further growth in the real estate industry this year.
This is according to property brokerage and consultancy firm PRIME Philippines in its Philippine Real Estate Outlook for 2019, which saw “upbeat and positive growth potential” in the property sector.
PRIME noted infrastructure development, led by the Duterte administration’s “Build, Build, Build” program, is one of the key contributors towards this positive outlook, with connectivity projects like the Manila-Clark railway pushing major developers towards certain hotspots around Metro Manila.
“With the recently opened and upcoming infrastructure projects of the government in place, developers are now on track to getting and developing the most strategic locations in and out of Metro Manila,” the report said.
“Similarly, general connectivity from Metro Manila to nearby provinces of Bulacan, Cavite, Laguna, and Pampanga, among others, is also expected to drive developments outside, decongest the metro and develop the regional urban centers, particularly in Central Luzon,” it added.
Among such regional hotspots, the Clark area in Pampanga has attracted the most interest from major developers owing to key infrastructure projects throughout the province, such as the Subic-Clark railway, Manila-Clark railway, and the PNR North railway. Developers like SM Prime, Century Properties, Ayala Land, and Megaworld have all begun to set up shop, and more are sure to follow.
“Normally if there are big players already in the area, the secondary developers also come in to play,” PRIME Philippines Founder and CEO Jettson Yu said during a panel discussion of the company’s report.
“[It won’t be] any time soon, but if you wait 10 years, definitely Clark, Pampanga will be a bustling city up north,” Mr. Yu said.
Moreover, according to the report, Pampanga is the primary choice of POGOs looking to expand outside Metro Manila due to the large workforce available in the area.
POGOs, which are largely responsible for the Bay Area’s transformation into a bustling commercial district and its primary driver of growth, are looking for available bulk office spaces to support their growing businesses.
“Pampanga has been a primary choice considering the large workforce available in the area. Aside from that, other urban centers with large employable population such as Cavite are also options for online gaming operators to expand their businesses due to its proximity to key access points in the metro,” the report said.
Players in the commercial retail sector are also setting their sights on locations outside Metro Manila for growth. PRIME Philippines noted that SM Prime Holdings, Inc.’s last 10 mall ventures are in the provinces, with SM Center Ormoc being the latest addition from 2018, and the first SM mall in Eastern Visayas.
Other developers like Megaworld Corp., Vista Land & Lifescapes, Inc., and Robinsons Land Corp. are expanding their footprint in areas like Cebu, Davao, Iloilo, Laguna, and La Union.
“For 2019 alone, large retail developers, except Ayala Land, have already tapped targeted underserved yet developing cities outside Metro Manila. Davao is one of the common denominators with these developers signaling the growing confidence on the market and spending capacity in the region,” the report added.

DoE panel reviews First Gen’s LNG import terminal

March 5, 2019 | 12:07 am

A PANEL at the Department of Energy (DoE) is scheduled to review this week the application of Lopez-led First Gen Corp. to build a liquefied natural gas (LNG) import terminal before the project proposal is submitted to the secretary for final approval.
DoE Undersecretary William Felix B. Fuentebella said the DoE’s centralized review and evaluation committee (CREC) is set to review First Gen’s proposal, which he said is likely to pass scrutiny and receive a “notice to proceed” from the the panel.
“Patapos na ’yung isa (It’s almost complete),” he said when asked about the status of the proposal at the DoE.
Asked whether First Gen is likely to receive a notice to proceed, he said: “I think so. Ipi-present pa ito sa (It will still be presented to) CREC. But the recommendation is buhay siya at maganda siya (it’s active and its good).”
On Dec. 21, 2018, First Gen said its subsidiary FGEN LNG Corp. had sought clearance from the DoE to proceed with the construction of the group’s LNG project. Earlier that month, the company announced the signing of a joint development agreement with Tokyo Gas Co., Ltd. to pursue the import terminal project.
The agreement comes after recent pronouncements from the government describing LNG as vital to ensuring the country’s energy security once the Malampaya gas field is depleted.
Mr. Fuentebella said the project had been included in the agenda of CREC, which will decide on the project ahead of the formal issuance of a “notice to proceed.” He added that recommendations for the project appears to be “positive.”
Under First Gen’s proposal, Tokyo Gas will take a 20% participating interest in the LNG project and provide support in development work to achieve a final investment decision.
Upon reaching that decision under the joint development agreement, the parties will enter into a definitive agreement to proceed with the construction of the project, First Gen had said.
Mr. Fuentebella said another LNG project proposal, that of US-based Excelerate Energy L.P., was lacking the required supporting documents and might be disapproved.
The DoE previously said that Excelerate had filed on Dec. 27, 2018 its plan to build an LNG facility in the Philippines, making it the fourth company to do so.
The US company, which is based in Texas, plans to build a floating storage regasification unit (FSRU) off the Batangas area, DoE officials had said.
The DoE approved the construction of the LNG projects proposed separately by Phoenix Petroleum Philippines, Inc. and Energy World Gas Operations Philippines Inc., the local unit of Australia’s Energy World Corp. Ltd. — Victor V. Saulon

Netflix’s Motley Crue rock biopic: a tale of success, excess, and ants

March 5, 2019 | 12:07 am

LONDON — Sex, drugs and rock ‘n’ roll: a new movie about the antics of 1980s metal hellraisers Motley Crue, a band known as much for their hedonism as their music, has it all.
The Dirt, based on the band’s best-selling autobiography, charts the rise of four Californian youngsters who channel the punk rage of the 1970s into the big-haired rock genre that, for many people, defined the 1980s.
Like the hugely successful Queen movie Bohemian Rhapsody, it is a rags-to-riches tale of flamboyant showbiz glory and the perils of a rock ‘n’ roll lifestyle.
“I think that’s what’s exciting for people about the Queen movie: there’s a band who wrote their own music, they were their own personalities and they lived their life the way they lived their life,” Motley Crue founder Nikki Sixx told Reuters.
“It’s the same for Motley Crue.”
The film begins with a neglected young Sixx being taken into care after cutting his own arm and blaming it on his drunkard mother — setting up a theme of self-abuse that runs through a story where Jack Daniels flows like water and anything sniffable goes up the musicians’ noses.
A standout scene is when Motley Crue are touring with Ozzy Osbourne who, when he discovers they have no spare cocaine to give him, crouches down and snorts a line of live ants from the floor.
“It was somebody that we looked up to, and still look up to, who was wild, and we were a wild young band,” Sixx said. “We thought we could compete with that, but you can’t with Ozzy, he won!”
While viewers will draw inevitable comparisons to the 1984 heavy metal mockumentary This Is Spinal Tap, Sixx said he hoped The Dirt had some of the emotional heft and “graininess” of Boogie Nights or even Goodfellas.
“Everyone thinks that Motley Crue glamorized drugs and sex — well that’s not true,” said Allen Kovac, the band’s manager and one of the film’s producers.
“The Beatles glamorized LSD… Keith Richards glamorized heroin. What we wanted to do is to deglamorize it — show what can happen to people, their families, their friends. And I think accomplishing that… took courage by the band.”
The Dirt will be released on Netflix on March 22. — Reuters

KMC Solutions opens 36th co-working space in Alabang

March 5, 2019 | 12:06 am

By Vincent Mariel P. Galang
Reporter
KMC SOLUTIONS launched its 36^th co-working and office space in Filinvest City in Alabang, Muntinlupa City.
“This particular area, Filinvest City, is future ready. It has very good road infrastructure. It has transportation hubs that are very near here. The South Station is just less than a kilometer away, and then… Festival Mall, which we all know, has a lot of transportation options, as well,” Tracy G. Ignacio, chief operating officer of KMC Solutions said during the launch on Feb. 21.
While the area is booming, Ms. Ignacio noted Filinvest City also has space for future development and growth.
“The vacancy in this particular area is very low. All offices that got built got sold. Really, it’s a booming location,” she added.
Ms. Ignacio cited a study by KMC Savills, which found that vacancy in the area has remained below 5% and is expected to remain at the same level in the next two years.
KMC currently occupies one floor in the One Griffinstone building in Filinvest City, a township development by the Filinvest Development Corp. (FDC). The 1,600-square meter (sq.m.) facility can accommodate around 270 workstations. It also features private offices that can accommodate up to a hundred people depending on the set up.
All private offices have floor to ceiling windows, and have a manager’s office that can be converted into a meeting room. The offices have a community area, where members can engage with each other.
Other amenities include a pantry, conference rooms, phone booths, clinic and lactation room, and a training room for health activities like yoga and pilates.
“We really want to make our facilities where… if had you to work on a Saturday or a Sunday, should you work from home? Should you work from a coffee shop or you can come back to a KMC Office? We want to make it that attractive,” Gregory Kittelson, chairman and co-founder of KMC Solutions, said during the launch.
The One Griffinstone building is also Philippine Economic Zone Authority accredited, which makes it a good location for foreign companies. It is currently at its pre-leasing, which is now at 20%.
KMC Solutions officials noted Muntinlupa is the ninth city where the company has a presence in, after Makati City, Quezon City, Pasay City, Mandaluyong City, Taguig City, Pasig City, Iloilo City, and Cebu City.
In the first two months of 2019, KMC Solutions launched five floors, including the Alabang Site, while two are in Ortigas and two are in Makati.
“This year will be a very big year for KMC as we expand aggressively. From now until the end of the year, we’re projecting to have 4,000 more seats, and that’s about 20,000 sq.m. of office spaces across different places because again we want a KMC near you,” Ms. Ignacio noted.
Currently, the co-working space provider has 57,151 sq.m. of space or 10,367 seats across different cities. By the end of the year, it targets to add about 20,185 sq.m. of space or about 3,863 seats to its portfolio. This should bring its total footprint to about 77,236 sq.m. or more than 14,229 seats.
“These are a lot of numbers, but at the end of the day if we look at these numbers… that means 14,000 jobs. It generates 14,000 jobs in different areas of the Philippines, so that’s what we try to contribute. Not just as a company that is profit relevant, but also as a contributor to the entire economic growth of the Philippines, as well,” Ms. Ignacio said.

Ayala Corp. in talks with Go-Jek for PHL venture

March 5, 2019 | 12:06 am

AYALA CORP. is looking to hitch a ride on Go-Jek’s Southeast Asia expansion with a possible investment in the ride-hailing company’s Philippine venture as it takes on regional giant Grab.
Go-Jek and the Philippines’ oldest conglomerate are in talks to bring in a new contender to ply Manila’s gridlocked streets, two people involved in the discussions said. Ayala Corp.’s corporate communications head Yla Alcantara didn’t immediately reply to mobile-phone calls and text messages seeking comment. A representative of Go-Jek declined to comment.
Go-Jek is awaiting regulatory approval to enter the Philippine market after its initial application was denied for breaching foreign ownership restrictions. Ride-hailing apps are considered public transport utilities in the Philippines and must have at least 60% local equity.
If a deal pushes through, it will be the latest technology play for Ayala, after it bought a stake in Zalora’s local unit and subsequently put up a logistics platform Entrego. Ayala Corp. was up 0.5% at the noon break in Manila, while the Philippines’ benchmark stock index was little changed.
After its expansion to Vietnam, Singapore and Thailand, the Philippines could hold much promise for Go-Jek with its young, digitally savvy population held hostage by poor infrastructure. Local players have failed to make a dent on Grab’s market share last year, estimated at more than 90% since its merger with Uber. — Bloomberg

Fox ordered to pay $179M to Bones actors, producers

March 5, 2019 | 12:06 am

TWENTY-FIRST Century Fox Inc. was ordered to pay $179 million in a case brought by four Bones actors and producers who claimed they were cheated out of their share of profits from the hit TV series.
Actors Emily Deschanel and David Boreanaz and two producers alleged that Fox deflated the profitability of the show by licensing it at artificially low fees to Fox’s broadcast network and the streaming service Hulu, which Fox co-owns.
Fights between studios and producers are common now that consolidation and streaming TV have upended the economics of TV shows. Many companies are producing and selling shows for sister networks and streaming services instead of selling them.
Bones, which ran on Fox’s broadcast network from 2005 to 2017, was always a well-rated show though never one of TV’s biggest hits. The judge criticized senior Fox executives, including Peter Rice, Gary Newman, and Dana Walden. Mr. Rice and Ms. Walden are both joining Walt Disney Co. once that company completes its acquisition of some of Fox’s entertainment assets.
The Feb. 4 arbitration award includes $129 million in punitive damages to “punish Fox for its reprehensible conduct and deter it from future wrongful conduct.”
“The ruling by this private arbitrator is categorically wrong on the merits and exceeded his arbitration powers,” Fox said in a statement. “Fox will not allow this flagrant injustice, riddled with errors and gratuitous character attacks, to stand and will vigorously challenge the ruling in a court of law.”
Disney wasn’t involved in the arbitration. Chief Executive Officer Bob Iger issued a statement in support of the two Fox executives.
“Peter Rice and Dana Walden are highly respected leaders in this industry, and we have complete confidence in their character and integrity,” Mr. Iger said.
Lawyers for the actors and producers filed a petition to confirm the arbitration award Wednesday in California Superior Court in Los Angeles. Fox filed a request to either correct or vacate the award. — Bloomberg

The Marison Hotel aims to secure four-star rating

March 5, 2019 | 12:05 am

LEGAZPI CITY — The Marison Hotel is aiming to bring a top-notch hospitality experience for visitors to this city in Albay province.
Just a stone’s throw away from the Legazpi Airport, the newly-opened hotel is seeking to attract both leisure and business travelers.
Daisy Uy-So, president and chief executive officer of the Marison Hotel, said they aim to offer a luxurious hotel experience to its guests.
Described as the biggest hotel in Legazpi, The Marison has 118 rooms, ranging from deluxe rooms to the suite. Some of the rooms have a terrace with a view of Mt. Mayon.
The hotel also has two outdoor swimming pools, a fitness center, function rooms, an Italian restaurant Il Morso, San’s Cafe, and the soon-to-be-opened Chilo Bar at the roof deck.
Tourist attractions such as Mt. Mayon, Cagsawa Ruins, Hoyop-Hoyopan Cave, Sumlang Lake and Vanishing Island are less than an hour away from the hotel.
In an interview with reporters last Feb. 6, Ms. So said The Marison is the fulfilment of the dream that her late father, businessman Chisan T. Uy, had to own his own hotel.
The Uy family’s main business involved the distribution of feeds and fertilizer, and they were initially planning to build commercial spaces on the two-hectare property.
However, her father wanted to venture into hotels, inspired by his friends who put up their own.
Now that the hotel has opened, the Uy family is now aiming to secure a four-star rating, as most of the other hotels in the city only have three stars.
“Apart from being the perfect base for anyone who wants to see the beauty and splendor of Legazpi, we offer maximum comfort and convenience for the whole family. The hotel is here to provide a luxurious experience for everybody, making it the best place to truly feel the warm Bicolano hospitality,” Ms. So was quoted as saying in a statement.
What sets The Marison Hotel apart from other establishments in the city, Ms. So said are its employees. The hotel’s employees are all locals who already have the necessary experience in hotel service.
“I can confidently say our asset is our people… Right from the start, I want them to have their values intact… Dito tulungan lang [we help each other],” she said.
“Second is when we see a problem, or even if we just foresee it, we do something about it ASAP.”
LEGAZPI TOURISM
The opening of The Marison Hotel is also seen to provide tourists with more options for accommodations.
In an interview with BusinessWorld, Benjamin F. Santiago, regional director of the Department of Tourism Region V said the addition of the 118 rooms from The Marison Hotel will boost the city’s efforts to become one of the top MICE (Meetings, Incentives, Conferences, and Exhibitions) destinations in the country. He said Albay attracted around 1.5 million tourists last year.
“Legazpi is now being positioned as a MICE destination… so we envision Legazpi will become a major convention city,” he said. — Vincent Mariel P. Galang