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Big brands dive into esports to court youth market — Nielsen

NEW YORK — From snack companies to carmakers, a wide range of brands is trying to reach one of the hottest demographic groups around: esports fans.

Those brands are finding their footing with 39% of brand exposure in esports’ competitive video game broadcasts coming from non-gaming related companies in 2018, Nielsen said in a report on Wednesday.

“Over all forms of entertainment, their biggest passion is video games,” Nicole Pike, Managing Director of Nielsen Esports, said of enthusiasts of professional video gaming.

Such companies are called “non-endemic” since they are not as naturally aligned with esports as those that manufacture gaming computers, consoles, chairs and other gear, for instance.

The list of non-endemic brands in the sector and already includes State Farm, Disney, Spotify, Toyota, Mastercard, Cheez-It, Hershey, Chipotle, Sephora, Wendy’s and Head & Shoulders, and is getting longer.

Viewership of esports — when fans watch in person or online as professional video game players compete — is expanding.

The bulk of fans are typically between 18 and 35 years old, referred to in the Nielsen report by esports sponsor Doritos as “emerging adults.”

They have more disposable income than other sports fans and many have cut the cord to traditional media.

In fact, 61% of esports viewers on Twitch, a main platform for watching esports streams, do not watch television on a weekly basis, according to Nielsen, making traditional forms of marketing a challenge.

Reaching out through esports does seem to work, since 90% of Twitch’s esports viewers can name at least one non-endemic sponsor, Nielsen found.

Brands seen as authentically interested in the space fare better than those that just slap their logo on a jersey, advertising and esports experts say.

PepsiCo’s PEP.O Doritos, for instance, sponsored a “Doritos Bowl” hosted by Twitch for a Call of Duty battle royale tournament between top streamers.

Fans watched nearly 550,000 combined hours of that tournament, Nielsen said.

When 20th Century Fox wanted to promote the digital release of its movie “Deadpool 2 Super Duper Cut,” it turned to the gaming advertising and talent agency Ader.

Ader partnered with top Fortnite influencer DrLupo and also created new custom designed Deadpool “emotes” — essentially emoji characters — that viewers use in Twitch chat windows.

An influx of non-endemic brands also adds credibility to the evolving esports ecosystem, said Chad De Luca, head of gaming and esports at Publicis Sport & Entertainment.

“It is a mark of approval from a blue-chip company,” he said. — Reuters

MFC young football players snatch silver medal in Singapore

MAKATI Football Club (MFC) is making young football players’ dreams come to reality.

Aside from winning the Boys 13’s (2006) Cup gold medal in the recently-concluded JSSL Singapore Professional Academy 7s in Singapore, MFC’s Boys 16’s (2003) side has something to cherish of.

After topping the group stage, MFC put a valiant stand and eventually won the silver medal, having a rare opportunity to play against Perth Glory FC Academy — Australia’s top-flight youth professional team.

“In the boys 16 division, those who top their division automatically qualifies into the 16 year old Pro division. Our boys were able to get a once in a lifetime opportunity to play against a pro team (Perth Glory FC from Australia),” said SeLu Lozano, chief operating officer of MFC.

“Some of these players will most probably be in the Australian national team and will eventually be competing in the World Cup. It is a dream experience for some of our youth players involved here.”

Adri Caraig, an Antipolo native whose brothers were all part of MFC, was delighted to be given a chance to showcase their talents in the biggest youth football tournament in Asia.

“It feels good to prove that we, Filipinos, can play a high level of football. This JSSL tournament gave a chance to experience the level of intensity of play in the professional division. My team and I worked hard to reach the finals. It is our chemistry and dedication that brought us to the much awaited pro division,“ said Caraig, who has been training with the seniors men’s professional team Stallions Laguna FC as part of his preparation for the tournament.

An MFC scholar like his brothers Jian (2004) and Jigs (2008), Caraig is currently studying in De La Salle Zobel where Lozano is managing the varsity teams, bringing his top players and giving them opportunity to get scholarship through sports.

MFC has played a very important role in developing young football athletes in Philippines since 1976, founded by its president Tomas Lozano, a former Real Madrid FC player.

A bad shot

A bad shot was how Paul George characterized Damian Lillard’s three-point buzzer beater that booted the Thunder out of the 2019 National Basketball Association Playoffs. He actually doubled down in his post-mortem, referring to it as “a bad, bad shot.” And had Game Five of their first-round series operated in a vacuum, he may well have been right; after all, it was taken from 37 feet out and reasonably contested despite separation efforts through a “pound dribble,” sidestep, and timely gather.

From Lillard’s vantage point, though, the second series-deciding winner of his career was nothing out of the ordinary; it was well within his range, and one of countless other long shots he has attempted, and, made, throughout his hoops career. The numbers bear him out; his percentage of makes on tries from beyond 30 feet during the regular season was far superior to the league norm from anywhere in three-point territory. More tellingly, it approximated that of George, who, in refusing to give due credit, thus wound up indirectly engaging in self-criticism.

What’s more, Lillard was especially locked on the other day. He hit the ground running, coming up with 34 markers at the half and continuing to exhibit a silky smooth touch despite the Thunder’s obvious overloads on coverage in an effort to prevent him from scoring. No doubt, he was stoked by the incessant trash talking of counterpart Russell Westbrook heading into and throughout the series, and resolved to deliver his response. He did, and, as he noted, it was “the last word.” And it was amplified by the stakes. Was it “a bad, bad shot”? Not if he had hitherto hit nine of 17 from three, including three of five from 30 feet out. Not if he was at 47 going on 50, with the prime opportunity to make a statement.

Hindsight always makes for perfect vision, but, really, Lillard couldn’t have scripted the outcome any better. He certainly proved he could walk the walk much better than Westbrook could talk the talk. On a night when the latter took a whopping 31 field goal attempts and missed 20 even though George deserved to be the Thunder’s primary option, he showed how and why he was first among equals. Fittingly, he provided the drama as well. He walked the ball up instead of calling a timeout after an ill-advised drive by his arch rival early in the shot clock. And then, with George watching his every move, he waited for the right time to strike.

To comprehend how confident Lillard was in his stroke, one need only see his countenance in the aftermath. He didn’t celebrate immediately. He nonchalantly turned and waved the Thunder bench goodbye, and, when his teammates mobbed him, he saw fit to look beyond the mass of bodies and into the television camera with a blank look. Nope, it wasn’t “a bad, bad shot.” And, yup, he’s a bad, bad man.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Lifetrack Medical Systems secures $5.2 million in Series A funding

Lifetrack Medical Systems, a healthtech startup focusing on improving affordable access to medical imaging services in emerging markets, has raised $5.2 million to scale its international growth and build on its award-winning LifeSys™ medical imaging platform.

The LifeSys™ platform enables rapid transmission, aggregation, and access of medical images from multiple sites, even in remote rural areas, using off-the-shelf consumer hardware and consumer DSL or 4G. Traditional radiology software (RIS/PACS) requires expensive server hardware, workstations, and high-speed bandwidth, constraining access to diagnostic imaging in less developed countries.

The limitations of legacy medical imaging software are well-known to Lifetrack’s CEO and Founder, Eric Schulze, MD, PhD, a practicing radiologist and member of the American Board of Radiology. In 2003, he co-founded one of the first teleradiology companies in the United States, 24/7 Radiology, which he successfully exited in 2011 to Alliance Imaging. He founded Lifetrack Medical Systems shortly after to completely rethink how radiology software could be architected from the ground up.

“The vision for Lifetrack is to make healthcare software human again by building simple, elegant, powerful, and intuitive software platforms for the entire healthcare ecosystem,” said Eric Schulze. “We started this journey with medical imaging in emerging markets such as the Philippines where needs are greatest, resources are scarcest, and demand for high-quality affordable healthcare is growing because of the rapidly expanding middle class. Our new investors embrace that vision and mission, and we’re excited to move into this next phase with them as our partners.”

UOB Venture Management (UOBVM) led the investment in Lifetrack through its Asia Impact Investment Fund (AIIF). Through the AIIF, UOBVM and its impact advisory partner, Credit Suisse, supports growth companies in Southeast Asia and China that address key social challenges and improve the lives of those in low income communities.

According to Clarissa Loh, Senior Director at UOBVM, “in many developing areas in Asia, access to affordable medical imaging is constrained by the lack of qualified radiologists. Lifetrack’s solution seeks to overcome this challenge, and with our investment through the AIIF, we hope to help bring affordable diagnostic imaging to more people in this region.”

Philips, a global leader in health technology, and existing investor Kickstart Ventures, the leading corporate venture capital firm in the Philippines, also participated in this financing round.

“Philips, as a leading health technology company, is focused on improving people’s health and enhancing care provider productivity across the health continuum from healthy living and prevention to diagnosis, treatment, and home care,” said Diederik Zeven, general manager of health systems at Philips ASEAN Pacific.

“Access to precision diagnoses can be challenging in some parts of the world,” he said. “We are committed to partnering with Lifetrack Medical Systems to improve access to advanced radiology services for patients in regions with a developing health system, such as ASEAN and South Asia, so that patients can receive optimal treatment via their local caregivers, wherever they are.”

The LifeSys™ platform combines features and patented technologies that cater to the medical needs in developing countries, such as an advanced configuration engine and a radiologist guidance system. It is now used in multiple emerging markets in ASEAN, South Asia, and Africa. Its innovative architecture also makes it suitable for customers in developed markets. Over 780,000 patients have had their medical images diagnosed via LifeSys™, and it was recognized for Excellence in Disruptive Technology by the Financial Times and International Finance Corporation at the Transformational Business Awards in London in 2018.

“Our new investors give us the resources to improve our team and technology, and to continue working with some of the fastest-growing and largest enterprise healthcare providers around the world,” according to Carl Nicholas Ng, who was appointed Chief Operating Officer of Lifetrack after leading growth and fundraising over the last two years.

“Our aim is to partner with healthcare systems, both private and public, to make widespread access to diagnostic imaging a reality regardless of where the modality, patient, and doctor are physically located, he said.

Trading goes high-tech and social in the Philippines

The vast majority of advice oriented toward Filipino founders starts after the eureka moment: How do you build your startup idea into a thriving company? But how do you get yourself in the position to take that leap in the first place? After all, pursuing your startup dream is a luxury — you need to have some level of financial security to do so.

Launching a business is a full-time job, and it’s one that costs more than it earns, especially at the start. There needs to be a greater level of discussion on how Filipinos can make investments towards financial freedom — allowing startup founders to save ownership of their company rather than rely on raising venture capital and giving equity away.

So how then can Filipino entrepreneurs earn? One unique solution is trading on platforms like eToro, which was itself founded in 2007 as a startup in Europe and is now the world’s leading social trading platform. The operative word in eToro’s description is social, especially given the history of the Philippines.

In 2008, Universal McCann proclaimed the Philippines as “the social networking capital of the world,” owing to the voracious Filipino embrace of platforms like Facebook and Twitter. Filipino usage rates of social media sites both old and new continue to remain at an all-time high, and points to our cultural affinity for connection. We like socializing. We love social.

eToro combines the often intimidating world of financial-technology with social networking, and in doing so, makes the former much more accessible. The core premise is simple: eToro users can browse key information from fellow investors, including their risk score, portfolio composition, track record, and other key metrics.

If a user likes the investment profile of Popular Investors (PI), selected top performing traders and investors on eToro, he can choose to copy these PIs as part of eToro’s patented CopyTrader feature. Doing so emulates their future moves of that traders’ portfolio: For every investment they make, your portfolio will automatically make the same one in proportionate terms.”

In short, copying traders removes the guesswork of trading and enables even newbie investors to confidently make investments.

The kind of copy trading that eToro empowers should be of particular interest to Filipinos given the current state of our local market. Just a few short years from its perch as one of the fastest growing economies in the world, the local economy in the Philippines has stalled, underperforming vis-a-vis other Asian counterparts. This downtrend presents a very gloomy investment outlook for the Philippines.

eToro can be viewed as a gateway: It not only opens up Filipinos to investment opportunities across the world — the platform has over 1300 stocks, 47 currency pairs, 15 cryptocurrencies, and many other financial instruments — but also makes it easy to begin doing so. The company has already held two widely-attended local events, bringing together local investors interested in joining the more than 10 million users already on the platform.

Beyond the local programming, Filipinos can turn to the very active eToro online community, which has all the dedicated features you would expect of a social platform. You can share information with fellow traders, discuss strategies with people all over the world, and comment — leveraging the collective wisdom of the crowd to make more informed investment decisions.

eToro is already turning heads in the region. 80 percent of new users from Southeast Asia began their eToro journey by investing into cryptocurrencies, before quickly expanding into other more traditional financial instruments to create a more diversified portfolio. The company’s leadership in the region is hoping it can make the same impact in the Philippines, converting more Filipinos into smart global traders.

The advent of eToro in the Philippines is a boon for the startup and tech ecosystem as a whole. As more Filipinos generate passive income from copy trading, they can gain the financial flexibility or freedom to pursue even more high value investment activities, such as building the kind of company that one day other Filipinos might invest in.

______________________

Gracy Fernandez is the CEO and founder of Graventure, the first web and app-based car rental platform in the Philippines.

MWSS fines Manila Water P1.134 billion

By Victor V. Saulon
Sub-Editor

THE Metropolitan Waterworks and Sewerage System (MWSS) has penalized Manila Water Company, Inc. with a P1.134-billion fine — consisting of a P534.05-million penalty and a P600-million fund for the development of a new water supply source — in connection with the shortage that hit much of its Metro Manila concession area last month, the regulator said in a statement on Wednesday.

MWSS Administrator Reynaldo V. Velasco said by phone that the fine is to be imposed on the Ayala-led water concessionaire for Metro Manila’s east zone, and the amount will be refunded to consumers. “Ibabawas ‘yan effective June,” he said, referring to a deduction to consumers’ monthly water bill.

Manila Water’s share price plunged 3.4% to end at P22.70 apiece on Wednesday, making it one of the session’s 20 biggest losers, according to Philippine Stock Exchange data.

The penalty was announced by MWSS Chairman Franklin J. Demonteverde and Mr. Velasco after the unanimous approval of the recommendation by the agency’s regulatory office, which invoked Article 10.4 of the concession agreement with Manila Water to come up with the appropriate penalty.

MWSS Chief Regulator Patrick Lester N. Ty did not take telephone calls on Wednesday, nor did he respond to queries via mobile phone message.

A resolution on March 26 unanimously adopted by the MWSS board directed the MWSS regulatory office to study the appropriate penalties to be imposed on Manila Water.

Separately, Manila Water President and Chief Executive Officer Ferdinand M. Dela Cruz said the company would abide by the decision of the MWSS board.

“While we are not the root cause for the inadequacy of the raw water supply coming from Angat Dam which we are mandated to treat and distribute, Manila Water, as agent and contractor of water services of MWSS, hold ourselves accountable for our inability to provide our consumers with the usual uninterrupted water service,” he said in a statement.

The penalties are on top of Manila Water’s self-imposed penalty that provided financial relief to its customers affected by the water shortage. The company placed this amount to hover just below P500 million, although the final figure will not be ready before May.

“The water shortage was an eye-opener, and sad to say, the new MWSS Board inherited this lingering problem having assumed office only in February 2017,” Mr. Velasco said in a statement.

“We are on a catch up mode and it’s only this administration under President Rodrigo Duterte that we have seriously put on track a realistic and doable water security road map to ensure adequate water supply.”

The agency said the water crisis that proved costly to the concessionaire “highlighted the lack of strategic preparedness notably on the realistic allocation of water supply to Manila Water, the development of new water supply sources and the much improvement of the Angat-Ipo-La Mesa tunnel and conveyance system.”

Mr. Dela Cruz said the company’s inability to provide its usual 24/7 water supply to some of its consumers was because the allocated water supply from Angat Dam is no longer sufficient for the total demand of east zone consumers.

DEMAND OUTPACING SUPPLY
He said the allocation had been unchanged at 1,600 million liters per day (MLD) since the concession started in 1997 when the customer base was only 3 million people. Company officials previously placed the current requirement at 1,750 MLD, resulting in a deficit of 150 MLD.

“Today, Manila Water serves a population of almost 7 million people whose per capita consumption has significantly increased through over two decades of economic progress in Metro Manila,” he said, adding that the company could not source more from its system losses.

Mr. Dela Cruz was referring to the water lost via transmission, which the company has been able to bring down to 12% from a high of 63% when it took over.

“Manila Water has strongly advocated for many years for the development of new water sources beyond Angat Dam, both to ensure sufficiency of water supply as well as resiliency in case of any calamity around the Angat Dam system. However, the development of new water sources is, under the Concession Agreement, ultimately the responsibility of MWSS,” he said.

The additional penalty of P600 million has also been imposed on Manila Water to be allocated in the funding of a new water source. MWSS did not disclose details of the specific project that will receive the funds.

Mr. Dela Cruz said the company’s recovery efforts had been focused on addressing the needs of customers in elevated and farthest areas of the concession “who are still inconvenienced due to the water supply shortage.”

He said as of April 23, Manila Water had made water available for at least 8 hours, at least at the ground floor level, to 99% of its customer base.

“We have narrowed the gap of our supply deficit which has been reduced to 57 million liters per day from a high of 150 million liters per day through various supply augmentation efforts,” he said.

“We reaffirm our commitment to work closely with MWSS to address the remaining water supply deficit. We continue to seek understanding from our consumers as we fine-tune our operations to spread the still limited water supply across our customer base,” he added.

Article 10.4 of the concession agreement with Manila Water states that its failure to meet any service obligation, which continues for more than 60 days, or 15 days in cases where the failure could adversely affect public health or welfare, after written notice by the MWSS regulatory office constitutes a basis to assess financial penalties against the concessionaire.

The amount of penalties is equivalent to 25% of the costs that, in the reasonable opinion of the regulatory office, the concessionaire will incur in order to meet the service obligation in question.

If the concessionaire fails to meet the service obligation within 180 days, the amount shall be equal to 50% of such costs.

Payment to the regulatory office is due within 30 days after the concessionaire’s receipt of a demand.

Penalties are not regarded as an expenditure.

Hence, they are to be rebated to customers affected by the concessionaire’s failure to meet service obligations in a manner deemed appropriate by the office.

Ayala Land plans to raise P25-26B in country’s first REIT offer

By Arra B. Francia
Senior Reporter

AYALA LAND, Inc. (ALI) is preparing what could turn out to be the country’s first real estate investment trust (REIT) offering, where it plans to raise about P25-26 billion.

“We filed with the SEC (Securities and Exchange Commission) an Ayala Land REIT; we’re still thinking what the name should be. The intent is to list based on the current regulations which is a minimum public ownership of 67%,” ALI Commercial Business Group Head Jose Emmanuel H. Jalandoni said in a media briefing after the company’s annual shareholders’ meeting in Makati Wednesday.

Mr. Jalandoni said the company has filed for the name change of an existing company, One dela Rosa Development, Inc., into Ayala Land REIT Inc., which will now serve as the vehicle for the REIT listing. ALI has also filed amendments to its articles of incorporation to reflect its intention to file for REITs.

The SEC Office of the Commission Secretary said that it received the company’s application for ALI’s amendments to articles of incorporation on Feb. 15, while the change-in-name notice was submitted on March 28.

The listed property developer will have to file a registration statement for the REIT once it gets clearance from the SEC for the said amendments.

After the SEC, it will then have to get clearance from the Philippine Stock Exchange.

“We feel like it’s a very good vehicle for us. We’ll be able to recycle some capital, but we’re also looking at it as a new business model for us to be able to grow this REIT into another leg for the organization,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in the same briefing.

The REIT will be anchored on ALI’s office towers located in the Makati Central Business District.

Mr. Jalandoni said they can also use the firm to acquire third-party assets.

“It doesn’t mean that the only assets that we will put in this vehicle are the Ayala Land assets. We could actually explore third-party assets as well to be used into this REIT vehicle,” Mr. Jalandoni said.

The company has engaged the Bank of the Philippine Islands as the transaction’s underwriter.

‘LET’S JUST GO AHEAD AND DO IT’
Should the listing push through, this will be the first REIT vehicle in the country 10 years after Republic Act No. 9856, otherwise known as The Real Estate Investment Trust (REIT) Act of 2009, was enacted.

The SEC approved the implementing rules and regulations for the REIT Law back in 2010, which states that a REIT must have a minimum public ownership of 40% on its initial year of listing. This must be raised to 67% on the second year.

Market players previously raised concerns about the high level of public ownership and taxation issues required for REITs.

The SEC has since favored a lower public float of 33%, while the 12% tax on transfer of real properties has been removed under RA 10963, or the Tax Reform for Acceleration and Inclusion Act that took effect in January last year.

However, the SEC has yet to come out with the revised guidelines as the Department of Finance wanted assurance that the funds raised through REITs will not be spent outside the country.

“If they don’t revise, we’re fine because we’re ready to accept. If they do revise we’re also fine. As a company, we said let’s just go ahead and do it,” Mr. Jalandoni said when asked whether they will still push through should the SEC release new guidelines.

“The primary reason is we just want to move forward and test the framework. It’s good for the investing public to have these options.”

Shares in ALI jumped 2.13% or P1 to close P48 each at the stock exchange on Wednesday.

Fitch Ratings cuts PHL growth forecast on budget delay

FITCH RATINGS on Wednesday joined another credit rater and various multilateral organizations in cutting Philippine economic growth projections, due largely to a delayed national budget that is expected to crimp state spending.

In its APAC Sovereign Credit Overview 2Q 2019 report, Fitch Ratings — which in December affirmed the Philippines credit rating at “BBB,” a notch above minimum investment grade, with a “stable” outlook — slashed its economic growth forecast for the Philippines to 6.2% for this year from the 6.6% projection it gave in December “as it expects the recent budget delay and external factors to weigh on growth.”

Fitch’s latest projection compares to similar downward revisions adopted by other outfits since the year began: S&P Global Ratings’ 6.3%; the World Bank’s and the Asian Development Bank’s 6.4%, as well as the 6.5% given by the International Monetary Fund, as well as by the UN Department of Economic and Social Affairs, the UN Conference on Trade and Development and the five UN regional commissions including the United Nations Economic and Social Commission for Asia and the Pacific.

GDP growth slowed to 6.2% last year from 6.7% in 2017 and 6.9% in 2016.

The inter-agency Development Budget Coordination Committee in mid-March slashed its 2019 GDP growth assumption to 6-7% from 7-8% originally as the government operated on a reenacted budget, and some state economic managers have said the government will be hard-pressed to catch up with the state spending program this year.

The Finance department reported on April 21 that delayed enactment of the 2019 national budget — cut to P3.662 trillion after President Rodrigo R. Duterte vetoed P95.3 billion in appropriations when he finally signed it into law on April 15 — resulted in “P1.01 bln [billion] daily underspending for primary expenditures (non-interest payments)” and made state disbursements miss the program by 11% at P777.99 billion in the first quarter, although they edged up a percent from a year ago.

Fitch Ratings, which sees GDP growth picking up to 6.3% next year, expects weak exports amid US-China trade tensions and muted remittance growth to “also exert some downward pressure on growth.”

Beijing seen recalibrating Belt and Road initiative

BEIJING — China is expected to promote a recalibrated version of its Belt and Road initiative at a summit of heads of state this week in Beijing, seeking to allay criticism that its flagship infrastructure policy fuels indebtedness and lacks transparency.

The policy championed by Chinese President Xi Jinping has become mired in controversy, with some partner nations bemoaning the high cost of projects.

Western governments have tended to view it as a means to spread Chinese influence abroad, saddling poor countries with unsustainable debt.

While most of the initiative’s projects are ongoing, some have been caught up by changes in government in countries like Malaysia and the Maldives.

Projects that have been shelved for financial reasons include a power plant in Pakistan and an airport in Sierra Leone, and Beijing has in recent months had to rebuff critics by saying that not one country has been burdened with so-called “debt traps.”

Mr. Xi launched the Belt and Road initiative in 2013, and according to data from Refinitiv, the total value of projects in the scheme is at $3.67 trillion, spanning countries in Asia, Europe, Africa, Oceania, and South America.

A draft communique seen by Reuters said that 37 world leaders attending the April 25-27 summit will agree to project financing that respects global debt goals and promotes green growth.

Visiting leaders will be headlined by Russia’s Vladimir Putin, as well as Prime Minister Imran Khan of Pakistan, a close China ally and among the biggest recipients of Belt and Road investment, and Prime Minister Giuseppe Conte of Italy, which recently became the first G7 country to sign on to the initiative.

The United States, which has not joined the Belt and Road, is expected to send only a lower-level delegation, and nobody from Washington.

Some Belt and Road projects “are going through a period of rationalization and evaluation,” said Li Lifan, deputy director general of the Center for Belt and Road Initiative Studies at the government-backed Shanghai Academy of Social Sciences.

The summit “will be a time for reflection and to talk about the hopes for the future,” he told Reuters.

RHETORIC SHIFT
Industry insiders and diplomats say that there has been a shift in the way Beijing has been pushing Belt and Road overseas since the first such summit two years ago.

“The political part is handled by the foreign ministry now, not the National Development and Reform Commission (NDRC),” said a senior Western diplomat in China, referring to the country’s state planner which drafted the initiative’s official outline in 2015. That shift occurred last year, he said.

Other analysts said there was a noticeable change in China’s overseas efforts to market the policy in the second half of 2018.

In an unusual move, at least 10 of China’s ambassadors and diplomats in countries such as Mexico and Kenya published letters in local media outlets to defend the initiative.

Wu Ken, China’s new ambassador in Germany, acknowledged in his first speech on the job that there were “deep doubts” about Belt and Road.

“I hope relevant people can overcome the ‘allergies’ they have towards the Belt and Road as soon as possible so China and Germany can cooperate to jointly tap the benefits from it,” he said earlier this month.

German Economy Minister Peter Altmaier, a confidant of Chancellor Angela Merkel, will attend the summit.

William Klein, minister counsellor for political affairs at the US embassy in Beijing, told a forum earlier this month that the United States continued to have concerns about the Belt and Road.

“These concerns, for example, are opaque financing practices, poor governance and a failure to adhere to internationally accepted norms and standards.”

Andrew Davenport, chief operating officer at Washington-based consultancy RWR Advisory, which has been tracking Belt and Road investment, said China has become more reactive in its positioning of the initiative since the last forum.

“It’s relatively clear that the Belt and Road narrative being put forward by Beijing over the past several months is designed to counter the criticism and push back,” he said.

SUBDUED
While the number of foreign leaders due at the summit is up from 29 last time, the run-up to the event has been subdued compared with the 2017 meeting.

Two years ago, the weeks before the summit’s opening day were marked by a series of music and explanatory videos published by state media to advertise the Belt and Road initiative while the government announced the dates publicly roughly a month before.

There has been no such media blitz this year besides a handful of documentaries and advertisements, and Beijing only confirmed the dates last Friday, less than a week before the opening.

In events held to talk about Belt and Road before the summit, Chinese officials stressed that the initiative remained a “win-win” and an attractive opportunity for countries willing to become partners.

On Monday, NDRC official Xiao Weiming told a media briefing that Chinese companies had invested $90 billion in countries benefiting from Belt and Road and handed out between $200 billion-300 billion worth of loans between 2013 and 2018.

“The Belt and Road initiative is an open and inclusive idea,” he said. “As long as any country is willing to work with China, we will all have gardens along the Belt and Road.” — Reuters

SMIC eyes bonds, loans to refinance debt by Q3

By Arra B. Francia, Senior Reporter

SM Investments Corp. (SMIC) is looking at conducting a fundraising activity towards the third quarter of the year to refinance maturing loans.

The Sy-led conglomerate said it is mulling the issuance of bonds or securing loans, depending on how the company’s operations will fare in the coming months.

“We have a bond maturing in October, almost $500 million. (So we will raise) for refinancing,” SMIC Senior Vice-President Marcelo C. Fernando, Jr. told reporters after the company’s annual shareholders’ meeting at SMX Convention Center in Pasay City Wednesday.

“A small portion of the maturity will be refinanced, maybe less than half.”

Mr. Fernando said SMIC still has P30 billion that can be issued out of its P50-billion debt securities program. However, the company may fail to exhaust this as the registration will mature in November.

SMIC has allocated P98 billion for its capital expenditures this year, bulk of which will go to its property unit, SM Prime Holdings, Inc., at P80 billion.

SM Prime will build four new malls in the country this year, namely SM Center Dagupan, SM City Olongapo Central, SM City Butuan, and SM Mindpro Citimall. It has also committed to build its eighth mall in China in Yangzhou, while expanding SM Xiamen.

Its residential group has plans to launch 19,000 to 25,000 units located both in Metro Manila and in the provinces this year.

Meanwhile, its banking business composed of BDO Unibank, Inc. and China Banking Corp., cornered P9-12 billion of this year’s capex. This will be used for branch expansions and IT enhancements.

For SM Retail, Inc., expansion for new stores and renovation of existing stores are seen to cost P5 billion in 2019.

“Our priorities in 2019 are no different from the past years and we will continue to challenge ourselves so we can be assured of continued success. Overall, we ended the year with a strong balance sheet and we are confident of our growth prospects for the business,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a speech during the company’s annual shareholders’ meeting.

SMIC’s net income grew by 13% to P37.1 billion in 2018, following a 13% uptick in consolidated revenues to P449.8 billion.

Asked for an outlook on the company’s business this year, SMIC Senior Vice-President for Finance and Corporate Information Officer Franklin C. Gomez said he is cautiously optimistic for the year.

“Barring any significant calamities, we’re cautiously optimistic because the country is growing strong. Our business is very much linked to the country’s gross domestic product cause it covers consumer, property, banking,” Mr. Gomez told reporters.

Shares in SMIC soared 2.15% or P20 to close at P950 each at the stock exchange on Wednesday.

Eton Properties net income surges 38% in 2018

ETON Properties Philippines, Inc. (EPPI) reported a 38% increase in its earnings backed by solid real estate sales and its robust leasing business.

In a statement on Wednesday, the real estate arm of LT Group, Inc. said its net income after tax reached P479 million in 2018 from P348 million in the year prior.

This was supported by a 42% growth in gross revenue to P3.3 billion last year from P2.3 billion in 2017. Real estate revenues soared 102% to P1.7 billion, fueled by sales of its residential projects and higher prices of its ready-for-occupancy units. Among these projects are 8 Adriatico in Manila, 68 Roces in Quezon City, The Manors at North Belton Communities in Caloocan City, and West Wing Residences at Eton City in Sta. Rosa, Laguna.

Rental income increased by 8% to P1.5 billion as business process outsourcing (BPO) companies renewed their leasing agreements at higher rental rates. Income from serviced apartments and property management services also boosted revenues.

“Evidently, the global companies that have made our offices the site of their Philippine operations have seen how the strategic location of Eton Properties’ developments, combined with the well-thought-out facilities in each of these buildings, have contributed to their operational productivity,” EPPI President Lucio K. Tan, Jr. said in a statement.

The company’s consolidated assets stood at P31.4 billion, which was 6% higher than the P29.7 billion recorded in 2017.

Mr. Tan expects EPPI to keep “an optimal portfolio mix that balances recurring income and real estate sales.”

Last year, the property company completed the construction of Eton Square Ortigas in San Juan City. It also began work on Cyberpod Five in Eton Centris located in Quezon City, Eton WestEnd Square in Makati City, and Eton City Square located in Sta. Rosa, Laguna.

EPPI said it is planning to develop new projects in its mixed-use communities in Sta. Rosa, Laguna, Makati City and Quezon City. — Vincent Mariel P. Galang

LHIC expands Kabayan Hotel as it hopes to attract more guests

By Vincent Mariel P. Galang, Reporter

LEGEND Hotel International Corp. (LHIC) is targeting to widen its market for the Kabayan Hotel brand, with the expansion of its hotel in Pasay City.

Located along EDSA, Kabayan Hotel mainly caters to overseas Filipino workers and travelers from the provinces.

“Right now it has about 200-plus rooms. In EDSA, we are expanding it with a 10-storey hotel, so that’s another 300 rooms, and we expect that to open in January of 2020,” Celine Marie L. King, chief operating officer of LHIC, told reporters on Tuesday.

She noted the current two buildings of the hotel have around 280 rooms and have an average occupancy of 84%. With the addition of another building, she said the company hopes to attract more guests.

“The market is growing. There are a lot of competitors especially in the Bay Area because that’s where we are, but I think because we are truly Filipino they can associate that it’s Kabayan, it’s local. We will continue to grow that market. We know them, we understand them and their needs,” Ms. King said.

Kabayan Hotel Pasay is near the so-called Bay Area, where several hotels are located such as Hotel 101 Manila and Conrad Manila.

With the addition of the new building, the company is also looking into hiring 30 to 40 employees.

However, LHIC is not bringing the Kabayan Hotel brand to other areas for now, as it is focused on expanding its hotel in Puerto Princesa — The Legend Palawan (TLP).

“We’re just fixated in expanding the Legend Hotel Palawan, but yes we have talked to a lot of people who would want the Kabayan brand even overseas… but because of our love for Palawan, we would want to invest there first,” Ms. King said.

The company recently finished renovating about 90 rooms of TLP, and is considering to adding more rooms, depending on this year’s demand.

LHIC is a Filipino company owned by Wyden King. Aside from Kabayan Hotel and TLP, the company also owns The Legend Villas in Mandaluyong City, The Mabuhay Manor in Pasay City, Legendary Tours which offers travel packages in Palawan, Pinoy Pamilya Hotel in Pasay City, and My Place Residence Hall in Loyola Heights, Quezon City.

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