Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10592

Megaworld profit up 16%

MEGAWORLD Corp. grew its attributable profit by 16% in the first quarter of 2019, driven by the strong performance of its residential, leasing, and hotel businesses.

In a statement issued Wednesday, the property arm of tycoon Andrew L. Tan said net income attributable to the parent rose to P3.8 billion, versus P3.3 billion in the same period last year.

Consolidated revenues were also up 15% to P14.9 billion. Of this, about 64% came from the residential business while 26% were from the leasing segment. Hotel operations accounted for four percent, while the balance came from non-core businesses.

“It is always encouraging to see all of our core businesses exhibiting positive growth during the first quarter as this sets our pace for the rest of the year. We will be working towards maintaining the growth momentum until year-end,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said in a statement.

Residential projects continued to see high demand as revenues gained 11% to P9.5 billion. The business segment realized about P48 billion in reservation sales during the quarter, after launching around P24 billion worth of new inventory.

The rental business also saw a 16% uptick in revenues to P3.9 billion, thanks to leasing revenues from office spaces and lifestyle malls. Megaworld targets to complete over 230,000 square meters (sq.m.) of leasable spaces from office and mall spaces to bring the total to 2.14 million sq.m. by the end of the year.

Meanwhile, revenues from the hotel segment advanced 56% to P574 million, after the opening of Savoy Hotel Manila in Pasay City and Twin Lakes Hotel near Tagaytay last year.

This year, Megaworld is set to add more than 1,000 hotel rooms with the opening of Belmont Hotel Boracay, Hotel Lucky Chinatown, and Savoy Hotel Mactan Newtown.

“We are confident that stronger numbers will be achievable given our pipeline of projects this year,” Mr. Tan said.

Megaworld earlier said it will be spending P65 billion in capital expenditures this year, 80% of which will be for property development across its 23 townships. The remaining 20% will be used for land acquisitions and investment properties.

The capital spending will support Megaworld’s plan to launch 28 new residential towers seen to generate P90 billion in sales. It will also unveil five new office towers covering 116,000 sq.m. in gross leasable area (GLA). The commercial segment will add five malls this year, spanning about 9,000 sq.m. in GLA.

These new projects will be located inside its existing townships. Megaworld had a total of 24 masterplanned estates across the country by end-March.

Megaworld is part of holding firm Alliance Global Group, Inc., which also has core interests in liquor, gaming, and quick-service restaurants.

Shares in Megaworld fell 1.29% or seven centavos to close at P5.37 each on Wednesday. — Arra B. Francia

Smashburger drags Jollibee income lower in Q1

By Arra B. Francia, Senior Reporter

EARNINGS of homegrown food giant Jollibee Foods Corp. (JFC) dropped by 14.7% in the first quarter of 2019, pulled down by losses of recently acquired burger chain Smashburger and weak consumer sentiment.

JFC said in a statement that net income attributable to the parent fell to P1.54 billion, against P1.8 billion in the same period a year ago, after the company consolidated Smashburger into its financial statements starting April 2018.

The listed quick-service restaurant operator acquired 85% of the Denver-based shop’s equity shares last year. Without Smashburger, JFC said operating income would have grown 9.1% for the quarter.

Meanwhile, systemwide retail sales firmed up 18.1% to P54.28 billion, resulting to a 14.1% increase in revenues to P40.35 billion.

“Our financial performance in 2019 by quarter will be mixed. Our sales and profit performance in the first and second quarters will not be as strong in previous years…Our profit is also being affected by the performance of Smashburger in the United States,” JFC Chief Financial Officer Ysmael V. Baysa said in a statement.

Net income from the Philippines, which contributes 73% of the company’s systemwide sales worldwide, grew 11.1% year on year. This came after a 9.5% increase in sales, thanks to newly opened stores that accounted for 7.8% of the growth.

Same-store sales growth (SSSG) in the country stood at 1.7%, while worldwide SSSG was at 1.9%. Mr. Baysa noted that SSSG in the first half will “not be as strong” against the comparable period last year.

“We look forward to sales and profit recovery in the third and fourth quarters as consumers in the Philippines slowly regain their purchasing power after being adversely affected by high inflation in 2018,” Mr. Baysa said.

Mr. Baysa added that he expects the company to sustain its historical sales and profit growth rates in the medium term, while transforming Smashburger into a “much stronger business.”

JFC has committed to spend P17.2 billion in capital expenditures this year, as it plans to open at least 500 new stores. Half of these will be located in the Philippines with the other half to be developed overseas. Vietnam will lead JFC’s international expansion with 120 new stores in the pipeline, followed by North America which will see the opening of 40 new stores.

It also plans to open the first Jollibee store in Spain, the first Tim Ho Wan franchise store in Shanghai, the first Tortas Frontera store in Chicago, and the first Panda Express franchise store in Manila within the year.

The company ended the first quarter with 4,543 stores carrying different brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, and Pho24.

Villar’s VLL nets P2.85 billion in 1st quarter

VILLAR-LED Vista Land and Lifescapes, Inc. (VLL) posted an attributable profit of P2.85 billion in the first quarter of 2019, 12% higher year on year.

In a regulatory filing, the listed property developer recorded a 14% jump in revenues to P11.44 billion, driven by higher sales from its affordable housing segment, as well as improved rental income from its operating malls.

“We are pleased to have been able to achieve solid growth over the past years and it should be the same this year as we take advantage of the synergies between our residential and leasing businesses,” VLL Chairman Manuel B. Villar, Jr. said in a statement.

Real estate sales alone went up by 12% to P8.79 billion, as revenues from its Camella brand surged 33% to P3.16 billion. The company noted that it saw a higher number of sold homes completed or under construction in the Mega Manila area during the period.

VLL’s affordable housing brand outside Mega Manila called Communities Philippines also posted a 28% increase to P4.58 billion, due to more number of houses completed or under construction at the time.

“Demand for our housing products has been stable as our sales from Overseas Filipinos remained solid at over 50% of our total sales and we are also seeing an increase in domestic demand,” VLL President and Chief Executive Officer Manuel Paolo A. Villar said in a statement.

The positive performance of the affordable housing segment was dampened by the 54% drop in revenues from VLL’s projects catered toward the middle class, such as Vista Residences.

Its other brands, Crown Asia and Brittany targeting the middle-income to high-end housing segment, also reported lower revenues due to fewer projects.

Meanwhile, rental income improved 18% to P1.8 billion for the quarter, after the company raised rental rates in its existing malls and added more leasable spaces. VLL last year completed its target to have 1.3 million square meters in gross floor area for its commercial business.

VLL said it unveiled about P10.8 billion worth of projects in the first quarter, out of its target to launch up to P60 billion for the entire year.

The company is spending P40 billion in capital expenditures this year to support its expansion plans.

Shares in VLL were unchanged at P7.12 each on Wednesday. —Arra B. Francia

Holcim PHL shows flat profit growth for January-March

HOLCIM Philippines, Inc. (HPI) booked flat profit growth in the first quarter of 2019 due to lower sales and higher interest expenses.

In a regulatory filing, the listed cement manufacturer said net income attributable to the parent stood at P703.63 million from January to March, slightly higher than the P699.65 million it posted in the same period a year ago.

This followed a 5.82% decline in net sales to P8.10 billion. The company was affected by the shutdown of its Mabini, Batangas plant last March on the order of the regional Environmental Management Bureau. This reduced its volumes by 102,000 tons for the month.

HPI also noted that it incurred higher interest expenses for the quarter due to its short-term loans, further weighing down its bottom line.

At the same time, the company was able to raise its operating EBITDA, or earnings before interest, taxation, depreciation, and amortization, by 30.7% to P1.7 billion. HPI said this was due to the lower cost of goods sold complemented by a decrease in operating expenses.

“Our focus on raising profitability through tighter cost management, improved operational efficiency and commercial innovation continues to pay off as seen in our business results, and we are determined to build on these further,” HPI President and Chief Executive Officer John Stull said in a statement.

“We will continue to execute with precision to deliver on shareholders’ expectations and become a stronger partner in the country’s progress.”

HPI is currently being acquired by diversified conglomerate San Miguel Corp. for $2.15 billion, as the cement manufacturer’s parent Lafarge Holcim Group is unwinding its investments in Southeast Asia to focus on other markets. The transaction is currently pending regulatory approval. — Arra B. Francia

Filinvest Land income rises 24%

FILINVEST Land, Inc. (FLI) booked a 24% increase in earnings in the January to March period on the back of strong rental and real estate revenues.

In a statement issued Wednesday, the Gotianun-led property developer said net income improved to P1.84 billion in the first quarter of 2019, versus P1.49 billion in the same period last year. Gross revenues also rose 15% to P7.2 billion.

Rental revenue alone jumped 42% to P1.72 billion, thanks to the completion of six office buildings last year which added 118,00 square meters to the company’s gross leasable area (GLA).

FLI has also completed another office building called Axis Two in Northgate Cyberzone in Alabang, covering an additional 39,000 sq.m. This brought its total GLA to 510,000 sq.m. by end-March, about a third of its 1.6-million sq.m. target by 2023.

Meanwhile, real estate sales revenue hit P5.11 billion, 10% higher year on year. The company benefited from its focus on affordable housing brand Futura and middle income brand Aspire.

The company last week broke ground on the 288-hectare New Clark City, a project in partnership with the Bases Conversion and Development Authority. The property will house a 64-hectare innovation and logistics park, as part of FLI’s goal to increase its recurring income portfolio. — Arra B. Francia

GMA to launch DTT device by 2nd half

By Denise A. Valdez, Reporter

GMA NETWORK, Inc. said it will be launching a digital terrestrial television (DTT) device this year, which will allow users to stream its free-to-air shows through mobile phones.

During the company’s annual stockholders’ meeting Wednesday, GMA Chairman and Chief Executive Officer Felipe L. Gozon said the company is investing “over a billion pesos” to complete the second phase of its digitization project, part of which will be the launch of its DTT device “MyGMA Go.”

“Our digital device, which will have features that our competitors do not have, will be finally launched some time in the second half of this year,” he said.

Mr. Gozon told reporters the product will be like a dongle that could be attached to Android phones to enable the device to receive signals to watch GMA shows and other free-to-air channels.

The devices will be sold through GMA’s digital transformation partner PLDT, Inc. and its wireless subsidiary Smart Communications, Inc., with an initial target of selling one million out of the total of four million units nationwide.

“[W]ith the other features, I’m hoping madaling ibenta dahil mas mura eh. Pero sa smartphone lang muna ’yun [I’m hoping it will be easier to sell because it is cheaper. But it’s for smartphones for now],” he said, noting the digital device will cost around P500 each.

The company started transmitting digital TV signal using its permanent frequency UHF Channel 15 yesterday.

Mr. Gozon noted they decided not to launch a similar product to rival ABS-CBN Corp.’s TVplus box, as they wanted something mobile and allows interaction.

For 2019, the GMA chairman said the company is targeting to grow its revenues by 12%.

“I am confident that this year will bring better financial results because of election-related revenues as well as those from our recurring advertising sales. We target to increase our 2019 revenues by 12%,” Mr. Gozon said.

In a regulatory filing, GMA said its attributable net income surged 70.7% to P716.08 million for the January to March period, driven by an increase in revenues from advertising placements.

Consolidated revenues grew 14% to P3.8 billion from P3.34 billion in the same period last year, coming mostly from political advertisements that contributed more than P300 million from January to March.

Excluding the impact of election-related advertisements, GMA said its consolidated sales from recurring revenues still grew 4% during the period.

While advertising revenues increased 16% to P3.5 billion, revenues from subscriptions and others declined 8% to P302.2 million in the three-month period.

Expenses were flat in the first quarter at P2.81 billion from P2.77 billion the previous year.

“Cost-wise, the Company continued to display a conscious effort to manage spending…. Production and other direct costs which made up more than half of total (operating expenses) even contracted by P79 million or 5%, thus cushioning the escalation in general and administrative expenses which grew by P117 million or 10%,” GMA said in a regulatory filing.

Strong sales drive CLI earnings higher

CEBU Landmasters, Inc. (CLI) reported a 23% increase in its net income attributable to parent during the first three months of 2019, on sustained sales of its projects in Cebu.

The listed property developer said attributable net income stood at P599 million in the first quarter, higher than the P486 million recorded a year ago.

Revenues rose by 48% to P1.87 billion during the period from P1.264 billion last year.

“Our positive financial results are motivated by our vision to be the leading and preferred developer in Visayas and Mindanao,” Jose R. Soberano III, chief executive officer of CLI was quoted saying in a statement.

“We have sustained our growth momentum as we continue to be highly effective in the construction and delivery of our projects. It is our commitment to deliver on-time, high quality products to our customers,” he said.

Reservation sales also recorded growth during the period by 29% to P3.877 billion, as it launched new projects, namely One Paragon Place and Citadines Paragon in Davao and Casa Mira Towers in Cagayan de Oro.

Sales were driven by the Garden series, the company’s mid-market brand, accounting for 36% of the total. Meanwhile, economic housing brand Casa Mira accounted for 31% of the total revenues, and the high-end brand Premier Series for 29%.

Based on location, Cebu projects accounted for 58% of the total revenues, while new expansion areas like Bacolod, Dumaguete, Cagayan de Oro, and Davao have started to show notable contributions to revenue by 15%, 12%, 8%, and 6%, respectively.

This year, the company is targeting to reach P12.5 billion in reservation sales, from P9.8 billion in 2018.

“We are on-track to achieve the guidance we provided for the year 2019. We reaffirm our target to grow our consolidated revenue to P8.4 billion, consolidated net income to P2.6 billion and parent net income attributable to P2 billion,” Mr. Soberano said.

As of the first quarter of 2019, Cebu Landmasters has 58 projects, with 27 of which are completed, and 31 still being completed. Within the year, the company is also targeting to launch 26 more projects.

Shares in Cebu Landmasters went up by 4.26% or 0.2 centavos to close at P4.90 each at the stock exchange on Wednesday. — Vincent Mariel P. Galang

Anthology of top food essays launched

WRITING about food is an experience both universal and personal: while everyone around you may eat the same thing, everyone has a different response to it and recall of it. That’s why, most of the time, no two articles about food are ever exactly the same.

That does not stop people from writing about food, and some of this writing has been awarded for its merit.

The Doreen Gamboa Fernandez (DGF) Food Writing Awards were named after esteemed teacher and writer Doreen Gamboa Fernandez, who expanded her reach beyond the classroom and did extensive research on Filipino culture and its expression through food, leaving behind a legacy of food writing respected today as institutions in themselves.

The contest, which selects a handful of excellent essays based on a common theme, have been awarded since 2002, the year of Ms. Fernadez’s death. This year, the theme was “Fowl,” and three winners were announced on May 9 in Pasig City. Elmer Nochesda won this year with an essay called “A Taxonmy Of Lutong Itik (cooked duck).” Christian Renz M. Torres bagged second place for “Curiosity Cured The Duck,” while “Feeling Nostalgic with Mama Pe’s Inubadang Manok Bisaya (Visayan chicken stew)” by J. Roy Paniza ranked third place.

The May 9 awards also served to launch the book Sangkap: Basic Philippine Ingredients, the second anthology from the DGF Awards, covering years 2013-2017. The book includes essays by winners from years past on the topics “Rice,” “Coconut,” “Herbs,” “Vinegar,” and “Bagoong (fermented fish paste),” with a few recipes and essays from other esteemed writers, giving a taste of the literary.

Michaela “Micky” Fenix, President of the Food Writers Association of the Philippines which compiled the winning entries of the book and now holds stewardship of the awards, says that she wasn’t that close to the late Ms. Fernandez. “I was just starting then,” she said when asked to recall her experiences with Ms. Fernandez. But she did learn a lot from her, saying, “You just have to read her, then you know.”

The awards then, are a way to protect the legacy of Ms. Fernandez, rooted in both creativity and discipline. Asked if there are any traits needed in a writer to be of Ms. Fernadez’s caliber, Ms. Fenix said, “Curiosity.”

“Curiosity is vital. You can’t simply know everything about everything. Especially with food. If you belong only to Manila, would you know about Ilonggo food?”

To give an award to in a field is to give it prestige and respect. In this case, food writing becomes almost as noble as the prospect of farming for food, or preparing it. “You have to talk to the cook, why they cook it that particular way… and then the ingredients that you use.

“Eating is just part of the experience. People think that if you can describe the taste, it’s enough. It’s not enough,” said Ms. Fenix.

Copies of Sangkap can be purchased directly from the Food Writers Association of the Philippines. Call Hannah at Studio 5 via 895-4040. The book costs P400. Delivery is free for addresses near or around Makati, but delivery charges apply to other locations. — Joseph L. Garcia

Lopez Holdings more than doubles Q1 earnings

LOPEZ Holdings Corp. reported a first-quarter net income of P2.291 billion, or more than double its profit attributable to equity holders of the parent firm a year ago of P1.104 billion, with its energy group contributing to its performance during the period.

In a disclosure to the stock exchange, it attributed the quarterly growth primarily to the better financial results of its energy business under associate First Philippine Holdings Corp. (FPH), lower foreign exchange losses, as well as the better earnings of ABS-CBN Corp.

The listed holding firm, which houses the Lopez family investments in major development sectors, reported an unaudited consolidated revenues of P32.77 billion, up 18.9% from P27.565 billion a year ago.

FPH recorded an 87% rise in net income attributable to equity holders of the parent while ABS-CBN posted a 120% rise in net income.

Foreign exchange losses on the FPH group’s consolidated foreign currency-denominated debt dropped to P5 million for the January to March period, from P881 million a year ago. ABS-CBN registered a 22% increase in advertising revenues.

Lopez Holdings owns 49% of FPH and has a 56% economic interest in ABS-CBN as of March 31, 2019.

FPH is the parent company of clean and renewable energy firm First Gen Corp., which in turn controls geothermal energy pioneer Energy Development Corp.

On Wednesday, shares in Lopez Holdings rose 0.23% to close at P4.34 each. — Victor V. Saulon

Craft brewing’s hot new style? Beer made with spicy chili pepper

WHILE craft beer heads might measure a brew in IBUs (International Bitterness Units, which are used to approximately quantify the hop bitterness of beer) what about a beer’s SHUs (Scoville Heat Units, a measurement of the heat of chili peppers)? Beers with heat are hot at the moment as craft brewers experiment with exciting new flavor combinations. Whether they’re made via the addition of hot pepper juice, oils, or whole peppers, ales and lagers brewed with chili peppers are common enough for “Chile Beer” to be a recognized style on BeerAdvocate.com. Ranging in heat on the palate from subtle to fiery, here are seven eclectic examples of Scoville-scoring, great brews.

BALLAST POINT’S HABANERO SCULPIN
San Diego’s Ballast Point is the 17th-largest brewery in the US, based on sales, and its flagship IPA Sculpin is an American craft staple. Named after the scorpion-like sculpin fish, the base beer packs a hop bite that’s no joke. Ballast Point spices up the standard IPA recipe with habaneros, which lends bright citrus notes to start and then a hot finish for which there’s only one remedy: another big gulp.

BARRELED SOULS’S TEOTIHUACAN
Barreled Souls out of Saco, Maine, is one of the country’s most adept brewing teams when it comes to unorthodox adjuncts. Teotihuacan is one of its best stout recipes, made with raw cocoa nibs and oven-roasted habaneros. It clocks in at 12.9% alcohol by volume (ABV). A version that’s aged for more than 11 months in a tequila barrel is particularly excellent, with big chocolate notes, roasty flavors in the periphery, and a finish that’s both floral and hot.

BOGEDAL’S NO. 600
Bogedal is one of the most uniquely rustic breweries in the world. Located on a bucolic Danish farm built circa 1849, the husband-and-wife team operates Scandinavia’s only all-gravity brewery. (Old-fashioned, hand-powered hoists and pulleys are used to transfer beer from vat to vessel, eschewing convenient modern electric pumps that have a tendency to break more delicate organic compounds.) Their No. 600 Anniversary Imperial Stout has it all: cocoa beans from wild trees, licorice, oat flakes, muscovado sugar, and chilis. Decadently chocolatey, it’s lightly bitter and comfortably spicy.

SANTE ADAIRIUS’S JOSE PIMIENTO
On the lighter side of the spectrum, California’s Sante Adairius Rustic Ales takes a stab at crafting spicy beer with its Jose Pimiento — a barrel-aged blonde ale with dried chilis. Pouring a shiny golden hue with a small white head, it offers aromas of lemon, pineapple, and cellar funk. The flavor showcases the chilis, synthesizing into a drink that’s both sour and spicy, with a dry finish.

UPRIGHT’S FATALI FOUR
Any barrel-aged beer from Portland, Oregon’s Upright is guaranteed to be an absolutely stellar drink. For Fatali Four, Upright takes its wheat saison, douses it with Brettanomyces yeast, and throws it into a combination of gin and wine casks. As if this weren’t enough, homegrown fatali chili peppers are added during the final weeks of aging. This results in a terrifically botanical gin bouquet — a dry and lightly acidic palate with an oily spice-forward finish.

VOODOO’S HOTTING UP
Now, this is a beer with some history. Pennsylvania’s Voodoo generally receives universal acclaim for its barrel-aged brews, but this particular offering was admittedly rather divisive — a love for hot sauce being a prerequisite for fandom. The barrels that housed it began life as simple containers for Heaven Hill bourbon. They then stored maple syrup, then Louisiana hot sauce, and finally Hotting Up, an 11.1% ABV imperial stout. After maturing for 18 months in these fourth-use oak barrels, the finished beer is wild: big spicy notes rounded with flavors of chocolate, maple, soy, and vinegar.

WESTBROOK’S MEXICAN CAKE
What began as a beer brewed to celebrate Westbrook of South Carolina’s first year as a brewery is now one of its fan-favorite annual releases. Dubbed Mexican Cake, it’s a big and chewy stout aged on cocoa nibs, vanilla beans, cinnamon sticks, and fresh habanero peppers. Earthy, peppery, pillowy, spicy, sweet: It’s pudding in a glass. For those willing to put in further effort, seek out the barrel-aged variants, which amp up the flavors. — Spike Carter, Bloomberg

foodpanda targeting further expansion in the Philippines

FOOD DELIVERY company Foodpanda Group (stylized as foodpanda) is gearing up for expansion in the Philippines as it celebrates its fifth anniversary in the country.

“We grew drastically over the last five years. It’s primarily, also accounted to how we played around our service, the price points… Over the years, we’ve grown from just a few restaurants, now we have over 2,500 brands on board, reaching multiple cities the biggest is Metro Manila, and we’re growing rapidly in Davao, Cebu, and we’ve expanded to a couple of cities in North and South Luzon, Angeles, Pampanga; Bacoor, Cavite; and San Pedro, Laguna,” Cheena M. Abellon, head of marketing of foodpanda Philippines, told BusinessWorld in an interview.

Launched in the Philippines in 2014, foodpanda is owned by Berlin-based company Delivery Hero SE and is operating in about 50 countries.

Ms. Abellon noted that in the following months, the company will further widen its reach, and is targeting to be in 19 cities in Luzon, the Visayas, and Mindanao — especially in emerging cities — by the end of the year.

The company is already serving Manila, Makati, Taguig, Pasig, Mandaluyong, Quezon City, Marikina, Muntinlupa, San Juan, Pasay, as well as emerging areas such as Cebu City, Lapu-Lapu City, and Davao City.

“The convenience that we offer is something applicable for business districts. I would say majority talaga of everything is coming from Metro Manila, but we cannot disregard the fact na (that) Cebu and Davao are rapidly growing, and with our expansion, we saw a significant growth and the significant potentials in the new cities where we are launching,” she noted.

She added that the company will also be maintaining its purpose of delivering food to people by further improving the features in the platform. From being just a simple food delivery platform, it now has various features that can cater to all kinds of customers.

“We put ourselves at a competitive standpoint wherein kami pa rin ‘yung (we are still the) industry leaders, and with that kind of price point, we’ve managed to acquire new customers, reach out to more people because it became more affordable and not kind of like an elite application,” she said.

During its early days in the country, foodpanda implemented a minimum order value and imposed 10% for delivery fee plus service fees. This were later on replaced by a fixed amount of P59 for delivery in 2016, which is now at P35.

Moreover, in 2018, the company launched its pre-order feature. Early this year, it introduced a pick-up feature for customers who want to skip long lines and just pick up their orders when they pass by restaurants.

“We offer the same solution, but differentiating it is primarily focused on one vertical. I think that is one of our key strengths and leverage against competitors kasi (because) we’re not dividing our attention… We’re focused on getting food to someone,” Ms. Abellon said.

BOOSTING BUSINESSES’ GROWTH
Ms. Abellon said the platform may also serve as an advertising venue for some restaurants, as it introduces them to more potential customers.

“It’s an enabling factor din for restaurants, so on their perspective, on the business level perspective, we are an opportunity for them…like an advertising arm for them in order to tap markets that they cannot reach by being just their branch,” Ms. Abellon said.

In addition to this, restaurants are also able to skip costs for food delivery, like buying motorcycles and salary and benefits for delivery crew.

“They are able to add sales on a branch level through the delivery service that we are doing without having to do an expansion in order to accommodate more seats, and they didn’t have to spend on operational costs buying a bike or paying a rider. They get to skip that part,” the official said. — Vincent Mariel P. Galang

Political ads boost ABS-CBN Q1 bottom line

EARNINGS of ABS-CBN Corp. soared 89% in the first quarter, as revenues got a boost from political ad placements.

The Lopez-led firm posted an attributable net income of P856.35 million in the three-month period ending March, versus P452.54 million in the same period last year.

Consolidated revenues grew 15% to P10.4 billion. Advertising revenues contributing 52% of the total at P5.4 billion, which was 24.4% higher from the same period last year.

In a regulatory filing, ABS-CBN said the growth is brought by both election-related advertisements and regular advertising. “Excluding political placements, regular advertising increased by P633 million or 14.6% higher year-on-year,” it said.

Making up 48% of the company’s total revenues are consumer sales, which grew 6.2% to P4.95 billion, mostly from box-office sales and ABS-CBN TVPlus sales.

The company’s total costs and expenses also went up by 7.6% to P9.44 billion. General and administrative expenses grew by 12.6% to P2.84 billion, which went to content building, information security measures and digital initiatives.

Production costs also expanded 5.7% to P3.26 billion, which was spent on facilities-related expenses and employee-related costs.

The cost of sales and services rose 5.3% to P3.33 billion, due to “the growth of SkyCable’s broadband business which drove bandwidth costs up by P34 million or 2% higher year-on-year.”

ABS-CBN said its capital expenditures and program rights acquisitions totaled P811 million by end-March. — Denise A. Valdez

1...10,59110,59210,593...13,837Page 10,592 of 13,837
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube