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San Miguel 1st half income drops 5%

DIVERSIFIED conglomerate San Miguel Corp. (SMC) recorded a 5% profit decline for the first half of 2019, which was attributed to flat sales and the slow performance of Petron Corp.

In a presentation posted on its website, the listed firm said net income dropped to P26.15 billion, compared to P27.59 billion in the same period a year ago, following 2% growth in net sales to P509.5 billion.

Consolidated operating income was also down by 14% to P57.6 billion, as SMC noted that Petron was “weighed down by prevailing movements in world crude oil prices and weak refining margins.”

The oil refining and marketing company further had to shut down its Bataan refinery for scheduled maintenance and additional repairs after the earthquake last April. With this, Petron’s net income plunged 72% to P2.62 billion for the first semester, after net sales also fell 7% to P254.81 billion.

San Miguel Food and Beverage, Inc.’s (SMFB) performance was also dragged by higher costs. SMFB saw its net income drop by 5% to P14.67 billion, even as net sales grew 10% to P151.11 billion.

The food business alone, through San Miguel Pure Foods, said net income plummeted 85% to P447 million. Net sales were up by 5% to P66.13 billion.

Ginebra San Miguel, Inc. and San Miguel Brewery, Inc. helped offset the weakness of the food unit, as their net income climbed 94% to P980 million and 12% to P13.26 billion, respectively.

Meanwhile, SMC Global Power Holdings, Inc. delivered a 288% jump in earnings to P7.26 billion. Consolidated off-take volume grew by 28% to 14,635 gigawatt-hours, due to new bilateral contracts from the additional power generated by the Masinloc, Limay, and Malita power plants, as well as improved plant capacity from Sual and Ilijan.

For the infrastructure business, income from operations slid by 3% to P6.03 billion, amid flat sales of P12.32 billion. The company noted that vehicular traffic volume improved by 6% across its operating toll roads, including Tarlac Pangasinan La Union Expressway, Metro Manila Skyway, and the South Luzon Expressway, among others.

The packaging group generated P1.7 billion in income from operations, 3% higher year on year, after a 2% uptick in net sales to P17.84 billion.

Shares in SMC dropped 1.69% or P3 to close at P175 each at the stock exchange on Thursday. — Arra B. Francia

Bloomberry earnings hit P2.5B in Q2 on higher revenues from VIPs

SOLAIRE Resorts and Casino’s Grand Ballroom is being converted into a new gaming space. — CATHY ROSE A. GARCIA

BLOOMBERRY Resorts Corp. grew its attributable profit by half in the second quarter, thanks to a rise in gaming revenues from the high roller segment.

In a regulatory filing, the owner and operator of Solaire Resorts and Casino said net income attributable to the parent stood at P2.46 billion during the April to June period, 50% higher than the P1.64 billion in the same period a year ago.

Total revenues also jumped 20% to P11.54 billion.

“In the second quarter of 2019, Bloomberry delivered another solid set of results led by Solaire’s robust performance across all its gaming segments. It has been a great year so far and we will strive to carry this momentum into the next six months,” Bloomberry Chairman and Chief Executive Officer Enrique K. Razon, Jr. said in a statement.

Gross gaming revenues (GGR) surged 19% to P14.62 billion, even as VIP volumes slipped by 5% to P177.05 billion. VIP revenues however went up by 33% to P6.18 billion, following a 3.49% hold rate in the quarter, against 2.49% a year ago.

Electronic gaming machine coin-ins generated P4.36 billion, 26% higher year on year, after volumes hit a record of P65.48 billion for the quarter.

In contrast, mass table revenues went down by 3% to P4.08 billion as hold rates dropped to 32.6% from 38.3% a year ago.

For Jeju Sun Hotel & Casino in South Korea, gaming revenues jumped 157% to P135 million due to competitive casino programs.

Non-gaming revenues for the entire company were up by 20% to P2.01 billion. For Solaire alone, non-gaming revenues rose 22% to P1.98 billion due to higher rental income and hotel and food and beverage revenues.

This came despite lower hotel occupancy at 89.4% for the quarter, against 93.2% in the same quarter in 2018. The company is currently converting its Grand Ballroom into a new gaming space, causing a decline in hotel bookings related to conventions and other pre-booked events.

On the other hand, Jeju Sun’s non-gaming revenues fell by 56% to P24 million as it renovated about 80% of the property’s hotel rooms and its food and beverage outlets. Renovation is scheduled to be completed by the fourth quarter.

Meanwhile, Bloomberry’s first half attributable profit ended at P4.67 billion, 12% lower year on year amid a 12% uptick in revenues to P22.23 billion. The company attributed the slower performance for the semester on lower foreign exchange gains and higher interest expenses from its P73.5-billion syndicated loan.

Bloomberry took out the loan in April 2018 to fund the working capital requirements of its subsidiary Bloomberry Resorts & Hotels, Inc.

Shares in Bloomberry surged 6.25% or 70 centavos to close at P11.90 apiece on Thursday. — Arra B. Francia

GMA says complying with DoLE workplace safety investigation

GMA Network Inc. said that it has been cooperating with the Department of Labor and Employment (DoLE) regarding occupational safety and health (OSH) inspections on the TV giant’s compliance to occupational safety and health standards, after veteran actor Eddie Garcia while shooting a television show.

In a message to BusinessWorld Thursday, GMA said “(T)he Network has been cooperating in the labor investigation and has attended the meetings and submitted all necessary reports as required by DoLE and the Occupational Safety and Health Center.”

On Wednesday, Labor Secretary Silvestre H. Bello III told reporters that DoLE will fine GMA P100,000 per day until the network corrects OSH violations in the workplace. This is the maximum fine an employer can pay under the OSH Law.

Mr. Garcia suffered a neck injury during the shooting of a new television program after a fall while on set. According to Mr. Bello, a safety officer on set would have prevented the accident.

Having no safety officer on set is considered a violation under the OSH Law.

According to the DoLE National Capital Region’s (DOLE-NCR) recommendations issued on July 17, the department inspected the set on June 29 and confirmed that an uneven portion of the cement floor caused Mr. Garcia’s fall.

The network has been required to submit proposed schedules and locations for the television show to facilitate work safety inspections.

GMA said it “will respond to the DoLE when we receive its order and/or a copy of its investigation results.” — Gillian M. Cortez

Why make a dark comedy about suicide

SUICIDE RATES in Japan may have fallen — CNN reported in 2018 that the total number of suicides in the country fell to 21,321 in 2017 compared to a peak of 34,427 — but rookie director Kasumi Nojiri who directed Lying to Mom (2018) doesn’t believe in these numbers, saying that the number of people who committed suicide is probably misreported by the government.

“If you look at the same numbers, the number of younger people committing suicide is on the rise,” Mr. Nojiri told reporters during an interview on Aug. 3 at the Cultural Center of the Philippines where his movie was shown as part of the ongoing Cinemalaya film festival.

The CNN report noted that 250 elementary and high school children took their lives between 2016 and 2017, 5% more than the previous year.

The director’s personal experience with suicide led him to create his first film in 2018, a film which talks about how Japanese society views suicide and a story about family.

The film won the 31st Tokyo International Film Festival’s Japanese Cinema Splash Best Film Award and the 2019 Uncaged Award for Best Feature Film at the New York Asian Film Festival.

“Before the death of my older brother by suicide, I used to think of my family as air — they’re just there,” he said before admitting that there were times that he felt they were a burden. But after his brother’s death, he said he realized that blood ties are impossible to break, and with that acceptance, he felt a huge weight has been lifted from his shoulders.

In much the same way, Lying to Mom, is a story about a family that deals with the suicide of the oldest son and how the family, especially the youngest daughter, deal with his death.

The oldest son is a hikikomori (a recluse) who would not leave his room. When he decides to take his life, his mother, who witnesses this, tries to save him, injuring herself in the process. When she wakes up in the hospital, she has forgotten her son’s suicide and her daughter decides to keep the truth from her mother to spare her the pain.

Mr. Nojiri said that Japan is a very competitive country and people have to follow a strict life plan — high school, university, and find a good company to work for — and anyone who deviates or fails to follow this plan are deemed failures, and that feeling of failure is sometimes what causes people to cut themselves off from society entirely, turning into hikikomori.

If the premise of the movie seems grim, it is, but Mr. Nojiri, who thinks that films are “in the end, for entertainment,” decided to make it into a comedy of errors where the lies snowball until the family can’t keep lying anymore.

“Before my brother was buried, my parents argued about which statue of our pet my brother would like more sitting beside his tombstone — my mother said he liked the cat better, my father said he liked the dog better — and it struck me as funny that they could argue about something like that, but as I thought about it, it was their way of showing my brother that they love him by thinking about what he likes,” Mr. Nojiri said.

The daughter in the film (played by Mai Kiryu), is a beautifully complex character who deals with the death of her brother with resentment, anger, and finally acceptance, in much the same way Mr. Nojiri recounted dealing with his brother’s death.

“I was angry and it took about 10 years to stop lying and accept what happened,” he said before adding that he used to lie about his brother’s cause of death to the point that he has now forgotten all the reasons he used to tell people.

The film ultimately is about those who are left behind and all the “whys” that come after.

“If it were death due to sickness or crime, there’s a clear-cut reason why this person died, but suicide is not the same thing. Those left behind wonder why it happened and if it was their fault or whose fault was it,” he said.

Mr. Nojiri may have done a film about suicide in Japan which serves as a mirror to Japanese society, but he admitted that he still worries about how his mother would view the film.

“I always get nervous giving interviews about the film because I worry about how my mother would feel if she reads something about it,” he said.

Lying to Mom is one of the films presented in this year’s Eiga Sai Japanese Film Festival which runs until Aug. 25 in several cities in the Philippines. The same film was also screened in the 2019 Cinemalaya Film Festival.

For more information on the film’s screening schedule, visit the Eiga Sai PH Facebook page. — Zsarlene B. Chua

China Bank net income climbs 18% in first half

CHINA BANKING Corp. (China Bank) and its subsidiaries posted a higher net income in the first half of the year on the back of continued growth in its loans and deposits.

In a statement on Wednesday, China Bank said it booked a consolidated net profit of P4.2 billion in the first semester, up 18% from the same period last year.

For the second quarter alone, its net income jumped 27% versus the previous quarter, the bank said. China Bank booked a P1.9-billion net income in the first quarter. Its quarterly report was not immediately available yesterday.

“Our strong financial performance in the first half reflects our good fundamentals that provide the foundation for sustainable growth. As we continue to build on our strengths, we are confident about meeting our goals for the year and delivering value to our customers and other stakeholders,” China Bank President William C. Whang was quoted as saying in the statement.

Return on equity stood at 9.45%, while return on assets was at 0.95%.

China Bank said its net interest income went up 6% to P11.7 billion in the first half on the back of double-digit growth in loans and securities.

Fee-based income climbed 61% to P3.4 billion, driven by higher trading gains and service fees and commissions.

The bank’s resources stood at P908 billion at end-June, up 18% year-on-year.

Gross loans totalled P533 billion, up by 12%, “driven by stronger demand across all customer segments,” China Bank said.

Despite the expansion, the bank’s non-performing loans (NPL) ratio improved to 1.2% at end-June from 1.5%, while NPL coverage expanded to 148%.

Meanwhile, deposits grew 15% to P750 billion, which China Bank said was on the back of a 15% increase in current and savings accounts.

The bank’s total capital funds went up 8% to P90.4 billion. Its common equity Tier 1 ratio stood at 12.9%, while its total capital adequacy ratio was at 13.8%.

Last month, China Bank listed on the Philippine Dealing & Exchange Corp. P30 billion raised via its maiden peso bond offering.

The one-and-a-half year debt papers carry an interest rate of 5.7% per annum to be paid on a monthly basis until January 2021.

The bonds offered from June 10-28 mark the first tranche of China Bank’s P75-billion fund-raising program for the next three years intended to support expansion and strategic initiatives.

China Bank shares went up 10 centavos or 0.38% to close at P26.45 apiece on Thursday. — B.M. Laforga

Wilcon Depot nets P511M in 2nd quarter

EARNINGS of Wilcon Depot, Inc. showed flat growth in the second quarter of 2019 due to the long holidays which affected the company’s number of operating days.

In a regulatory filing, the listed home and construction supplies retailer posted a net income of P510.92 million from April to June, 1.1% higher than the P505.22 million in the same period last year. This came amid a 14% increase in net sales to P6.04 billion.

“The flat earnings growth of 1.1% we had in the second quarter was mainly due to the base effect and the slowdown in sales because of the long holidays in April wherein we also had less number of operating days and the elections in May,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said in a statement.

On a six-month basis, Wilcon’s net income was up 8.8% to P994.55 million, following 17.8% growth in net sales to P11.79 billion.

Wilcon’s depot formats contributed 95.7% of total net sales at P11.28 billion, up by 18.1% year on year on the back of 4.5% growth in same-store sales. Sales from the home essentials format grew by 8% to P329 million, while sales to large property developers and the hospitality industry accounted for the remaining P173 million.

Capital expenditures for the first semester reached P1.31 billion, which went to the construction of new stores as well as furniture, equipment, computer software, and transportation equipment.

The company expects sales to improve in the second half, in a bid to hit the low teens earnings guidance it earlier provided.

“Our sales volume has been almost always higher during the second half of the year and thus we believe that we will be able to pull up our earnings growth to low teens level for the whole year as we previously guided,” Ms. Belo-Cincochan said.

Wilcon earlier said its revenues may grow in the high teens this year.

The company is targeting to have 100 stores by 2025, once it achieves its goal of having 65 branches by 2020.

Shares in Wilcon slipped 0.25% or four centavos to close at P15.68 each at the stock exchange on Thursday. — Arra B. Francia

US labor market slowing; job openings, hiring fall

WASHINGTON — US job openings and hiring fell in June, suggesting that demand for labor was cooling in tandem with a slowing economy, which could provide another reason for the Federal Reserve to cut interest rates again next month.

The report from the Labor Department on Tuesday came against the backdrop of an escalation in the trade war between the United States and China, which caused a sharp sell-off on Wall Street on Monday and sent US Treasury 10-year yields tumbling to the lowest since October 2016.

Concerns about the impact of the US-China trade tensions on the 10-year economic expansion, the longest in US history, prompted the Fed to cut rates last week for the first time since 2008. Financial markets have fully priced in further monetary policy easing at the US central bank’s Sept. 17-18 meeting.

“Companies may be having difficulty filling positions or may be reticent to hire given the growing uncertainty in the economy,” said Sophia Koropeckyj, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Business confidence has taken a beating this year.”

Job openings, a measure of labor demand, slipped by 36,000 to a seasonally adjusted 7.3 million in June, the government said in its monthly “Job Openings and Labor Turnover Survey,” or JOLTS. Since hitting an all-time high of 7.6 million in late 2018, job openings have been flat this year, suggesting some easing in labor market conditions.

The job openings rate dipped to 4.6% from 4.7% in May. There were declines in vacancies in the leisure and hospitality sector, and construction. But job openings increased in the real estate and rental and leasing industry, and state and local government education.

Hiring decreased by 58,000 jobs to 5.7 million in June. The hiring rate was unchanged at 3.8%. Hiring fell in the manufacturing and professional and business services industries. It increased by 76,000 jobs in the accommodation and food services industry.

DEMAND SLOWING
“Employer demand is slowing down, and the labor market isn’t improving at the rate that it was before, but things aren’t getting worse,” said Nick Bunker, an economist at Indeed Hiring Lab. “The slowdown is happening across the entire economy.”

The moderation in hiring in June suggests a big rebound in job growth in the months ahead is unlikely. Nonfarm payrolls increased by 164,000 jobs in July, down from 193,000 in June, the government reported last Friday.

Economists attribute some of the slowdown in hiring to the fading stimulus from last year’s $1.5 trillion tax cut package.

The economy grew at a 2.1% annualized rate in the second quarter, decelerating from the January-March quarter’s brisk 3.1% pace.

“Job openings have eased in such sectors as information, finance, and professional and business services, a possible harbinger of weaker employment gains in coming quarters,” Moody’s Analytics’ Koropeckyj said.

The number of workers voluntarily quitting their jobs dipped to 3.4 million in June from 3.5 million in May. The quits rate was unchanged at 2.3% for the 13th straight month.

The quits rate is viewed by policy makers and economists as a measure of job market confidence.

The decline in the number of workers quitting their jobs was concentrated in transportation, warehousing, and utilities, and state and local government, excluding education. There was, however, an increase in the number of workers quitting their jobs in the construction sector.

Layoffs edged down in June, pushing the layoffs rate to 1.1% from 1.2% in May. Layoffs fell in professional and business services as well as the arts, entertainment, and recreation sector, but rose in the accommodation and food services sector. — Reuters

Verdict is going to Venice

THE 2019 International Venice Film Festival has chosen Raymund Ribay Gutierrez’s Verdict as an official entry, making it the only Southeast Asian film to be chosen for the Horizons (Orizzonti) section.

The festival runs from Aug. 28 to Sept. 7 at Venice Lido, Italy.

Verdict joins 18 other entries in the Horizons competition section. The films chosen for the section are those which “represent the latest aesthetic and expressive trends in international cinema,” according to the festival website.

“Venice Film Festival is one of the most prominent film festivals in the world, and having Verdict compete there along with the world’s top-tier films is a fitting celebration for the One Hundred Years of Philippine Cinema,” said Film Development Council of the Philippines Chairperson and CEO Mary Liza Diño-Seguerra in a statement.

“We are very proud of Raymund and his mentor Brillante Mendoza for continuously making a mark in world cinema and showcasing Filipino talent on a global level,” she added.

The film, which stars Max Eigenmann and Kristoffer Martin, is produced by director Brillante Ma. Mendoza.

The film follows the steps of Lav Diaz’s Ang Babaeng Humayo (The Woman Who Left) which won the festival’s Golden Lion Award in 2016.

Mr. Gutierrez, whose film credits include the short films Judgment in 2018 and Imago in 2016 was nominated for the Palme d’Or Best Short Film in Cannes for both shorts. Imago additionally won Best Short Cuts at the Toronto International Film Festival, the Best Short Film Award at the Stockholm International Film Festival, and Best Short Film at the London Short Film Festival. — Zsarlene B. Chua

LANDBANK targets 15% growth in lending to farmers, lower interest rate

LAND BANK of the Philippines (LANDBANK) is planning to boost its loan portfolio to the agriculture sector to P265 billion by 2020 and P350 billion by 2022 and lower annual interest rates to 5% from the current 6%.

On a press briefing on Wednesday, LANDBANK President and CEO Cecilia C. Borromeo said the bank targets to expand its lending to farmers and fisherfolk to P231.25 billion by yearend for an annual growth rate of 15%.

“By 2020, the loans to agri sector will reach P265 billion and we’re looking to assist 2 million farmers. So it’s a consistent growth so by 2022, the portfolio of the bank to the agri sector will reach P350 billion,” Ms. Borromeo told the reporters.

Data provided to reporters showed LANDBANK’s exposure to the agriculture and fisheries sectors amounted to P177.32 billion as of end-June, 22.17% of the lender’s total loan portfolio of P799.64 billion — 16.8% higher than P151.78 billion recorded as of June 2018.

Ms. Borromeo added that the bank will try to reach out to more farmers, targeting to lend to 1 million farmers within the year and increase this to 3 million by 2022.

On top of this expanded loan portfolio, she said LANDBANK will be lowering its annual interest rate to borrowers from the agriculture sector — specifically farmers and fisherfolk — to 5% from the current 6%.

“We looked at the cost of our core deposit and our capital and we think that five percent is something we can manage. Because we hope to subsidize. We will subsidize that from our other commercial loans,” she added.

Meanwhile, rates for borrowers outside the agriculture sector will be maintained as they have to follow the “prevailing market interest rates,” the official said.

In his State of the Nation Address last month, President Rodrigo R. Duterte threatened to abolish LANDBANK for supposedly neglecting its mandate to finance agricultural projects and endeavors.

In response, the bank earlier said it is the only lender compliant with Republic Act 10000 or the Agri-Agra Reform Credit Act, which mandates banks to allot at least 10% of their total loanable funds to agrarian reform beneficiaries and 15% for farmers and fisherfolk.

Meanwhile, Ms. Borromeo said the bank wants to expand its branches to 50 by 2020 from the current 44 to reach the “underserved” regions of the country.

“We have 44 now, we are looking to increase that number to 50 in 2020 and we have initially identified three provinces. I already got approval from my board to open a lending [center] in Lanao del Norte and in Quirino. We’re working on the establishment of another lending center in Antique,” she said. — Beatrice M. Laforga

Medicare to cover expensive cancer cell therapies

THE US CENTERS for Medicare and Medicaid Services (CMS) on Wednesday said it has finalized a decision to cover expensive cancer cell therapies sold by Gilead Sciences Inc. and Novartis AG.

CMS, which runs Medicare — the federal government’s health plan for Americans 65 and older — said it will cover the US Food and Drug Administration-approved therapies when provided in health care facilities that have programs in place to track patient outcomes.

The nationwide decision clears up “a lot of confusion” about coverage and will help patients get access to the novel therapies, known as CAR-T, CMS Administrator Seema Verma said during a conference call with reporters on Wednesday.

The decision follows the agency’s finalization last week of a proposal to raise its maximum CAR-T payment to 65% of estimated costs from 50%. Some hospitals will also be eligible for supplemental payments in certain cases.

Both Gilead’s Yescarta and Novartis’ Kymriah were approved in 2017 for certain kinds of lymphoma and leukemia. But government and private health plans have balked at their high price of at least $373,000 for a one-time treatment before hospital costs, which can bring the bill for a single patient to over a million dollars.

More than half of lymphoma patients eligible for CAR-T therapy are estimated to be covered by Medicare. — Reuters

Emperador profit up 2% in 1st half

EMPERADOR, Inc. reported a net income attributable to the parent of P3.25 billion in the first half of 2019, following higher sales from its international business.

In a statement issued Thursday, the listed brandy company said attributable profit was 2% higher year on year, while revenues were up by 10% to P21.4 billion. The company did not provide second-quarter figures.

Emperador benefited from the growth of its whisky and brandy products in overseas markets, such as Africa, Canada, France, Germany, Greater Europe, Asia, and the United States.

The company noted that its Whyte and Mackay’s malt whisky products are “doing well,” alongside other brands Jura, Fettercairn, Tamnavaulin, and Shackleton. It also described its Fundador brand to be one of the fastest-growing imported spirits in the country.

Emperador is currently conducting a share buyback program worth up to P5 billion until May 16, 2020. So far, the company has already repurchased about 310 million shares worth around P2.2 billion.

Shares in Emperador dropped 0.26% or two centavos to close at P7.62 each at the stock exchange on Thursday. — Arra B. Francia

Nun other

Eerie
Directed by Mikhail Red
Citizen Jake vimeo site

AT ITS best Mikhail Red’s Eerie is exactly that: eerie. The son of pioneering indie filmmaker Raymond Red has I’d say inherited his father’s eye for editing, composition, and lighting, fashioning films that are (whatever else you might say about them) strikingly visual, with accompanying social commentary.

Classic horror with its reliance on atmosphere and imagery seems a natural fit for the filmmaker; the real surprise to my mind is that Red didn’t start in the genre — his debut feature Rekorder is about a camcorder operator who sneaks into theaters to pirate first-run movies; Birdshot about a girl who shoots down the endangered Philippine eagle; Neomanila about an orphaned youth recruited into a notorious death squad. Red seems to have circled — tentatively, hesitantly — till he could finally swoop down to claim the genre for his own.

The results are mixed alas — disappointing if you’re thinking of Red’s natural abilities, not so if you remember his tendency to willfully pick the less easy, less obvious path.

The scene is a Catholic girl’s school, the fictional Sta. Lucia Academy; one of the students has been found dead. Pat (Bea Alonzo) is a guidance counselor enjoying easy rapport with the students, plus a sideline hobby of keeping in touch with alumni, of the undead kind.

Red’s film purrs along in these early scenes: the eloquently moody lighting, the often pleasingly angled if not symmetrical compositions, the leisurely pacing that — when the story pivots — turns unbearably tense. I’ll cite one shot early on, of a row of glass panes, where the overhead neons blink off one by one — a simple shot with little overt relevance to the main narrative, save establishing with superb assurance a tone of quiet foreboding and encroaching darkness.

The film is bracingly old-school — a refreshing lack of handheld camerawork, maybe a spare handful of shock cuts, precious little in the way of digital effects. One thinks of Ti West’s approach to horror, in films like The House of the Devil and The Innkeepers, where a seamless script and perfect plausibility is sacrificed in the name of style, and the single most unsettling element isn’t the supposed phantoms or diabolical spirits but the restlessly sidling camera.

That and the massive old academy with its brooding chapel and endless hallways. The statuary, some of which are draped with cloth and seemingly ready to move once your back is turned (cue David Tennant whispering urgently in your ear “Don’t blink”). The religious paraphernalia with the accompanying weight of centuries of Spanish-Filipino Catholicism, and most of all the nuns — imperiously tall and sheathed in black cloth, you can almost imagine them unwrapping to reveal a cape the color of night, or giant batwings stretching up into the moonlit sky.

Tallest and most imperious is Sor Alice, the reverend mother ruling the institution with iron hand, played by the still-beautiful Charo Santos-Concio — appropriate, considering that her first film was Mike de Leon’s Itim, a gothic thriller whose influence has stretched over the years to loom over this, one of its many progeny.

De Leon’s film — his first feature — is a touch light on social commentary, mainly some subtext about the tyranny of the upper class in general and the male patriarchy in particular. Red isn’t operating on his level, but does do De Leon better by lightly (perhaps too lightly) touching on (among others) self-harm, bullying, homophobia, domestic violence, the stigma against mental health issues, the tendency of religious institutions to cover up crimes rather than uncover the truth.

Eerie is far from perfect. One wishes for a more unconventional sound design (loud noises to startle viewers and clanging music for chase sequences is so ’80s) and makeup (you can tell the director saw Corin Hardy’s The Nun). One wants to learn more about Pat — we’re teased with the detail that her brother committed suicide but learn little else. Why is she so passionate about reaching out to her students? How did she acquire her supernatural senses (don’t need a definitive answer, just maybe some speculation on the subject)? Why (skip the rest of this paragraph if you plan to see the film!) set Pat so squarely against Sor Alice when you’re just going to deflect the blame elsewhere? Makes for a clever twist, true, but religious oppression and sexual abuse are classic motives for bullying, and equally classic motives for taking revenge, and Alice was shaping up to be such a magnificent villainess — Nurse Ratched in Count Dracula drag — that to learn she isn’t (or isn’t completely) guilty is a keen disappointment. As for the choice of true culprit — you catch a whiff, likely unintentional, of “blame it on the victim” behind that line of thinking.

No, not a perfect horror, not even a particularly innovative one. But as an exercise in low-key scares done in sleek seductive style you could do much much worse (James Wan’s The Conjuring with its heavy-breathing shock tactics comes to mind). Here’s to Red’s next film, hopefully with a more solidly constructed script.

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