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Smart rolls out LTE capacity upgrades to Metro Manila sites

PLDT, Inc.’s wireless mobile unit Smart Communications, Inc. said 92% of its network sites in Metro Manila has Long Term Evolution (LTE) and LTE-Advanced (LTE-A) coverage.
In a statement on Tuesday, Aug. 7, the telco giant said it has successfully upgraded its network sites in Quezon City, Marikina City, Caloocan City, Valenzuela City, Navotas City and Malabon City.
For Makati City and Manila City, the Pangilinan-led company said it expects completion of the LTE upgrade by October.
“Smart has deployed over 2,000 LTE sites across Metro Manila, which use low-frequency bands such as the 700 MHz band for wider coverage and better indoor penetration, and high-frequency bands like 1800 MHz and 2100 MHz bands for additional capacity,” it said.
It added, the company has “deployed carrier aggregation technology across all of Metro Manila’s 17 cities and municipalities, paving the way for much greater speeds in Metro Manila, where over 12 million Filipinos work and live.”
Last month, PLDT and Smart said it has been awarded by Internet speed-testing company Ookla the fastest fixed and mobile network in the country during the first half of 2018.
PLDT has allocated a P58-billion capital expenditure for the year, and its Smart unit is pushing for a more aggressive roll out of its LTE and LTE-A services.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Second tax reform package up for plenary debate

THE HOUSE ways and means committee approved the Department of Finance’s (DoF) second tax reform package on Tuesday, Aug. 7.
The unnumbered substitute bill, now known as the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO), will now be up for plenary debates at the House of Representatives after it was approved by the committee during the sixth public hearing on Tuesday.
The bill now proposes to cut the corporate income tax rate from 30% to 20% gradually, or a 2% deduction every other year beginning 2021 until 2029.
However the President can accelerate the pace of the lowering of tax rates when adequate savings are realized from the rationalization of tax incentives.
It also proposed to overhaul fiscal incentives to an 18% preferential rate on net income limited for five years and only eligible for industries included in the Strategic Investment Priorities Plan (SIPP) with a sunset period of two to five years depending on the length of validity of tax perks in firms’ existing contracts with investment-promotion agencies (IPAs).
This is from the current 5% tax on gross income in lieu of all other national and local taxes granted by various IPAs, and are enjoyed in perpetuity. — Elijah Joseph C. Tubayan

Nickel Asia’s net income inches up in first half

Nickel Asia Corp. (NAC) reported a 2.18% increase in attributable net income for the first half of 2018 to P1.57 billion, due to rising rising nickel demand to supply the electric vehicle batteries.
In a regulatory filing to the Stock Exchange on Tuesday, Aug. 7, NAC said its two processing plants, Coral Bay Nickel Corp. (CNBC) and Taganito HPAL Nickel Corp. (THPAL), benefited from the increasing LME nickel price brought on the the surge in electric vehicle production.
“Consequently, the Company recognized P526 million of earnings from its 10% share in the two plants during the first six months of the year compared to P55 million reported in 2017,” NAC said.
This, and the weaker peso-to-dollar exchange rate, buoyed the company’s profit despite the drop in revenues.
NAC president Martin Antonion G. Zamora in the statement pointed to a strong competition with Indonesia in ore shipments which led to a drop in export prices as the reason for a 5.70% drop in revenues to P7.38 billion from P7.82 billion a year ago.
Mr. Zamora noted that this has been the company’s “biggest challenge” for this year.
“On the other hand, we expect to continue benefitting from a significant price improvement on ore deliveries to the two processing plants, which are linked to LME prices,” he added. — Anna Gabriela A. Mogato

Petron earnings up by 16% in first half

Petron Corp. net income rose in the first half as sales volumes in its local and Malaysian markets were sustained while prices of petroleum products during the period came out higher.
In a disclosure to the stock exchange on Tuesday, Aug. 7, Petron said its net income rose by 16% to P9.5 billion in the first half from P8.2 billion a year ago.
Consolidated revenues rose 32% in the first half to P273.5 billion from P207 billion in the same period last year “driven by sustained sales volumes of its Philippine and Malaysian operations and higher prices of crude oil and finished products.”
It said consolidated sales volumes expanded to 54.4 million barrels. Benchmark Dubai crude oil in the first semester averaged $68 per barrel, 32% higher compared with the level in the same period last year.
“We intend to fortify our leadership position as we ride on the continued economic growth of the Philippine and Malaysian markets. We continue to integrate our value chain, build up our supply and logistics capabilities, and roll-out more service stations than our competitors,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement. — Victor V. Saulon

Meralco power rates to rise this month

Manila Electric Co. (Meralco) has announced an increase in the overall electricity rates for August at P10.2190 per kilowatt-hour (kWh), or P0.0265 higher than the previous month’s P10.1925 per kWh.
The company attributed the higher rates for the month to the increase in the charges in its power supply agreements (PSAs), which pushed up the generation charge, the biggest component of consumers’ monthly bill at nearly 60%.
For a typical household using 200 kWh, the adjustment means a rise of P5 in their total monthly bill. The corresponding increase for those using 300 kWh, 400 kWh and 500 kWh is P7.95, P10.60 and P13.25, respectively. — Victor V. Saulon

PSBank speeds up approval of home loan applications

Philippine Savings Bank (PSBank) sets its decision on home loan applications to one day for the purchase of condominium units and properties.
In a statement sent on Tuesday, the savings banking arm of Metropolitan Bank & Trust Co. said it will only take a day for the bank to grant loans for brand new condominium units and properties from accredited developers.
PSBank Senior Vice-President Noel Tuazon said the process of providing a credit decision within a day follows streamlining of internal evaluation processes.
“[This allows] the bank to offer the fastest possible credit decision on home loan applications for condominiums available in the country,” Mr. Tuazon was quoted as saying in the statement.
He added that the new approval process is available to clients who wish to buy units from accredited developers such as Federal Land, SM Development, DMCI, Megaworld, Eton Properties, Rockwell and Ayala Land Premier among others.
On the other hand, approval process on condominium units and properties from non-accredited developers shall have the standard credit decision of five days through text message. This will be applied as well to loan applications on acquiring house and lot, vacant lot and townhouse or duplex among others. — Karl Angelo N. Vidal

Shakey’s H1 earnings up by 7%

Shakey’s Pizza Asia Ventures, Inc. (SPAVI) grew its earnings by seven percent in the first six months of 2018, as higher prices of raw materials tempered the double-digit increase in sales.
The listed casual restaurant operator reported P396 million in net income for the first semester of the year, higher than the P371 million it delivered in the same period a year ago.
“Despite the slight compression in our margins year-on-year, we remain above average in terms of our profitability metrics and see this as an advantage in weathering competitive headwinds,” SPAVI President and Chief Executive Officer Vicente Gregorio said in a statement. — Arra B. Francia

Security Bank profit down in first half

Security Bank Corp. booked lower net income in the first half of the year on the back of lower trading gains and increase in provision for income tax.
In a regulatory filing on Tuesday, the listed lender said its net profit in the six months ending June stood at P4.3 billion, down 18% or P951 million from the P5.3 billion recorded in the same period last year.
Security Bank said it logged lower net income in the said period primarily due to the decrease in trading gains by 59% or P655 million from the first semester last year.
The bank meanwhile saw an increase in provision for income tax by 55% or P424 million in a comparable year-ago period.
Despite this, the bank’s net interest income climbed 8% to P10 billion from the P9.3 billion a year ago.
Net interest income from customer loans and deposits was at P7.4 billion, a 34% increase from last year’s P5.6 billion.
Total loans reached P383 billion as of end-June, 12% higher from the P340 billion recorded a year ago.
Consumer loans jumped 50% as it accounts for 18% of Security Bank’s total loan portfolio. Wholesale loans likewise grew 7%.
Security Bank’s non-performing loans (NPL) ratio was at 0.6% from last year’s 0.7%, while NPL reserve cover stood at 261%, which the bank said is the highest in the country. — Karl Angelo N. Vidal

Choosing the right CTO, tech's unsung hero

Many articles give advice to early stage founders on how to find the right co-founders. The authors have the right spirit, but their goal is often too broad. Rather than concerning themselves with finding the right team of co-founders, the founder must first concern themselves with one, and only one, type of peer: the CTO, or the chief technology officer.

Essentially, the job of the CTO is to develop and implement technology and company policy surrounding technology. As you can imagine, for a tech startup, they’re both the core and backbone of the business.

I often find other founders of budding startups looking to first recruit a chief operations officer, or other (in my opinion) non-essential founding roles. If you want to be the CEO of a tech startup, your priority should be finding a great CTO. This hire will define your organization, your product, and your future, so you need to make every effort to find your true match.

I myself was lucky to find my CTO, Kenneth Baylosis, over the course of a single weekend. Back in 2012, we both participated in Startup Weekend Cebu, and we ended up building a prototype over 48 hours for what has today become a venture-backed, taxi-hailing platform Micab available across the Philippines in Metro Manila, Cebu City, Baguio, Bacolod, and Iloilo.

Based on my experience, here are three principles you need to follow to find the right CTO for your tech startup.

Find a CTO that is “T-shaped”.

There is a prevailing stereotype about engineers—introverted types who shy away from the business, preferring to focus on just the tech. Having exceptional tech skills is, of course, important. But it’s only a start. For a startup to succeed, it must not only have a great product, but also a sound business model, and the CTO is essential in building that model.

That’s why I actively recommend that founders look for a CTO who is T-shaped. That is, they have deep expertise in a particular aspect of technology central to your product, and they also have a breadth of business skills in other areas, such as operations, sales, finance, or marketing that can aid your company in the long-term.

I knew Kenneth had both breadth and depth because he was already successfully managing his own web development shop. If they have the skills to run a traditional service business, they also have what it takes to launch and scale a tech startup.

Find a CTO who shares your pain.

One of the most common pieces of startup advice is that entrepreneurs should try to solve a problem that they themselves experience. Unfortunately, that root problem is often only the CEO’s, with everyone else left trying to understand it through their lens. This is just as bad as only one founder understanding the intricacies of the end product. It’s a recipe for disaster.

So let me nuance that common bit of advice. All co-founders should have direct experience with the problem, the CTO most of all. They are the ones, after all, who will decide how your company uses technology to solve the problem.

Again, I was fortunate enough to find this in Kenneth. We both regularly commuted across Cebu, and felt how difficult it was to get a cab when we needed one. Because we both dealt with the same pain points, when we came together to develop a solution, we were in sync.

Find a CTO who is in it for the long haul.

Another common saying about founding startups: the relationship between co-founders is almost like a marriage. In my mind, you need to prepare for it like one. The highs are easy to go through. It’s the lows, of which there will be many, where a team’s resilience will be tested.

Like any startup, Micab had many lows, some that even threatened the core of the company. I remember the public relations blowback we got on social media because of a mistaken report that we had launched in Manila before we actually did.

Then there was the LTFRB’s order to suspend our operations pending the granting of our accreditation.

Through these events, Kenneth proved his mettle by fighting time and time again for the company. And I was confident he would, in large part because of what happened the very first day we met at Startup Weekend Cebu.

Shortly after forming our team, we found ourselves disagreeing about whether taxi-hailing would best be executed as a value-added service over SMS or as a mobile app. Basically, if we should have users text in their requests, or if we should build a dedicated app for the service.

Our debate became very passionate (he was for SMS; I was for the mobile app) and we started raising our voices above the din of the crowd. But we never made it personal. We were both passionate because we both cared about the same thing: the product.

If you can find a CTO who believes in your product enough to fight anyone – even you – for it, then you’ve found yourself a committed partner.

Eddie Ybanez is the founder and CEO of MiCab. Based in Cebu, he is a “hacker” by training and by heart.

GERI earnings up 18% in first half

Global-Estate Resorts, Inc. (GERI) posted an 18% attributable profit growth during the first six months of 2018, driven by a surge in rental revenues due to the opening of its first full-scale mall in Laguna.
In a statement issued Tuesday, the leisure and tourism estate firm of tycoon Andrew L. Tan saw its net income attributable to equity holders of the parent climb to P794 million for the first semester, compared to the P670 million it realized in the same period a year ago.
Consolidated revenues likewise firmed up five percent to P3.3 billion for the period. — Arra B. Francia

Most major Asian markets up but trade fears keep dealers at bay

Hong Kong, China — Most major Asian markets rose on Tuesday following another positive Wall Street lead, with energy firms up with oil prices as the US prepares to reimpose sanctions on Iran.
A healthy earnings season has provided support to global equities in recent weeks but gains have been limited by ongoing concerns about the simmering trade war between China and the US.
As investors await the next developments in the tariffs spat, they moved in to pick up cheaper stocks, with Hong Kong building on Monday’s gains and Shanghai edging back up the day after hitting a near two-and-a-half-year low.
By the break Tokyo was 0.2 percent higher and Singapore climbed more than one percent while Seoul gained 0.2 percent. However, Sydney dipped 0.3 percent, while Wellington, Taipei and Manila were also lower.
Energy firms were among the winners after a rise in oil prices Monday that came on the back of reports that Saudi Arabia had lowered its oil output.
Also, the US is preparing at 0400 GMT to reimpose stiff sanctions on Iran following Donald Trump’s decision to exit a multi-nation nuclear deal with the major producer.
However, with the move broadly priced in over recent weeks, crude was flat on Tuesday in Asian trade.
But the issue has fuelled geopolitical concerns, with some observers saying the White House is working towards regime change in Tehran.
Iran’s leaders have dismissed Trump’s offer of talks, saying the US was carrying out “psychological warfare”.
“This feels like a movie we’ve all seen before in Afghanistan and Iraq and would appear to go counter to the approach President Trump seemed to have mapped out for the Middle East,” said Greg McKenna, chief market strategist at AxiTrader.
“It’s a dangerous strategy given historical precedents and the entrenched Iranian regime. But, like the trade war with China and almost everything else the administration is pursuing this, too, looks like a negotiating tactic.”
On currency exchanges the pound was stuck around 11-month lows after tumbling in reaction to Britain’s trade secretary Liam Fox warning the odds of leaving the EU without a deal were “60-40”.
That came on top of comments from Bank of England boss Mark Carney, who said the chance of leaving the EU without a deal was “uncomfortably high” and “highly undesirable”.
The euro was also struggling to bounce back from Monday’s losses caused by news that industrial orders in Germany, Europe’s biggest economy, fell more than expected in June. — AFP

Factory output growth slows in June

The country’s manufacturing activity sustained its double-digit growth pace for the sixth straight month in June, the government reported this afternoon.
Preliminary results from the Philippine Statistics Authority showed factory output, as measured by the Volume of Production Index, increasing 18% year on year in June, slower compared to 21% logged in the previous month but was a turnaround from June 2017’s 0.1% contraction.
Notable gains were observed in printing (116.3%), petroleum products (60.7%), textiles (36.7%), miscellaneous manufactures (21.0%), rubber and plastic products (20.7%), machinery except electrical (20.3%), electrical machinery (17.1%), food manufacturing (14.7%) and beverages (10.1%).
On the other hand, sectors which saw contractions in June were: tobacco products (-52.8%), wood and wood products (-14.6%), transport equipment (-9.3%), furniture and fixtures (-2.8%), footwear and wearing apparel (-2.2%) and chemical products (-1.4%).
Capacity utilization rate, which represents how much of factory capacity is in use, averaged 84.3%, with 12 of the 20 sectors registering capacity utilization rates of at least 80%. — Jochebed B. Gonzales

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