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Aviation regulator starts hearings on Cebu Pacific issues

By Denise A. Valdez
Reporter

THE CIVIL Aeronautics Board (CAB) is asking Cebu Pacific operator Cebu Air, Inc. to submit additional requirements as the regulator on Thursday conducted its first formal hearing on the carrier’s recent wave of flight cancellations.

CAB Executive Director Carmelo L. Arcilla said in a telephone interview on Thursday that the CAB had scheduled a second hearing with the budget carrier on May 6, Monday, to determine if penalties are warranted.

“We are not yet done…,” Mr. Arcilla said.

“We required them to submit other explanations. For example, we want them to submit a process analysis of what is happening in the airport, starting from the time that the passenger arrives, what happens to the aircraft before it takes off,” he explained.

“We want to understand where the problem lies.”

He recalled that Cebu Pacific representatives said “[t]hey do not want to prolong the inconvenience of the riding public, so they decided to cancel flights.”

Cebu Pacific officials would not comment when asked about the hearing.

Cebu Pacific has been cancelling “approximately 10 flights a day” for the month of May, on top of the 23 flights it had already cancelled from April 28 to 30.

It said in a disclosure to the stock exchange on Tuesday that it is reducing its daily operations of 400 flights this month to “create space in its schedule for operational recovery.”

“Cebu Pacific has to temporarily reduce the number of its flights given the current operating conditions, particularly in its Manila hub,” the budget carrier had said.

In order to dispel reports linking the flight cancellations to the formation this month of a cabin crew union, the group, Juan Wing Association of the Philippines, said in a social media post on Thursday that it has been “working side by side with Cebu Pacific management” to address the situation.

“As of the moment, the cabin crew are working to the best of their abilities to assist in easing up the situation. Our cabin crew are exhausting all means to make sure that all affected guests are genuinely accommodated…” it said.

Shares in Cebu Air lost P1.80 apiece or 2.20% to close at P80.20 each on Thursday.

Economists expect negative to flat first-quarter agriculture performance

By Janina C. Lim
Reporter

ECONOMISTS expect production of agriculture — which contributes a tenth to gross domestic product (GDP) and a fourth of jobs in the country — to have contracted or registered flattish increment at best last quarter in the face of an El Niño-induced dry spell, according to separate interviews earlier this week.

The Philippine Statistics Authority (PSA) is scheduled to release first-quarter farm production figures on May 8, together with March and first-quarter trade-in-goods data, a day ahead of its GDP report. It will also report April inflation and March manufacturing performance on May 7.

Sought for his estimates on first-quarter farm output performance, Rolando T. Dy, executive director at the University of Asia and the Pacific’s Center for Food and Agri-Business, said “my guess is flat to one percent” expansion.

“Palay is down 1.3%, corn up by 1.2% per PSA; very likely many crops will be drought-impacted,” Mr. Dy said in a mobile phone message on Tuesday.

The PSA’s latest updates on first-quarter palay and corn production estimates, released on April 15, put palay output at 4.56 million metric tons (MMT), down 1.3% from 4.62 MMT a year ago amid a 3.5% contraction in harvest area from 1.195 million hectares (ha), while corn production likely dropped 1.2% to 2.48 MMT from 2.51 MMT a year ago as harvest area dropped to 707,370 ha from 722,460 ha.

Asked separately on her expectation, Marites M. Tiongco, associate professor and dean of the De La Salle University’s School of Economics, said via text message on Wednesday: “… It will be slow growth and still negative”, while Roehlano M. Briones, senior research fellow at the Philippine Institute for Development Studies, replied: “I suspect slower because we are in El Niño and last year we were coming out of it.”

Last year saw agriculture production grow by 1.47% in the first quarter and 1.8% in the final three months, helping to buoy 2018’s performance to a nearly flat 0.56% compared to 2017’s 3.96%.

The 2017-2022 targets 2.5-3.5% farm output growth.

As of April 25, farm losses to the dry spell amounted to some P7.96 billion, involving rice, corn, high value crops and fisheries.

Agriculture Secretary Emmanuel F. Piñol had downplayed the impact of the current dry spell particularly on rice and corn.

“Despite the impact of El Niño on rice and corn production, their respective production targets can still be met as reported losses are only 0.96% (197,700 MT) of the 20 million MT target for rice and only 2.94% (254,766 MT) of the 8.64 million MT target for corn,” Mr. Piñol said in a Facebook post on Thursday last week.

Metro Pacific core profit hits P3.7B in Q1

By Arra B. Francia, Senior Reporter

INFRASTRUCTURE conglomerate Metro Pacific Investments Corp. (MPIC) delivered a three percent increase in core profit during the first quarter of 2019, supported by the growth of its energy, water, and hospital businesses amid the flat performance of its toll roads unit.

In a statement issued Thursday, the listed firm said core net income stood at P3.7 billion for the first three months of the year, higher than the P3.6 billion it posted in the same period a year ago. Operating revenues climbed 10% to P21.37 billion.

“We were flat in spite of an 8% increase in the operating income from the (subsidiaries)… In terms of operations, all of them did well but toll roads is the only one that stands out, it’s flat compared to last year,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said in a press briefing in Makati on Thursday.

Mr. Lim noted that the toll roads business under Metro Pacific Tollways Corp. (MPTC) incurred interest expenses due to the number of road projects it is funding.

“Until these new roads are able to contribute their share of income, the bottom line of toll roads will remain weakened by interest,” Mr. Lim said.

The power business accounted for bulk of MPIC’s operating income at 54% or P2.7 billion, followed by toll roads at 23% or P1.1 billion. The water unit contributed 18% or about P900 million; the hospital group booked P242 million or five percent of the operating income, while the rail, logistics and systems group delivered P7 million.

Manila Electric Company (Meralco) saw its core profit rise by 14% to P5.6 billion for the quarter, as revenues also went up by six percent to P75.4 billion. This was driven by increased energy sales alongside higher pass-through generation charges.

Meanwhile, Global Business Power Corp. revenues fell nine percent for the quarter, resulting to a net income of P398 million.

For toll roads, MPTC’s systemwide vehicle entries was flat at 929,015 a day, covering both its domestic and regional road networks. In the Philippines alone, average daily vehicle entries climbed eight percent to 510,510. Its toll roads in Bangkok and Indonesia declined by six percent to 418,505 due to construction and road integration within their concession areas.

West zone concessionaire Maynilad Water Services, Inc., which accounts for majority of MPIC’s water business, booked an eight percent increase in revenues to P5.7 billion following a two percent uptick in volume sold accompanied by the approval of tariff increases.

“Water benefited from tariff with 2.7% increase in 2018 and 5.7% increase for inflation this year,” Mr. Lim said.

For the hospital unit, aggregate revenues grew by 17% as outpatient visits also recorded a double-digit increase. Core income accordingly went up by 28%.

“Continuing strong demand for the services we provide, against a backdrop of steady economic growth, underpins our optimism for 2019,” MPIC Chairman Manuel V. Pangilinan said in a statement.

“Our focus over the medium term is to build out the many new infrastructure assets we are working on in order to deliver value to our shareholders and with this, to find suitable financing arrangements which will enhance profitability, earnings per share, and the Net Asset Value of MPIC.”

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.

Shares in MPIC dropped 3.94% to 18 centavos to close at P4.39 each at the stock exchange on Thursday.

Hospital operator shelves IPO plan

METRO PACIFIC Hospital Holdings, Inc. (MPHHI) has shelved its plan to debut on the stock market as management prefers to keep the business private.

“I think I’ve been successful in convincing them (the board) not to conduct an IPO (initial public offering) for the hospitals space,” MPHHI President and Chief Executive Officer Augusto P. Palisoc, Jr. said in a press briefing in Makati yesterday.

The hospital unit of conglomerate Metro Pacific Holdings, Inc. (MPIC) has been mulling an IPO in the previous years, stating last February that the goal is to raise up to P15-20 billion in fresh capital for its expansion.

“I believe the course of action might be towards more on private transaction, possibly with another investor. It really depends on the funding requirements of MPIC actually,” Mr. Palisoc said.

“As far as the hospital group is concerned, we’ll just continue to deliver the good results we have been doing. The business is strong enough by itself,” he added.

MPIC Chief Finance Officer David J. Nicol noted that the interest rate environment is different now compared to when they first disclosed plans to conduct the IPO.

“What I’m saying is the funding environment is a lot more benign for us given the lower interest rates that we have been facing previously… The dynamics surrounding the idea of conducting an IPO has completely changed given the macro environment for our financing needs anyway,” Mr. Nicol said in the same briefing.

Mr. Nicol earlier said the amount to be raised from a potential IPO could be used to achieve the company’s goal to have up to 40 hospitals. This will involve the acquisition of smaller hospitals as the company now has control of several big players in the industry.

MPHHI operates a total of 14 hospitals offering about 3,200 beds. Makati Medical Center, Cardinal Santos Medical Center, Our Lady of Lourdes Hospital, Asian Hospital, De Los Santos Medical Center, Manila Doctors Hospital, Marikina Valley Medical Center, Inc., and Dr. Jesus C. Delgado Memorial Hospital.

The company also has interest in Davao Doctors Hospital, Riverside Medical Center in Bacolod, Central Luzon Doctors Hospital in Tarlac, West Metro Medical Center in Zamboanga, Sacred Heart Hospital of Malolos, Inc. in Bulacan and St. Elizabeth Hospital, Inc. in General Santos City.

The group has also expressed interest in Ortigas-based The Medical City, although it is waiting for the company to resolve internal ownership issues before stepping in.

MPHHI booked a 17% increase in aggregate revenues to P3.98 billion in the first quarter of 2019, on the back of a 10% jump in outpatient visits to 919,539 and a seven percent rise in in-patient admissions to 50,227. — Arra B. Francia

AEV profit drops 27% in Q1

ABOITIZ Equity Ventures, Inc. (AEV) posted a 27% decline in first-quarter consolidated net income to P3.5 billion from P4.8 billion a year ago, due in part to non-recurring losses, the company told the stock exchange on Thursday.

Without the one-time losses, the holding firm’s core net income at P3.9 billion during the quarter was lower by 27% compared with the previous year’s level.

During the January to March period, the firm recognized non-recurring losses of P334 million, primarily because of unrealized foreign exchange losses from the revaluation of dollar-denominated assets and recognized losses on derivatives, which were lower than the P424-million foreign exchange losses in the same quarter last year.

Power accounted for 71% of the total income contributions from AEV’s strategic business units, while financial services accounted for 27%. The rest came from food, infrastructure and property businesses.

LOWER PROFIT FROM POWER
During the quarter, Aboitiz Power Corp. registered a consolidated net income of P3.6 billion, down 9% from the P4 billion posted in the same period last year. Its net income contribution to AEV likewise slipped 9% to P2.8 billion.

AboitizPower’s non-recurring losses of P440 million were significantly lower compared with the P1.2 billion a year ago. Without the one-off losses, core net income was P4.1 billion, or lower by 21% because of the higher volume and cost of purchased power.

“It has been a challenging first quarter for the industry and AboitizPower. The planned maintenance shutdown of power plants in preparation for the upcoming elections, coupled with forced outages, resulted in the grid’s thinning reserves. Despite this, our customers remain our top priority and we ensured delivery of replacement power from the spot market,” said Emmanuel V. Rubio, AboitizPower executive vice-president and chief operating officer.

AboitizPower said spot market prices were “exceptionally high” during the quarter, and the company purchased replacement power due to outages and over-contracting in preparation for Therma Visayas, Inc. (TVI) coming online.

The company registered consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) of P10.4 billion, down 13% from the P11.9 billion a year ago.

AboitizPower’s generation and retail supply business posted a consolidated EBITDA of P8.6 billion, 15% lower than the P10.1 billion previously. The drop was largely because of the higher volume and cost of purchased power.

Capacity sold for the first quarter slid 7% to 2,947 megawatts (MW) from 3,174 MW.

“We are excited with new supply contracts and new power plants that have started to deliver power to the grid, which should contribute to our bottom line starting this year,” Mr. Rubio said.

“We will continue to pursue our renewable energy projects as we look forward to the implementation of the Green Energy Option Program and Renewable Portfolio Standards. We are committed to continue providing the country with adequate power supply that is affordable and sustainable,” he added.

BANKING INCOME DROPS
Meanwhile, the Aboitiz banking unit Union Bank of the Philippines recorded a 25% drop in income contribution to AEV to P1.1 billion from P1.4 billion a year ago.

On a stand-alone basis, UnionBank and its subsidiaries recorded a net income of P2.2 billion, down by 26% from P2.9 billion a year ago. Still, the bank’s recurring income improved as net interest income and fee income increased to P4.7 billion and P530 million, respectively, from P4.6 billion and P313 million previously.

UnionBank’s earnings performance translated in a return on equity of 9.6%, return on assets of 1.3%, and revenue-to-expense ratio of 1.6x.

AEV’s non-listed food subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd., which now includes Gold Coin Management Holdings Ltd., reported a consolidated net income of P137 million, a 48% decrease from the P264 million.

Feeds Philippines’ net income of P12 million was 89% lower because of the increased raw materials costs.

AEV’s non-listed real estate segment, comprising AboitizLand, Inc. and its subsidiaries, recorded a consolidated net loss of P44 million, reversing the previous year’s P59-million net income.

This decrease was due to the deferred revenue recognition of industrial lot sales combined with higher direct project expenses, the company said.

For the infrastructure group, Republic Cement & Building Materials, Inc.’s first-quarter contribution to AEV was a net loss of P32 million, 61% lower than the P82-million net loss reported a year ago.

“This was mainly due to improved control on production costs in addition to stable market prices and private sector demand,” AEV said. — Victor V. Saulon

Avengers: Endgame shatters PHL box-office records

THE final film of Marvel’s Avengers Infinity saga, Avengers: Endgame, shattered Philippine box- office records as it posted P937.5 million over the four days since it opened on April 24, making it the film with the biggest opening weekend of all time.

The 22nd film off of the Marvel Cinematic Universe franchise replaced its predecessor at the top — Avengers: Infinity War (2018) earned P650.1 million during its opening weekend in the Philippines.

Avengers: Endgame follows the events of Infinity War where Thanos, a nihilist demigod, used the Infinity Stones to destroy half of all life in the universe and how the remaining Avengers — Thor, Black Widow, Captain America, and Bruce Banner — must figure out a way to bring back their vanquished allies to defeat Thanos.

The film’s ensemble includes Robert Downey, Jr. as Iron Man, Chris Evans as Captain America, Mark Ruffalo as Bruce Banner/Hulk, Chris Hemsworth as Thor, Scarlett Johansson as Black Widow, and Jeremy Renner as Hawkeye.

The film, with its $356-million budget, is also considered one of the most expensive movies ever made (unofficially, the most expensive movie ever made based on their announced budget was Rob Marshall’s Pirates of the Caribbean: On Stranger Tides in 2011 with a budget of $378.5 million).

To date, the film has earned $1.34 billion worldwide according to Box Office Mojo, an online box office reporting service. Its earnings make it the 10th highest grossing film ever made — so far — with the top spot held by James Cameron’s Avatar (2009) which earned $2.79 billion during its entire run.

The second highest grossing film is also a James Cameron film, Titanic (1997) which earned $2.19 billion. — Zsarlene B. Chua

Panlilio set to return to PLDT group

PLDT, Inc. and its wireless unit Smart Communications, Inc. announced on Thursday that Alfredo S. Panlilio will be returning in July as its chief revenue officer.

Current PLDT-Smart Chief Revenue Officer Ernesto “Eric” A. Alberto is set to leave his post by June 30.

“We would like to thank Eric for his 16 long years of service and loyalty… As Chief Revenue Officer for PLDT and Smart, he led the team that turned around our Consumer Wireless business while sustaining the robust double digit growth of both Home and Enterprise,” PLDT-Smart Chairman, President and Chief Executive Officer (CEO) Manuel V. Pangilinan was quoted as saying in the statement.

The PLDT chief did not elaborate on where Mr. Alberto will be headed, but noted he has “ongoing discussions with Eric regarding opportunities that he may pursue with the First Pacific Group.”

Hong Kong-based First Pacific Co. Ltd. has presence in the Philippines through key units PLDT, Metro Pacific Investments Corp. and Philex Mining Corp. Mr. Pangilinan leads First Pacific as its CEO and managing director.

Mr. Alberto was appointed to the chief revenue officer position in 2016, where he was asked to report directly to Mr. Pangilinan.

Around the same time, Mr. Pangilinan said he wanted a new CEO “no later than early 2018.” He eventually said in March 2018 that he was “ready to go” as soon as PLDT sustains its growth momentum.

Mr. Panlilio’s comeback to the telco firm comes after joining Manila Electric Co. (Meralco) in 2010, where he worked as senior vice-president for Customer Retail Services. He will be leaving his post in Meralco to Victor Emmanuel S. Genuino, the company’s current vice-president and head of Corporate Business Group.

Mr. Panlilio first joined PLDT in 1999 as its senior vice-president for Corporate Business Group. He eventually became the head of PLDT’s Carrier Business Group before moving to Meralco.

Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

K-Pop stardom lures Japanese youth to Korea despite diplomatic chill

SEOUL — Yuuka Hasumi put high school in Japan on hold and flew to South Korea in February to try her chances at becoming a K-pop star, even if that means long hours of vocal and dance training, no privacy, no boyfriend, and even no phone.

Ms. Hasumi, 17, joined Acopia School in Seoul, a prep school offering young Japanese a shot at K-pop stardom, teaching them the dance moves, the songs, and also the language.

She is one of an estimated one million other K-pop star wannabes, from South Korea and abroad, hoping to get a shot at super competitive auditions by major talent agencies that will take on just a select few as “trainees.”

“It is tough,” Ms. Hasumi said in Japanese, drenched in sweat from a dance lesson she attended with 15-year-old friend Yuho Wakamatsu, also from Japan.

“Going through a strict training and taking my skill to a higher level to a perfect stage, I think that’s when it is good to make a debut,” she said.

Ms. Hasumi is one of 500 or so young Japanese who join Acopia each year, paying up to $3,000 a month for training and board.

The school also fixes auditions for its candidates with talent management companies that have been the driving force behind the “Korean-wave” pop culture that exploded onto the world stage in the past decade with acts such as global chart topping boy band BTS.

The influx of Japanese talent that is reshaping the K-pop industry comes at a time of increasingly bitter political acrimony between the two countries that has damaged diplomatic ties.

That the tension has done little to dent the K-pop craze among Japanese youth, and the willingness by Korean agencies to take on Japanese talent, speak to the strength of the ties between their people, according to one long-time observer.

“They’re nuts about BTS over there in Japan,” said Lee Soo-chul, board member of Seoul-Tokyo Forum, a private foundation with members of diplomats and business executives from both countries.

K-pop groups, and veteran Korean musicians, are selling out concert halls throughout Japan, said Lee, a former head of Samsung Group’s Japanese operations. “There is no Korea-Japan animosity there.”

DEEP FREEZE
Tensions rooted in Japan’s 1910-1945 colonization of Korea have risen after South Korean court rulings against Japanese firms for forced labor, and amid a perception in Korea that Japan’s leadership has not adequately atoned for its colonial past.

But the popularity of Korean culture and K-pop music is on the rise in Japan, with many fans and artists saying they are not bothered by the diplomatic tension.

“I might get criticized for being Japanese, but I want to stand on a stage and make (South Koreans) know Japanese can be this cool,” said Rikuya Kawasaki, a 16-year-old Japanese K-pop star hopeful who auditioned unsuccessfully in Tokyo for Acopia School.

For schools and agencies, Japan’s music market — the second largest after the United States and bigger than China — is a big prize and many have been on a campaign to recruit Japanese talent.

“It will be good if Japan and South Korea will get along through music,” Ms. Hasumi told Reuters during a break from her Korean language class.

Some Japanese transplants have already made it big. The three Japanese members of the girl band Twice helped make the group the second most popular act in Japan, after BTS.

Their success has prompted JYP Entertainment, the South Korean agency backing Twice, to plan the launch of an idol group comprising only Japanese girls.

JYP declined to comment for this story.

Agency officials are reluctant to discuss their success in Japan and the infusion of Japanese talent, wary of fueling a politically charged backlash, industry sources said.

HARD ROAD TO STARDOM
There’s no shortage of Japanese hopefuls willing to train under talent agencies’ watchful eye, some having left successful careers back home in search of K-pop fame.

“I’ve heard stories about no free time or not being able to do what I want. But, I think all of K-pop stars who are now performing have gone down the same road,” said Nao Niitsu, a 19-year-old college freshman from Tokyo.

During a visit to Seoul paid for by her mother, herself a die-hard BTS fan, Ms. Niitsu auditioned for 10 agencies and was accepted by five.

Debut is elusive, unlike in Japan where it is easier for idols to get a start and then can hone their skills and work on their appeal with the fans.

Miyu Takeuchi said it wasn’t a difficult decision to leave a 10-year career with a top idol band AKB48 back home in Japan to sign with the K-pop agency Mystic Entertainment in March as a trainee.

Even with her experience, she has seven hours of vocal training a day and two-hour dance lessons twice a week, plus early morning Korean lessons.

She is not allowed to have a boyfriend but she says she has no regrets, despite the fact there is no guarantee she will make it.

“I don’t know how long my training period will be, but it has to reach a point where my coaches and management company say ‘Miyu, you are a professional!’” — Reuters

Films on the impact of technology on modern life to be screened

A COLLECTION of animated science fiction films which focus on the impact of technology on modern life and its political and ideological concerns is featured this month at the De La Salle-College of Saint Benilde (DLS-CSB) Museum of Contemporary Art and Design.

Discover the movie Gandahar, on how the inhabitants in a distant planet living in peace and harmony are attacked by bizarre, man-machine enemies who capture civilians and take them through a portal encased in metal to be brainwashed. The film is scheduled to be shown on May 10 and 11,

Based on the beloved Edwin Abbott novel Flatlands: A Romance of Many Dimensions, which features a world of only two dimensions in which triangles, squares, pentagons and other figures live and move freely, Flatland: The Movie takes on race, gender, class, and political corruption. It will be shown on May 17 and 18.

A sci-fi thriller set 400 years in the future, Aeon Flux feaures a mysterious expertly trained assassin working for the Monicans, a group of rebels who believe in freedom who are trying to overthrow the oppressive government and fight in the name of the disappeared. Aeon Flux will be shown on May 24 and 25.

The film screenings are free and open to the public.

The films will be screened on Fridays and Sundays from noon to 3 p.m. at the Mini Green Room at the 10th Floor of DLS-CSB School of Design and Arts Campus, 950 Pablo Ocampo (Vito Cruz) St., Malate, Manila.

For inquiries and reservation, call 230-5100 local 3897 or e-mail at mcad@benilde.edu.ph.

Bloomberry, ICTSI face headwinds — Razon

Contecon Guayaquil SA (CGSA) is International Container Terminal Services Inc.’s largest concession in Latin America. — COMPANY HANDOUT

THE founder of Bloomberry Resorts Corp. and International Container Terminal Services, Inc. (ICTSI), the Philippines’ best-performing stocks this year, said key parts of his businesses are facing headwinds.

Bloomberry will post “low double-digit” growth rates in terms of visitors and volume, Philippine billionaire Enrique Razon said in a Bloomberg Television interview on the sidelines of the Milken Institute global conference in Beverly Hills, California.

In 2018, profit at the nation’s largest casino operator rose 18% to a record P7.19 billion ($139 million) as visitors at its Solaire casino in Manila increased 14% to 6.65 million.

The same is true for his port business. Mr. Razon said volume handled by International Container, which operates ports in two dozen countries, posted a low single-digit growth in the first four months of 2019.

“It seems that there’s a slowdown across-the-board,” Mr. Razon said in the interview, citing volume in its ports in the Middle East, Latin America and Asia. “We have pockets of risks wherever you are, and we are in 24 countries. But the overall risk is the global economy.”

Investment opportunities that offer the most potential are ports and infrastructure, specifically power and water, Mr. Razon said, citing his latest ventures in the Philippines and Iraq.

Shares of Bloomberry have rallied more than 35% this year, while ICTSI has jumped 27% as record 2018 earnings at both companies boosted investors’ appetites. These two shares lead gains in the Philippine Stock Exchange Index, which advanced 6.5% since end-2018.

While most of its VIP clients are from China, Bloomberry expects to see faster growth of between 20 and 30% in mass market visitors from the mainland. Philippine consumers are doing “quite well, based on the mass gaming market, and that will drive the business going forward,” he said.

Bloomberry will break ground on its second Philippine casino as early as July, with the facility located 20 kilometers north of Solaire focusing on mass gaming.

ICTSI posted a 6% growth in volume in 2018 that lifted its profit to a record $221.5 million. Its ports face mixed fortunes this year, according to Mr. Razon. Ports in Mexico and Africa are showing growth, while the Philippines and Asia are expanding at low single digits and most of Latin America have slowed down.

Nevertheless, new ports opened by ICTSI are “providing stronger growth than what global trade reflects,” Mr. Razon said. ICTSI will absorb “little damage” should Sudan cancel its contract to operate the nation’s port, and intends to recover the company’s upfront payment. — Bloomberg

Netflix signs deal for Thai cave rescue miniseries

BANGKOK — Netflix, Inc. is teaming up with the company behind the hit movie Crazy Rich Asians to produce a miniseries about the perilous rescue of 12 young soccer players and their coach from a flooded cave in Thailand.

The California-based streaming giant and SK Global Entertainment signed an agreement for the dramatization at the Culture Ministry on Tuesday in Bangkok. Financial details weren’t revealed, though earlier local reports said the soccer team members would each get 3 million baht ($94,000) for the rights.

“The story combines so many unique local and universal themes which connected people from all walks of life, from all around the world,” Erika North, Netflix’s Director of International Originals, said.

“Thailand is a very important market for Netflix and we’re looking forward to bringing this inspiring local, but globally resonant story of overcoming seemingly insurmountable odds to life, once again, for global audiences,” she added.

The Wild Boars soccer team, aged between 11 and 16, and their 25-year-old coach became trapped on June 23, 2018 while exploring the cave complex in the northern province of Chiang Rai when a rainy season downpour flooded the tunnels.

A 17-day effort to rescue them gripped the world with experts from various countries volunteering to help. The international rescue effort using specialist cave divers brought each of them out, one after the other, gripping the world as the drama unfolded over two weeks. A former Thai Navy SEAL died during the operation, which involved navigating narrow, submerged and sometimes pitch-black passageways.

Engineers from billionaire Elon Musk’s rocket firm Space Exploration Technologies Corp. built a high-tech, kid-sized submarine to aid in the rescue, but it ultimately wasn’t needed.

“We look forward to working with all involved parties to ensure our story is told accurately,” assistant coach Ekkapol “Ake” Chantapong said.

The cave rescue miniseries will be directed by Thailand’s Nattawut Poonpiriya and Jon M. Chu, who put together Crazy Rich Asians.

Netflix and SK Global Entertainment secured the rights from the 13 Thamluang, a company established by the boys and their coach.

So far, two books about the rescue have been published while a feature film by British-Thai director Tom Waller, The Cave, wrapped up shooting in December, according to the Hollywood Reporter.

Netflix has about 150 million paid subscribers globally and remains the dominant paid streaming service. The company spent more than $7 billion on programming last year. — Reuters/Bloomberg

URC earnings jump 3% in 1st quarter as domestic sales recover

UNIVERSAL Robina Corp. (URC) reported a three percent increase in attributable profit in the first three months of 2019, as sales volume and average selling prices improved during the period.

In a regulatory filing, the Gokongwei-led food and beverage manufacturer said net income attributable to the parent reached P3.04 billion in the first quarter, following a seven percent uptick in net sales to P33.3 billion.

“We are very pleased with the results especially the stronger top line momentum coming from our businesses in the Philippines. While the environment continues to be very challenging, the transformation plans we have set in place have started to gain traction,” URC President and Chief Executive Officer Irwin C. Lee said in a statement.

“We also expect to hold or slightly improve our operating margins for the year,” Mr. Lee added.

The listed firm’s business is divided into three units, namely branded consumer foods (BCF), agro-industrial group (AIG), and commodities group (CG).

Sales of BCF, which includes both domestic and international products, went up by five percent to P25.7 billion. Its products include Great Taste for coffee, Jack ‘N Jill for snacks, and Nissin for easy-cook noodles, among others.

Domestic revenues alone jumped by 11% to P15.6 billion, thanks to the coffee category which reversed its three-year decline. Overseas, sales dropped by three percent in peso terms to P10.2 billion, mostly due to the foreign exchange devaluation in Australia and New Zealand ranging from 8% to 10%.

For AIG, sales of goods and services rose by 21% to P2.58 billion, driven by the 53% increase in the feeds business due to higher volumes and selling prices. This managed to offset the 14.1% slowdown in farms as volumes fell.

The commodities division, meanwhile, firmed up by 13% to P4.05 billion, driven by flour and pasta sales which grew by 25% on increased volumes. The sugar and renewables unit, meanwhile, posted a 9% jump in its topline because of higher selling prices.

The company noted that its cash balance stood at P10.1 billion by the end of the quarter, while tallying a net debt position of P30.9 billion, attributed to remaining debt from its previous acquisitions.

Mr. Lee also highlighted the company’s sustainability initiatives, which includes reducing the company’s energy, greenhouse gas emission, and water usage by 30%.

URC has also set out to reduce its packaging footprint by making 60% of the company’s packaging recyclable.

Shares in URC jumped 7.68% or P11.70 points to close at P164 each at the stock exchange on Thursday. — Arra B. Francia