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Evasco to file failure of election petition in Bohol, accuses proclaimed winner Yap of vote-buying

LEONCIO B. Evasco, Jr., who lost his bid for the governor’s seat in Bohol by 2,161 votes based on 100% of election returns transmitted, is filing a petition for a failure of elections declaration in the province as he accused the winning candidate, incumbent Rep. Arthur C. Yap, of massive vote-buying. In a statement on Wednesday afternoon, Mr. Evasco, a close ally and former Cabinet secretary of President Rodrigo R. Duterte, said that during the campaign period, “I was already swamped by reports of vote-buying employed by the camp of Cong. Arthur Yap in nearly all towns of the Province including Tagbilaran City.” He described is as the “worst province-wide vote-buying operation never seen in Bohol before.” Mr. Evasco acknowledged that the petition may be denied by the Commission on Elections (Comelec), but he said, “The more important consideration is that all those who joined me in this journey will avail of the last one legal option to right an infirmed election. Until such time that this legal remedy is denied, the fight is not over.” On the other hand, Mr. Yap, who was proclaimed by the Comelec on Thursday morning, said in a statement on Wednesday afternoon, “The people have spoken. I have won this election.” — with a report from Carmelito Q. Francisco

Political rivals Catamco, Taliño-Mendoza to lead Cotabato

COTABATO 2nd District Rep. Nancy A. Catamco won her bid as provincial governor, beating four others, including her number one opponent, Rogelio T. Taliño, the incumbent mayor of Carmen town. On the other hand, Mr. Taliño’s eldest daughter, outgoing Gov. Emmylou Taliño-Mendoza, won as vice-governor. The camps of Ms. Catamco of the ruling party PDP-Laban and the Taliños under the Nacionalista Party (NP) were engaged in a fierce campaign with allegations of vote-buying and other anomalies. Ms. Catamco was proclaimed on Thursday morning with 272,249 votes against Mr. Taliño’s 268,718, along with her party-mate Krista Piñol-Solis, daughter of former governor and now Agriculture Secretary Emmanuel F. Piñol, as provincial board member for the 2nd District. Also proclaimed were the three congressional representatives for the province: Joel Sacdalan (PDP-Laban), incumbent Makilala Mayor Rudy S. Caoagdan (NP), and reelectionist Jose “Pingping” I. Tejada (NP).

PHL-China ‘medical diplomacy’ comes to Davao City

MEDICAL EXPERTS of the Sino-Philippines Asia Peace Awards Foundation have donated various equipment to the Davao City Health Office and the private Brokenshire Memorial Hospital as part of what it calls “medical diplomacy” initiatives. The donations were turned over Wednesday during a Philippine Medical Association gathering in the city led Chairperson Billy Chan and Dr. Manson Fok of Macau University of Science and Technology. A delegation of medical experts from Anhui Province, the home province of Chinese President Xi Jinping, together with the Macau University of Science and Technology also shared proficiencies to Davao participants. “The purpose of Sino Asia is to gather medical experts and any experts on trade and commerce, technology for them to learn and replicate what they learned in their areas,” said Dr. Marilou Monteverde, forum convenor. — Maya M. Padillo

Nation at a Glance — (05/17/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (05/17/19)

How SSI secured deal for Shake Shack franchise

SHAKE SHACK is officially opening today its first Philippine branch in the heart of Bonifacio Global City (BGC), a long way from its start as a hotdog cart in a New York City park 15 years ago.

Randy Garutti, chief executive officer of Shake Shack, said the Philippine store will be the 225thShake Shack in the world.

“(In 2004) we were just trying to raise money for a park. We never dreamed there would be a second Shake Shack. I certainly never dreamed I’d be sitting here with you in Manila today,” he said during a roundtable interview at the Shake Shack in Central Square, Bonifacio High Street.

SSI Group, Inc., a listed specialty retailer whose portfolio includes Hermes, Gucci, Zara and Old Navy, secured the deal to finally bring the popular burger chain to the country. Its unit Specialty Food Retailers, Inc. holds the exclusive franchise for Shake Shack in the Philippines.

Mr. Garutti said he first met SSI President Anton T. Huang in 2013, but at that time the company was not ready to expand in the Philippines.

“We were a much smaller company then. We were probably not ready to come (here). There’s a lot of work that goes in building an international supply chain to make sure this burger taste the same. I don’t think we were ready to do it at that time,” he said.

But Mr. Huang continued to meet with Mr. Garutti throughout the years, and finally his persistence paid off.

“Whenever we look to grow, what matters most to us is the partnership, integrity and opportunity that we have together with the partner. We found that with Anton and SSI.
For us, it’s always about partners that share the same beliefs and ethos of how to take care of people, build a great brand, and build something really special,” he said.

Mr. Huang always believed Shake Shack is a brand and concept that would be a hit with Filipino consumers.

“I think the market is ready, the local customers are extremely excited as we have been seeing on social media… Who doesn’t know Shake Shack? Randy and his team have built a great brand. They’re known for the consistency of their quality and taste throughout all their Shacks worldwide,” the SSI president said.

The Manila menu features classics such as the ShackBurger, Shack-cago Dog, crinkle-cut fries, and custard ice cream. The main ingredients for the buns, custard, fries, and Angus beef are sourced internationally.

Mr. Garutti already tried the burgers at the Manila branch, saying it tastes exactly like the ones in New York.
“Remember, this is not fastfood, every time you order, we cook the burger, spin the shake by hand to order… We’re a fine casual (restaurant), not fastfood. That’s the difference. It’s still a cheeseburger, but it’s really good and the best ingredients,” he said.

Shake Shack has also worked with local producers on Manila-exclusive items. For the Shack Attack concrete, chocolate brownies from local bakery Bucky’s and Auro are mixed in.
Prices start at P250 for a ShackBurger and P190 for an Ube Shake.

“Our philosophy as a whole for Shake Shack is we should price the way we need to price, as opposed to this is the cost and this is the business. As Randy pointed out, we need to build the community… We want to be a Shack for everyone,” Mr. Huang said.

Asked when Shake Shack will open more stores, Mr. Huang said the company wants to focus on ensuring the first branch serves its customers well and meets their expectations.
“Once we’ve done… then we will look at expansion opportunities. As I’m sure you can sense, with the kind of demand for Shake Shack in the Philippines, I think the expansion opportunities are endless. We really have to select properly in terms of how we expand deliberately,” he said.

For Mr. Garutti, there’s no rush to open more Shake Shacks. In fact, after the Manila store, there are no plans to open other Shacks in Southeast Asia.

“If we do our job starting tomorrow, one burger at a time and people love what we do, it will give us the opportunity we hope to expand but today we are focused on this team, the guests, and doing it that well. We have to do it so good every day, one burger at a time,” Mr. Garutti said.

New narratives: How Wattpad is disrupting the multimedia industry

People always need of entertainment. Whether it’s a good book, a favorite series, or a  blockbuster movie, we crave consumable content. And with the swelling audiences around digital media, the platforms through which we consume that content are growing by the day. What’s in short supply, however, are original stories.

Streaming platform Netflix expects the demand for their Originals to overtake that of licensed titles. Their $12.04 billion production spend last year is projected to increase to $15 billion, with Netflix continuing to loan money to keep up with the demand.

With an audience that’s getting hungrier by the second, where can multimedia industry pull material that’s both audience- and investment-friendly? Wattpad, a Toronto-based multi-platform entertainment company, bets that they have the solution.

A treasure trove of content

Founded in 2006 by former engineers Allen Lau and Ivan Yuen, Wattpad started out as an online publishing platform where writers could post their works and interact with readers. As more and more content was uploaded, the team dreamt of expanding into other industries.

“Wattpad was very small at that time, so we didn’t have the scale or resources to do it,” said Allen Lau, co-founder and CEO of Wattpad. The first opportunity came knocking in 2014 when Filipino channel TV5 proposed to co-create a TV series. Through Wattpad Presents, an anthology of some of the best stories on the platform, the company learned more about the entertainment industry, eventually branching out to various media.  

Last April, Wattpad launched Bliss Books with Anvil Publishing which caters to young adults. They’ve also published the most popular titles on the platform with Summit Media, Gallery Books, and Random House, among others.

Some of these stories even crossed over to television or film. She’s Dating the Gangster by Bianca Bernardino became a blockbuster movie starring Kathryn Bernardo and Daniel Padilla. After by Anna Tood was optioned by CalMaple Media and Offspring Entertainment into a full-length feature. And the Netflix-produced The Kissing Booth, written by Beth Reekles, became the most rewatched film on the service in 2018.

Throwing tech into the mix

One could argue that cross-platform adaptations have long been part of the multimedia industry. But what’s interesting with Wattpad is that they combine technology and human ability in their adaptation process.

It starts with Story DNA, their machine learning technology that analyzes both story content and reader behavior. This helps them pinpoint parts of a story that resonate with the audience. So in coordinating with the editor or screenwriter, Wattpad can suggest keeping a certain portion of a chapter or to remove a character because of the readers’ comments.

This data is further reviewed by a team to determine if the material is suitable for the required media format. And since many of the stories have cultural nuances, the diverse staff — at least half comprised of women, persons of color, and bilinguists — ensures that the content isn’t lost in translation.

With this combination, publishers and production companies are assured that they’ll be hitting the right notes with audiences.

“If you look at the traditional entertainment industry, 2 people may make a hundred-million dollar budget decision because they love the story, but there’s nothing to back this up,” said Lau. “But now, the stor[ies] that we pick… [are] loved by a million people. Story DNA analyzed the content and a human from outside made sure that [these are] right. That’s how we can improve the quality and success rate of the movie, TV show, or book.”

Breaking down barriers

For Lau, his firm’s greatest achievements aren’t the advances in machine learning and editing workflows — it’s Wattpad’s vibrant community. Writers and readers regularly connect with each other, creating what he calls a constant feedback loop. “The engagement increases… and so, as a reader, I feel like I invested in the story as well… In some cases, both the writers and the readers feel like they can shape the story together.”

And they’re able to amplify these voices from all over the world, resulting in an exchange that removes geographic barriers and brings out local cultures. Singaporean company MediaCorp, for example, adapts Singaporean-targeted content, but this isn’t limited to stories written within their country. If your story exemplifies Singaporean culture, it’s a candidate even if you live in another continent.

After all, it’s how the story resonates to its audience that truly matters. “If the story is relevant to local people, who cares where it’s coming from?”

PHL returns to ‘panda’ bond mart

THE PHILIPPINES returned to China’s bond market on Wednesday after more than a year, offering 2.5 billion renminbi ($363.3 million) in three-year papers amid perceived strong investor demand.

Following the regular Treasury bond auction, Deputy Treasurer Erwin D. Sta. Ana told reporters: “… today we are returning to the panda market.”

“We are pricing, as we speak, the 2.5 billion RMB issue… this is going to be through an auction process, and as we speak the auction is ongoing in Beijing,” Mr. Sta. Ana said, adding that the issue should have been priced by 2:30 p.m.

“I cannot speak yet because I don’t see the book personally, but I’ve been hearing encouraging news about how the book is turning out.”

There was no update from the Bureau of the Treasury as of early Wednesday evening. The three-year debt papers will be settled on Monday, May 20.

The latest “panda” debt sale would be bigger than the 1.46-billion RMB ($230 million) bonds sold by the Philippines in March last year in its first bond offer in China’s market. Those maiden three-year papers fetched a five percent coupon. China-based debt watcher Lianhe Credit Rating Co. Ltd gave the bonds offered last year an “AAA” top rating and stable outlook, citing the “lowest expectation of default risk.”

The Philippines, one of Asia’s most active sovereign bond issuers, plans to borrow P1.189 trillion this year, 75% of which will be sourced domestically while the balance will be from foreign creditors. This will be used to fund a budget deficit programmed at P624.4 billion, equivalent to 3.2% of gross domestic product, and support increased government spending programmed at P3.774 trillion.

Last week, the government raised €750 million in eight-year global bonds with a 0.875% coupon and priced 70 basis points over benchmark. That offer involved the first euro-denominated bonds issued by the Philippines in more than a decade.

In January, the Philippines sold $1.5 billion in 10-year offshore dollar bonds.

The government is also looking at offering “samurai” bonds amounting to $1-1.5 billion in yen equivalent some time next semester, as well as another round of dollar-denominated global bonds. — Karl Angelo N. Vidal

Fitch Solutions cites policy boost, long-term political risk as Duterte consolidates influence on Congress

EMERGING results of the May 13 mid-term elections showing President Rodrigo R. Duterte will likely consolidate his influence on lawmakers, especially those in the Senate, will mean stronger impetus for reform but also carry long-term political risk, Fitch Solutions Macro Research said in a May 14 note e-mailed to journalists on Wednesday.

“Initial results from the May 13 Philippine mid-term elections suggest incumbent President Rodrigo Duterte has further consolidated his power, ahead of the final three years of his presidential term,” read the note, titled: “Philippine Mid-Terms Boost for Duterte.”

Noting that nine of 12 top Senate bets, with 92% of votes counted, were allies of Mr. Duterte, Fitch Solutions said “[t]he strong show of support for Duterte will both give him the confidence and ability to push ahead with his reform program.”

Should final results, expected to be announced on May 19, confirm that Mr. Duterte has consolidated his hold on Congress, Fitch Solutions said it will “revise up the ‘policy-making’ sub-component of our short-term political risk score of 63.1 out of 100 for the Philippines.”

Michael Langham, senior country risk analyst at Fitch Solutions, said in a separate e-mail that “government policy should be more agile in responding to downside risks to growth,” citing in particular remaining tax reforms.

At the same time, however, “reduced opposition within the Senate lowers the potential checks and balances on Duterte’s administration and may, over time, see a decline in our long-term political risk index score of 65.4 out of 100 for the country,” the note read.

“… [A]t Fitch Solutions, we do note that too much fiscal stimulus, particularly populist policies, or reforms that aim to simply boost construction and household consumption as drivers of growth could ultimately destabilize the economy in the longer term,” Mr. Langham wrote.

As of 2:00 p.m., partial, unofficial Senate race results from 98.68% of clustered precincts in the country showed nine out of the top 12 spots occupied by Mr. Duterte’s allies still led by reelectionists Cynthia A. Villar (24,720,986) and Grace Poe-Llamanzares (21,607,707)

Partial, official results from the Commission on Elections as of 9:09 p.m. on May 14, covering 34 out of 167 clustered precincts, reflected overall dominance by Mr. Duterte’s allies, although an opposition bet — reelectionist Paolo Benigno “Bam” A. Aquino IV (2,335,724) — made it to 12th place. The top 12 were led by Ms. Villar (4,092,454) and Ms. Poe-Llamanzares (3,650,288), followed by former special assistant to the President Christopher “Bong” T. Go (3,293,341) and Taguig City 2nd District Rep. Pilar Julianna “Pia” S. Cayetano (3,251,819).

Rounding up the top 12 were former Philippine National Police and Corrections chief Ronald “Bato” M. Dela Rosa (3,128,061), reelectionist Juan Edgardo “Sonny” M. Angara (3,022,995), Ilocos Norte Gov. Maria Imelda Josefa “Imee” R. Marcos (2,850,643), former Metropolitan Manila Development Authority chairman Francis N. Tolentino (2,584,833), former senator and actor Manuel “Lito” M. Lapid (2,520,316), as well as reelectionists Aquilino Martin “Koko” D. Pimentel III (2,439,571), Maria Lourdes “Nancy” S. Binay (2,366,035) and Mr. Aquino. — A. L. Balinbin and V. M. M. Villegas

Cebu Pacific ‘sternly warned’ over spate of flight cancellations

THE CIVIL Aeronautics Board (CAB) will not penalize Cebu Pacific for its spate of flight cancellations in two weeks from end-April to early May, but is requiring the budget carrier to submit a concrete plan of action to prevent recurrence of the problem.

In a May 10 report to the Department of Transportation (DoTr), the CAB said it “is of the impression that there is no basis for the imposition of penalties for now, or at the least, imposing a penalty may be premature at this stage as the event is still unfolding and the objective sought to be achieved by the cancellations is yet to unravel.”

“[T]he Board recommends… that Cebu Pacific be required to submit within 30 days a concrete plan detailing the corrective actions that it is undertaking… and that Cebu Pacific be sternly warned and admonished to exercise such diligence necessary to maintain the stability and reliability of the air transportation service…”

In a statement Wednesday, Transportation Secretary Arthur P. Tugade said: “We are hoping that Cebu Pacific will immediately comply with the order to resolve this issue… [M]oving forward, we aim to have more substantial actions so that our passengers will not have to suffer.”

Cebu Pacific cancelled 172 one-way domestic flights from April 28 to May 10 — equivalent to about 14 out of its 400 flights a day or 3.5% of the daily total.

This move led to a two-part hearing with the CAB on May 2 and 6 during which representatives of the carrier said “adverse operational conditions” that weighed on its on-time performance led to its decision to cancel flights.

Shares of Cebu Pacific operator Cebu Air, Inc. dropped 1.2% to end P82 apiece on Wednesday, in line with a general weakness at the bourse that saw the Philippine Stock Exchange index slash 0.92% to end 7,576.71, although the services sectoral index under which the budget carrier is listed gained 1.6% at closing — making it the only sub-index to go up that day.

In an e-mailed statement, the budget carrier said it will comply with the CAB directive. “We are also reviewing our internal processes and procedure to make every effort to improve our service to our passengers.”

The CAB said in its report that it believes the scale of cancellations by Cebu Pacific is “not extremely high, considering the global ‘tolerance level’ that can go as high as two percent.”

“[I]t is the Board’s position that the scale of the cancellations vis-a-vis the surrounding circumstances are not so massive as to warrant a full-scale investigation,” it said.

“The degree of harm caused by the cancellations of the riding public was deemed to be not severe because most of the passengers were given refunds, rebooked, or given seats in other airlines and given other amenities in accordance with the Air Passenger Bill of Rights, and more.”

The CAB agreed that the reason given by Cebu Pacific for its flight cancellations — to “create space” to achieve better on-time performance — was valid.

“Cebu Pacific is a low-cost carrier, and characteristically maximizes use of its physical assets and human resources more than legacy carriers do… This is the reason why (on-time performance) is very important for low-cost carriers… A low (on-time performance) will mean it is not utilizing its resources properly, and results in added costs,” the regulator said.

It also looked into possible internal reasons that may have caused Cebu Pacific’s low on-time performance, following earlier reports that pointed to manpower issues such as absenteeism and crew poaching.

“As far as crewing is concerned, the CAAP (Civil Aviation Authority of the Philippines) constantly grilled Cebu Pacific about their compliance with CAAP regulations, and the latter consistently affirmed their compliance,” it said.

“[T]he Board seemed to admit that no airline — a low-cost carrier, at that — would in their right mind cancel flights on a whim and deal with the consequences. As stated elsewhere, a plane on the ground means money out of the bank,” it added.

“… [I]t is deemed, especially in the light of mitigating circumstances, that the financial losses incurred by Cebu Pacific arising from flight cancellations, but itself, would serve as an economic disincentive for Cebu Pacific to commit further lapses…” — Denise A. Valdez

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

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