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WB tags better jobs as economy’s ‘missing link’

THE WORLD BANK said that better quality jobs and faster real wage growth are the “missing link” to reducing poverty and inequality in the country, even as the government pursues more aggressive infrastructure development.
“The key challenge facing the government is not unemployment, but rather the poor quality of jobs in the labor market, as a large share of employment opportunities in the Philippines consist of low-paid jobs,” the World Bank said in the Philippine Economic Update report it released on Monday.
The multilateral lender also said that the government should spend more on improving the country’s human capital, complementing state efforts to improve infrastructure.
GROUND FOR FASTER GROWTH
“Really, the push is the emphasis in investment, not only in infrastructure but also really heavily in human capital, expenditures that are going to education, health. So this is really is the foundation for higher growth in the future,” World Bank lead economist for the Philippines Birgit Hansl in a press conference yesterday.
She noted that economic benefits of the current administration’s infrastructure projects won’t be felt until 2020.
The multilateral lender said the country has a lower unemployment rate but high underemployment and slow increase in real wage, which takes into account the impact of inflation.
It explained that this is partly due to agricultural workers’ shift to low-quality, low-skilled jobs in the service sector, as the Philippines has for years failed to improve its manufacturing base that could have provided better jobs, such as in the case of East Asian neighbors.
IMPERATIVE
“So what the Philippines really needs is to attract more investments that lead to jobs and producing higher productivity, so that we see higher real wage increase. That’s why it is really necessary to attract investors from outside and inside for expanded capacity in manufacturing, and invest heavily in human capital to allow people in lower paying jobs to move from sectors like agriculture and low-skilled services to higher, productive jobs that are in high demand,” said Ms. Hansl.
She added that this would help guard the Philippine economy from “overheating,” by which the country fails to sustain its relatively fast economic growth due to poor support from infrastructure and human capital.
“This is what happens when you have high fiscal spending that is pouring into wage growth, causing people to want to spend more,” Ms. Hansl explained.
“Then prices will increase because firms cannot produce more because they have a limited capacity,” she added.
“Even if you would like to produce more, you couldn’t at this point without investing first in new productive capacity or educating more people…” she added.
“This is where the Philippine economy is: where it likes to grow more, but it first needs these investments.”
The Philippine Statistics Authority (PSA) in its January 2018 Labor Force Survey reported that unemployment rate declined to 5.3% from 6.6% in the same survey round last year.
At the same time, however, underemployment rate — which reflects workers who wanted more hours of work or an additional job — increased to 18% from 16.3%.
“The government needs to adopt mutually reinforcing policies that will create a growing middle class that is well-integrated with other income groups. This should include the implementation of interventions across multiple sectors that address both supply- and demand-side constraints for creating more well-paying jobs in the labor market,” the report read.
The World Bank also urged the government to “upgrade value chains to support strong and sustainable growth, and strengthen backward and forward linkages to take advantage of skilled labor and create jobs for the unskilled,” as well as address institutional constraints, strengthen competition, secure property rights, and simplify business regulations.
The lender expects the Philippine economy to sustain 2017’s 6.7% growth in 2018 and 2019, before slightly moderating to 6.6% in 2020. The government, in comparison, targets a 7-8% economic growth rate from 2018 to 2022, while cutting unemployment rate to 3-5% also by then from 5.5% in 2016, and reducing poverty incidence to 14% from 21.6% in 2015. — Elijah J. C. Tubayan

UA&P economist calls for faster GIR hike, downplays overheating fears

THE PHILIPPINES needs to amass bigger foreign currency reserves to keep up with rising demand for dollars, an economist of the University of Asia & the Pacific (UA&P) said, even as he maintained that the economy is far from overheating.
In a 12-page paper, UA&P associate professor Victor A. Abola dismissed concerns that the Philippine economy is near overheating, but flagged the need to boost the central bank’s gross international reserves (GIR) to meet greater liquidity requirements.
In his Recent Economic Indicators study, Mr. Abola compared current indicators in the external sector to levels that triggered the Asian Financial Crisis in 1997, particularly: short-term external debt (or those maturing within the next 12 months) to GIR, the peso-dollar and yen-dollar exchange rates, the share of the current account balance to gross domestic investments and GIR versus money supply.
The study showed that the first four indicators remained “very far” from levels observed 20 years ago, and are also unlikely to breach such thresholds anytime soon.
“[W]e do not see any early warning signals that the Philippine economy is overheating and facing a currency crisis, however that may be defined in the literature,” the UA&P economist said.
Some analysts have recently flagged overheating risks in the face of rapid growth in bank lending, intensifying inflation and fears that key state implementing agencies may not be able to carry out more aggressive spending plans — especially on infrastructure — which would otherwise support economic expansion.
Central bank officials, however, have said the rapid increase in credit simply reflects bigger funding needs for robust domestic economic activity and have assured that inflation should normalize towards yearend.
‘CRISIS AFTER A FEW YEARS’
At the same time, Mr. Abola noted that rising money supply — currency in circulation and bank deposits — could mean stronger demand for dollars that could eventually outpace growth of GIR, which cushions the country from external financial shocks.
“Nevertheless, at least one indicator is strongly telling our policy makers that unless we renew the buildup of our GIR at a pace as fast as (or better yet, faster than) M2 growth, we will end up in a crisis after a few years,” the report read.
“We can readily understand that more money in the economy would translate into more demand for foreign exchange (for capital goods, raw materials, and consumer goods imports). Thus, if M2 rises too fast, leaving GIR far behind, the ratio will rise,” he explained.
“This situation may continue until the ratio reaches a critical level or the country may keep losing GIR to meet the additional demand, in which case the ratio also rises.”
Dollar reserves totalled $80.128 billion in March, marking a third straight month of decline, even as they could still cover 7.8 months worth of import payments — well above the three-month global standard — according to latest central bank data.
STILL ‘VERY COMFORTABLE’
Sought for comment, BSP Deputy Governor Diwa C. Guinigundo maintained that the current GIR stash remains “very comfortable” in terms of import servicing.
“We are no longer in a gold or FX (foreign exchange) reserve regime in which we support our money supply with either gold or FX,” Mr. Guinigundo explained in a mobile phone message.
“The more fundamental issue is whether our liquidity is excessive or not. We argue that it is not excessive — its level is consistent with our price stability objectives.”
He added that the recent cut in required bank reserves already supported liquidity.
“If we buy more FX to increase our reserves level, that means increasing money supply and — all things being equal — could exert additional inflation pressure.”
International reserves consist of gold, the BSP’s assets expressed in foreign currencies, the country’s quota with the International Monetary Fund, and foreign currency deposits held by government and state-run firms. These stand as buffers against external financial shocks and are considered by credit raters as a source of strength for the local economy. — Melissa Luz T. Lopez

MWC to take P60-M hit from Boracay closure

By Victor V. Saulon, Sub-Editor
MANILA WATER Co., Inc. (MWC) expects to take a hit of around P60 million to P70 million when Boracay is closed to visitors for six months starting on April 26, but the Ayala-led firm is looking at opportunities in the island, including a waste-to-energy project.
Ferdinand M. dela Cruz, MWC president and chief executive officer, said the company derives around P142 million annually from its operations in Boracay. The bulk or 70% of Boracay’s water consumption comes from tourists, and the rest from residents.
“So if you project six months and then take a hit there, it could be a range… It could be anywhere from half that if it is all zero or a little higher, so about half to about 60%. So that would be the range of hit,” he said in a press conference after the company’s annual stockholders meeting on Monday.
“So you’re looking at about P60-70 million, which we have to cover from other businesses. By and large, it’s something that’s not very very big for the enterprise to take a hit,” Mr. Dela Cruz added.
Boracay Island Water Co., Inc. is a joint venture between Manila Water and the government’s Tourism Infrastructure and Enterprise Zone Authority (TIEZA). Boracay Water holds a 25-year concession to serve potable water and operate the sewerage system.
In 2017, Boracay Water recorded a billed volume of 5.5 million cubic meters (mcm), up 13% from 4.9 mcm in 2016. This compares with the 488.4 mcm for Manila Water’s concession in Metro Manila, which grew by 2% from 478.9 mcm in 2016.
Mr. Dela Cruz said Manila Water has a pipeline of projects whether with local government units (LGUs) or business-to-business potential partners, which span across the Philippines and the Association of Southeast Asian Nations (ASEAN).
“These are business development timelines, so we’ll see which ones will develop,” he said, adding that one of the projects that the company is looking at is waste-to-energy.
Geodino V. Carpio, MWC chief operating officer, said the company’s innovations unit Manila Water Total Solutions Corp. has team that is working full time to look for opportunities in the “nexus of wastewater, solid waste and energy.”
“For Boracay, we can do as much as 1 megawatt (MW),” he said. “Sludge contains a lot of capability to release gases which are combustible and could be harnessed to generate energy. That same process of harnessing energy from sludge could also be used for organic solid waste.”
BORACAY PROJECT
Mr. Carpio said MWC had been awarded the first proponent status in Boracay for a proposal to develop a waste-to-energy facility.
“We are awaiting approval from the board of the Boracay LGU and find out what happens after that,” he said. “If we get approval then it goes to the PPP (public-private partnership) process of challenging, and hopefully after the challenging we get the project and we can start the project within the year. So it’s all up to the Boracay LGU at this point.”
During the press conference, Mr. Carpio also addressed claims by Maynilad Water Services, Inc. that despite their discussions along with state agency Metropolitan Waterworks and Sewerage System last Friday, the amount of raw water that was entering Maynilad’s La Mesa treatment plants was still less than what it was entitled to receive.
“We’ve been very quiet about this issue because we were exercising a lot of corporate decency and sobriety about it,” he said.
Mr. Carpio explained there is a common purpose facility (CPF) comprised of managers from both Maynilad and Manila Water that coordinates a 60-40 split of the raw water allocation in favor of Maynilad.
“The splitting process is not an exact thing. It’s like steering a boat, you can oversteer or understeer. So at any point, Maynilad may be getting more or getting less. We only speak of averages throughout the day,” he said.
He said historically for the past 20 years, Maynilad had been getting on average more than 60% of its share. Thus, he said Manila Water was surprised when the other company announced water interruptions spanning from Valenzuela City up north down to Cavite City.
“On average from March 25 to April 10, we got 41.54% and they got 58.46%,” he said, calling it a variance that should not be enough to cause the widespread water interruption.
He said the two companies continue to hold discussions on the issue.

Puregold earns P5.84B in 2017

By Arra B. Francia, Reporter
EARNINGS of Puregold Price Club, Inc. grew by 5.7% in 2017, backed by a double-digit increase in sales from its chain of supermarkets across the country.
In a disclosure to the stock exchange on Monday, Puregold said net income last year stood at P5.84 billion, higher than the P5.53 billion it generated in 2016.
Strong consumer demand at Puregold supermarkets, S&R Membership warehouse clubs, and S&R New York Style Pizza stores boosted the company’s consolidated sales for 2017, which rose 10.6% to P124 billion during the year.
This translated to consolidated net margins of 4.7% in 2017.
Same store sales grew by 4.4% and 6.5% from Puregold stores and S&R stores, respectively. Puregold said these figures are “better than expected… driven by the strong consumer demand and the sustained economic growth of the country.”
Same store sales refer to revenues generated from existing stores that have been open for more than one year.
The Lucio L. Co-led firm ended 2017 with a total of 372 stores across the country, 309 of which are Puregold stores, 14 S&R membership shopping warehouses, 32 S&R New York Style QSR, nine NE Bodega Supermarkets, and eight Budgetlane Supermarkets.
The company will continue its store expansion this year with plans to put up 25 new Puregold stores as well as two S&R warehouses. It has yet to disclose the locations of these new stores, but openings in 2017 indicate that the firm is gearing toward expansion outside Luzon and into new geographic areas.
Last year, Puregold also merged with a number of provincial retail firms to expand its footprint in the provinces.
Puregold earlier noted that 2018 will be an “exciting year,” given the passage of the first package of the Tax Reform for Acceleration and Inclusion law, which is seen to drive consumer spending given their higher disposable income.
Incorporated in 1998, Puregold engages in the trading of goods, primarily consumer products such as canned goods, housewares, toiletries, dry goods, food products, pharmaceuticals, and medical goods on a wholesale and retail basis.
Puregold operates in several retail formats, including Puregold Price Club for both retail customers and resellers; Puregold Junior, its neighborhood store format, and Puregold Extra, which are smaller stores offering a more limited choice of goods.
Shares in Puregold dropped 80 centavos or 1.52% to close at P51.95 apiece at the Philippine Stock Exchange on Monday.

Singer Zsa Zsa Padilla marks a major milestone


TO celebrate having spent 35 years in show business, singer Zsa Zsa Padilla is set to stage a concert titled The Best Day of My Life, on May 11. The concert will also be held in celebration of Mother’s Day — which falls on May 13 — and Ms. Padilla’s upcoming birthday on May 28.
“We want to make it special. We feel that 35 years is worth celebrating,” Ms. Padilla said.
Paolo Valenciano, the concert’s director, said at a press conference on April 12 that the show’s repertoire is built around what Ms. Padilla wants to communicate to her fans.
“I just felt that if we could build on the things that she told us (at meetings), I feel that it is something that would communicate and entertain her fans a lot,” he said.
The concert’s repertoire will highlight old hits popularized by the singer.
The multi-awarded singer/songwriter began her career as a member of the “Manila Sound” band Hotdog in the mid-1970s. She then pursued a solo career in 1982.
Ms. Padilla’s notable works include the gold-platinum album Ikaw Lamang (1985), the quadruple platinum album Zsa Zsa (1998), the platinum album Sentiments (1999), and gold album Unchanging Love (2009).
Ms. Padilla will be sharing the stage with her daughters Zia Quizon (her daughter with her long-time partner, the late comedian Rodolfo “Dolphy” Vera Quizon, Sr.) and Karylle Tatlonghari-Yuzon (her daughter with her former husband Modesto Tatlonghari), while long-time industry friends Homer Flores and Noel Ferrer will be working with the singer off-stage as musical director and writer, respectively. The concert’s guests include Sponge Cola vocalist Yael Yuzon and Robin Nievera.
“Not a lot of people get the chance to work with their parents, and not a lot of singers get to sing with their parents. I’d like to consider myself lucky. It’s an interesting experience. In life, I learn a lot from her, seeing how she does it (performing) through example,” Ms. Quizon said of performing with her mother.
Asked about her further plans as a performer, Ms. Padillla said: “At this point in my life, I’m already just looking to celebrate a few milestones, and be more at ease with my career because I’m happier where I am,” she told BusinessWorld.
Zsa Zsa Padilla: The Best Day of My Life, presented by RWM in cooperation with Ultimate Shows, Inc., will be held on May 11, 8 p.m., at the Newport Performing Arts Theater, Resorts World Manila, Newport Blvd., Newport City, Pasay City. Tickets are now available at the RWM box office, ground floor of the Newport Mall in RWM, and all TicketWorld outlets. — Michelle Anne P. Soliman

PLDT starts unloading Rocket stake

PLDT, Inc. has started unloading its shares in German e-commerce investor Rocket Internet AG, as part of its plan to fund its massive capital expenditure program this year.
In a statement, PLDT said its indirect subsidiary PLDT Online Investments Pte. Ltd. has committed sell at least 6.8 million Rocket Internet shares back to the German company. This represents around 67.4% of the Rocket shares held by PLDT Online.
Rocket Internet earlier announced the buyback of up to 15.47 million shares through a public share purchase offer at €24 per share.
PLDT stands to get around €163.2 million or around P10.51 billion from the deal.
“The final number of PLDT Online tendered shares accepted by Rocket will be determined after the offer period which is expected to end on 2nd May 2018. If greater than 15,472,912 Rocket shares are tendered, the Rocket shares to be sold by PLDT Online will be reduced proportionally,” PLDT said in a statement.
In February, PLDT Chairman, President, and CEO Manuel V. Pangilinan said the company may sell its position in Rocket to fund its capex, which is expected to stay above P50 billion for this year.
To recall, PLDT invested €333 million (around $362 million) for a 10% stake in Rocket in August 2014. In October 2014, Rocket Internet went public, which effectively diluted PLDT’s stake, which now stands at 6.1%.
However, the Rocket investment proved disappointing, as its startups recorded heavy losses.
PLDT is set to expand its fixed and mobile networks as part of its five-year P260-billion capital expenditure (capex) program.
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.
Shares in PLDT were down 2.04% or P30 to close at P1,440 apiece on Monday. — Patrizia Paola C. Marcelo

Beyonce throws Coachella homecoming with Destiny’s Child reunion

INDIO, UNITED STATES — Beyonce returned spectacularly to the stage Saturday with a joyous, homecoming-themed party at the Coachella festival where she delighted fans with a rare reunion of her former trio Destiny’s Child.
Before a sea of some 100,000 people in the southern California desert, the pop superstar headlined the second night of the premier global music festival, ending a year-long hiatus from live music as she gave birth to twins.
Beyonce showed no sign of slowing down after her maternity leave, singing and strutting her stuff with little break for two hours as she led around 100 back-up dancers and musicians.
Her husband, rap mogul Jay-Z, popped up on stage toward the end of her set to join in their song “Deja Vu.” But he turned out to be only a preview of a less routine guest appearance.
With an audio recording of novelist Chimamanda Ngozi Adichie’s essay “We Should All Be Feminists” allowing Beyonce a moment to prepare, she re-emerged being elevated to the stage in an unmistakable silhouette of three figures.
Fellow Destiny’s Child members Kelly Rowland and Michelle Williams joined Beyonce for three of the trio’s songs, including “Say My Name.”
It was their first reunion since Beyonce’s Super Bowl halftime show in 2013. The group propelled Beyonce to stardom but was also beset by internal friction.
On Saturday, Beyonce referred to her bandmates as her “sisters” — and was also joined on stage by her real sister, Solange Knowles.
Beyonce made clear from the start that Coachella was about reuniting, with an announcer starting the show by welcoming guests to her “homecoming.”
A school’s worth of brass and string players played from stadium-style stands as Beyonce entered to a New Orleans-style march. She sported an all-American outfit of tight jean shorts and a collegiate sweatshirt — the Greek letters, of course, starting with “B.”
After revving up the crowd with fireworks and the boisterous “Crazy in Love,” Beyonce offered a take on “Lift Every Voice and Sing,” the unofficial African American national anthem.
Beyonce voiced pride that she was the first black woman to headline Coachella. She is one of the few women to top the bill of any major festival, a sign of lingering male dominance of the music industry.
Coachella takes place over two consecutive weekends with identical lineups.
Next weekend, Beyonce may want to check her shoes — after changing into a racier bodysuit, she appeared to hold herself back at moments for fear of dancing her feet out of her boots.
PROTEST BY BYRNE
While Beyonce went light on the politics, New Wave pioneer David Byrne of Talking Heads fame delivered a forceful statement against racism as he covered Janelle Monae’s protest anthem “Hell You Talmbout.”
Set only to percussion, Byrne updated the song about African Americans fatally shot by police or in other racially charged incidents.
Reciting each name, from Emmett Till who was lynched in 1955 to Stephon Clark who was shot dead by police last month in California’s state capital Sacramento when holding his cell phone, Byrne’s band implored the crowd, “Say his name!”
The track belied the tone of Byrne’s set, which was infused with his signature sly irony. Barefoot in a gray suit, Byrne opened sitting in a school desk and holding a brain, which he serenaded with “Here,” a track about neuroscience off his new album American Utopia.
Byrne, in what he has described as his most ambitious stage project since Talking Heads, designed a strikingly sleek space with chain curtains delineating a clear floor and his 11-piece band, dressed identically to him, all wireless.
Dancing first with mime-like body thrusts, with Byrne throwing his hands forward as if off-kilter on the Talking Heads classic “Same As It Ever Was,” the band took the shape of a campfire party as the sun set on the palm trees behind them.
The band took turns playing solos that showed the scope of Byrne’s global influences, from Latin-inspired bongo drums to a Middle Eastern-tinged whammy bar session on guitar by Byrne himself. — AFP

SSI merges 2 units to improve efficiencies

SSI GROUP, Inc. will be merging two of its wholly owned units to improve operational efficiencies within the company.
In a disclosure to the stock exchange on Monday, the Tantoco-led firm said its board of directors has approved the merger of Luxury Concepts, Inc. and Casual Clothing Retailers, Inc. (CCRI).
CCRI will be the surviving entity after the merger, which will be subjected to the approval of the Securities and Exchange Commission.
“The merger is being undertaken in order to streamline SSI’s corporate structure and is expected to result in increased efficiencies,” the company said.
SSI noted that the merger will not affect the day-to-day operations of both firms.
The listed firm is currently undertaking a rationalization program that seeks to improve the overall sales quality and operating efficiency of its store network.
International luxury brands under SSI’s portfolio include Hermes, Gucci, Salvatore Ferragamo, Givenchy, Jimmy Choo, Michael Kors, Prada, Ralph Lauren, and Kate Spade.
It also distributes clothing brands such as Lacoste, Zara, Old Navy, Gap and Banana Republic.
SSI dropped 70 stores in 2017, ending the year with a total of 638 stores covering 129,486 square meters. It also gave up eight brands during the period, while adding Estee Lauder and Good Eats, for a total of 108 brands in its portfolio, from 114 brands in 2016.
The company also exited the convenience store business last year, selling its stake in Philippine FamilyMart CVS, Inc. to focus on its core specialty retailing business.
The rationalization program allowed SSI to book a net income of P275 million in 2017, 19% higher than the P232 million it generated in 2016, and a reversal of the 71% profit decline it saw in 2016.
Net sales, meanwhile, were flat at P18.5 billion for the period, which the company said it still better than expected with the presence of a highly competitive environment, the weakening peso against the dollar, and the 6.7% decrease in the company’s total selling area.
In addition to brick and mortar stores, SSI also operates six e-commerce websites, amely payless.ph, lacoste.com.ph, beautybar.com.ph, superga.ph, 158db.com.ph, and ssilife.com.ph.
This serves as the company’s response to the impacts of e-commerce on traditional retailers, as shown by recent store closures and bankruptcy filings by major retailers in the United States.
Shares in SSI went down by a centavo or 0.39% to close at P2.58 each at the Philippine Stock Exchange on Monday. — Arra B. Francia

Bon Jovi, Nina Simone enter Rock and Roll Hall of Fame

NEW YORK — Bon Jovi, the Moody Blues, Dire Straits, the Cars, Nina Simone, and Sister Rosetta Tharpe joined music royalty on Saturday as they were inducted into the Rock and Roll Hall of Fame.
Richie Sambora, the original guitarist for arena-packing rockers Bon Jovi reunited with the band for a rousing set at the Public Auditorium in Cleveland that included hits “You Give Love a Bad Name” and “It’s My Life.”
R&B-infused progressive rockers the Moody Blues took the stage to perform “Your Wildest Dreams,” while New Wave pop songwriters the Cars played “Just What I Needed.”
Soul legend Nina Simone and Sister Rosetta Tharpe, the gospel inspiration for early rockers, both of whom were posthumously inducted, and British rockers Dire Straits rounded out the 2018 Hall of Fame class.
The shrine to rock culture surveyed some 1,000 historians and music industry players to select the new inductees.
Bon Jovi, the hard rockers from New Jersey led by namesake Jon Bon Jovi, came out on top in a survey that drew 6.8 million fans, whose preferences were taken into account to give an extra vote to five acts.
With a string of quickly memorable hits such as “Livin’ on a Prayer” and “Wanted Dead or Alive,” Bon Jovi became kings in the 1980s, packing arenas on their exhaustive tours full of pyrotechnics.
Simone, who won induction on her first nomination, was widely considered one of the most influential singers of the 20th century who brought the sensibilities of classical music to gospel and jazz.
Raised in segregated North Carolina, Simone became a passionate advocate for racial equality, with her best-known song perhaps the civil rights anthem “To Be Young, Gifted and Black.” She died in self-exile in France in 2003.
Tharpe, who died in 1973, was chosen for her early influence on rock.
With her confident stage presence and distortion on her guitar, Tharpe took gospel music to new audiences in the 1930s and 1940s, helping set the stage for rock ‘n’ roll after World War II.
Dire Straits, led by Mark Knopfler, emerged from Britain’s so-called pub rock scene of the 1970s, which emphasized blues roots and no-frills musicianship in an era of angry punks and flamboyant glam bands.
In its citation, the Hall of Fame credited the London band with its revival of Americana, saying, “Dire Straits dragged rock kicking and screaming back to its gritty, country roots using beefy guitar licks and bluesy vocals.”
The Cars, led by Ric Ocasek, went in a different direction, bringing the quirky electronic effects of New Wave to classically structured pop songs, generating a string of hits such as “You Might Think,” “Shake It Up,” and “Drive.”
The Moody Blues started in R&B but shifted gears sharply with 1967’s concept album Days of Future Passed. With its incorporation of classical music, the album helped create progressive rock, with its more ambitious structures. — AFP

Xurpas profit plunges 61% to P103M

XURPAS, INC. posted a 61% drop in net income in 2017, amid record revenues that breached the P2-billion mark in the same period.
In a regulatory filing, the listed technology firm said it booked a net income of P102.57 million last year, falling from the P264.84 million recorded in 2016.
The decline in earnings was primarily due to slower revenues from Art of Click Pte. Ltd. (AOC), as the company noted that the unit’s clients were mostly venture-capital funded firms that had no regular full-year advertising campaign.
Xurpas also posted P121.7 million in impairment losses from AOC, coming from bad accounts and “adverse” digital advertising marketing conditions. The firm said it will be implementing a recovery plan that seeks to improve AOC’s client mix in the future.
“Our focus for the year 2018 is to move forward from the setbacks of last year, by strengthening our top-line growth while rebuilding profitability,” Xurpas Chairman and Chief Executive Officer Nico Jose S. Nolledo said in a statement.
Xurpas reported revenues gained 8% to P2.1 billion, the bulk of which came from the mobile consumer services segment. The unit recorded P1.44 billion in revenues in 2017, up 16% year on year.
“The increase was attributed to the growth from the mobile games business and the accretive value of the acquisition of AOC in 2017,” the company said.
Revenues from mobile platform solutions to corporate and government clients, among others, meanwhile, declined by 13% to P566 million for the year.
The company’s other services, which includes those related to its proprietary platform called Flex Benefits System and Ace, recorded an 84% revenue increase for the year. Xurpas explained that these platforms allow employees to convert their employee benefits to other benefits, such as sale of goods.
“We remain committed to building our consumer and HR technology platforms since we believe these hold the keys to our sustained growth,” Mr. Nolledo said.
Xurpas’ HR technologies service currently has a user base of around 68,000 client employees. The company seeks to further grow this segment through its existing platforms, complemented by a new employee communications platform co-developed with its Hong Kong-based HR technologies affiliate MicroBenefits.
Shares in Xurpas gained 11 centavos or 3.23% to close at P3.52 each at the Philippine Stock Exchange on Monday. — Arra B. Francia

Century Properties Group’s profit drops by 11%

CENTURY Properties Group, Inc. (CPG) saw its profit fall by 10.59% in 2017, in line with its diversification into the affordable housing market in recent years.
The Antonio-led property developer reported a P649.9-million net income last year, lower than the P726.9 million it delivered in 2016, according to a regulatory filing on Monday.
“Our financial results came in as an expected consequence of the early stages of our diversification plan. It was, however, a critical strategy to minimize risk and generate growth moving forward,” CPG Director for Investor Relations Kristina Lowella I. Garcia said in a statement.
The listed firm known for its development of high-rise luxury projects ventured into the affordable housing market last year, as it aimed to meet the housing backlog in the country amid a growing middle class.
CPG then partnered with Mitsubishi Corp. for the development of PHirst Park Homes Tanza in Tanza, Cavite, a 26-hectare project offering 3,000 units priced between P1 million to P3 million each. The company expects to complete 420 of these housing units by the end of this year.
This diversification program further allowed the company to enter into leisure and tourism developments and into leasing properties.
“It has been our top priority to drive growth through the diversification of our business. Our strategic decision to invest in allied real estate segments with potential high return opportunities has positioned us well for the coming years,” Ms. Garcia said.
With this, revenues grew by 7.66% to P6.04 billion, following the increase in real estate sales, higher leasing revenues, and property management fees.
Real estate sales accounted for majority of CPG’s revenues, which stood at P5.35 billion, higher by 7.6% year on year.
“The increase in real estate sales is attributable to the increase in selling price of the units among projects and additional projects with recognized revenue in both condominium and affordable projects during the year,” the company said.
The company’s leasing revenues picked up 1.13% to P341.17 million last year. CPG credited the increase to the 96.3% occupancy rate in Century City Mall in 2017, compared to 95.5% in 2016.
CPG expects revenues from leasing units to increase five-fold to P1.5 billion by 2020, as it expands its gross floor area to 302,000 square meters (sq.m.) from the current 133,000 sq.m.
Property management feels likewise rose 16.84% to P353 million, as the company managed additional properties.
CPG said it spent a total of P6.76 billion in capital expenditures last year.
Shares in CPG went down by a centavo or 2% to close at 49 centavos apiece at the stock exchange on Monday. — Arra B. Francia

A fun time was had by all

By Susan Claire Agbayani
Concert
Under the Glow
of the Satellite
featuring <S>andwich
April 13
Metrotent, Metrowalk
Commercial Complex,
Meralco Ave., Pasig City

<S>ANDWICH — the band — may have entered a bit late into what is perhaps the second golden age in the music scene, but that’s fine, as it may have worked to the band’s advantage. Definitely, the members — Myrene Academia, bass; Mike Dizon, drums; Raimund Marasigan, Diego Castillo and Marc Abaya (who was later replaced by Mong Alcaraz), guitarists — have learned many lessons from their respective bands, both previous and current.

The band’s first big hit was “Butterfly Carnival,” made at that time when Mr. Abaya was still the vocalist. Somewhere along the way, Abaya dropped out and Mr. Marasigan — one of the band’s guitarists, and co-vocalist — stepped up and brought the band to even greater heights with hits like “DVDX,” “Betamax,” and “Sugod” among others.
Long-time friends of the band members as well as its fans highly anticipated the band’s 20th anniversary concert, Under the Glow of the Satellite, at the Metrotent of Metrowalk. One of them was Teeth bassist Pedz Narvaja, who also is a childhood friend of Mr. Dizon.
“I’ve known Mike since we were kids and have been band mates (at Teeth) for more than 20 years. Same goes for Diego and the rest of Sandwich, whom I have known since the 1990s. I have made it a point to see them live from time to time, and I was very excited to see what they had planned for their anniversary concert. I’d been looking forward to it since I heard about its inception,” Mr. Narvaja said via Facebook Messenger.
“I was lucky to have been in a very good spot (center stage, near the front; with this writer) when Sandwich dramatically started the show,” said fashion designer and musician Kate Torralba, who has been based in London as a performer for many years now.
Among those who performed as front acts during the concert were She’s Only Sixteen, Ciudad, and Autotelic.
Stereodeal frontman Adrian Arcega, who is also a music video director (Itchyworms’ “Sisikat Muli Ang Araw”), was at Sandwich’s very first gig at the Gonzaga Auditorium of Ateneo in February 1998, and at the anniversary show.
“From the very beginning, it was a good show, with the lights, with the graphics.” said Mr. Arcega of the anniversary concert. Speaking in a mix of Filipino and English he said: “[It’s as though they were saying] this is Sandwich, it’s gonna be an awesome show. I like the fact there was a dual stage setup. People thought it was just a big stage. It turns out that their encore was at… the stage used by the front acts. The audience was closer to the band. Basically you are going back to your roots. And you’re one with the people now.
“I spoke with Direk Juno (Oebanda) after the show. It turned out that that was the idea. It worked. That was so good. Although it was lounder, the sound was clearer at the main stage, compared with small stage at the back,” Mr. Arcega told BusinessWorld at Route 196, a day after the concert.
Couple Ayer and Jane Arguelles left their two children at home for what to them was an ideal “date.”
“Bawat gig nila — Saguijo man ’yan o UP Fair, o mall show — laging 115% as Raimund puts it (Every gig they do, whether at Saguijo or the UP Fair or a mall show, they always give it 115% as Raimund puts it). And that’s one of the things that I love about them. Laging (it is always) performance level par excellence,” Mr. Arguelles — a poet and a Literature professor at De La Salle University — said at Starbucks Metrowalk after the show. Another couple who had a date at the concert were freelance illustrator/graphic designer Cynthia Bauzon-Arre and her husband Arnold.
“The show took me back to 1998/1999. I loved that they played songs from the first two albums (which aren’t on Spotify yet!). It felt nostalgic hearing them again, singing along, and it’s wonderful to see the new generation of musicians and listeners appreciating their music. They have such a distinct sound which is a sum of their experiences; can’t really find anyone that comes close. They’ve evolved yet they remain fresh and relevant!” Ms. Arre remarked via Facebook Messenger.
“Raims (Marasigan) for me, is ever the seducer: when he sings ‘lahat ng hinahanap nyo, lahat ay nandito,’ (everything you are looking for, everything is here) he’s asking me to let go, let loose, and join them in the music, in their intensity, and, yes, joy. Because I always see it in their performances: their joy in playing their music in the stage, with and for the crowd. And when they work their magic on you, you’ll feel this: ‘unti-unting bumibilis, mga kamay namamawis. Nauubusan ng lakas, paano kaya maliligtas?’ (slowly it is getting faster, hands get sweaty, losing strength, how will he be saved?) But [there is] no saving from falling for their spell. At least for me,” Ms. Arguelles, a senior sales manager at Savoy Hotel Manila, added.
The anniversary concert was quite long. But nobody minded. Mr. Arcega noted the diversity of the song choices, how there was a song from every era of Sandwich.
“Arnold and I had fun singing along to fave songs ‘Procrastinator,’ ‘Sunburn,’ ‘Masilungan’; was nostalgic hearing ‘Sakyan’ and ‘Freestyle Analog” and of course, we enjoyed seeing Raym’s stage dive!,” said Ms. Arre.
“I’m (a) superfan of Sandwich. Sandwich doesn’t disappoint; never disappoints,” Mr. Arguelles said.
Perhaps, there’s nothing like affirmation from fellow musicians, and this is what they had to say:

“I must say that they’ve exceeded all my expectations. What I witnessed last April 13 was one for the books. Looking forward to what <S> will come up with next!” remarked Mr. Narvaja.

“That was definitely a dream concert: for the band, the concert director, and the fans. It was emotional, glorious, euphoric. I felt so lucky to be there. So proud of my talented friends!!!” said Ms. Torralba.
Arcega noted that the band performed the concert continuously, and then “’Nung natapos na. Tapos na. Walang big big goodbye. So everybody was saying, whatttt? Tapos na? Kaya sabi ng iba, bitin, (When it ended, it ended. There was no big big goodbye… It’s over? That is why some said it left them hanging),” a sentiment Ms. Arguelles shares.
“Bitin ako sa concert only because I didn’t realize that two hours had already passed. And that it was already an encore when they moved to the ‘underground’ stage for another set,” said Ms. Arguelles.
“Sayang lang (It’s a pity) Marc didn’t guest. That would have been real fun.”
Yeah.

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