FNI eyes nickel resource expansion

August 15, 2024 | 12:03 am

LISTED mining company Global Ferronickel Holdings, Inc. (FNI) said it plans to expand its nickel resources to meet the growing demand from the stainless steel and electric vehicle (EV) sectors.

“Our strategy is to expand our nickel resources to ensure that we have the capacity to meet growing global market demand. This involves other areas in Surigao, Palawan, Northern and Southern Luzon, and the Visayas,” FNI President Dante R. Bravo said during a briefing.

The company is currently conducting exploration and applications to expand its nickel resources in these areas. Nickel is a key component in the production of stainless steel and EV batteries.

“We hope to be able to have a larger resource base in Surigao, then in Palawan, and then in other parts of the country. We believe in the long-term view for nickel,” he added.

FNI has mining operations in Cagdianao, Surigao del Norte, and Brooke’s Point, Palawan.

“We are also actively exploring value-adding opportunities; specifically, we are reassessing the feasibility of a ferronickel processing plant and a battery-grade nickel plant in the Philippines,” Mr. Bravo said.

The company said earlier that it was looking to enhance the value of its nickel products by processing them to cater to the needs of specific industries, like EV batteries.

“Since our government is supporting the mining industry, we look at this value-added processing aspiration happening sooner than expected,” he added.

For the second quarter, FNI reported that its net attributable income inched up by 0.41% to P196.45 million from P195.65 million in the same period last year.

The company’s revenues rose by 25.1% to P2.49 billion for the April-to-June period from P1.99 billion in the same period last year.

FNI shares fell by 1.35% or two centavos to close at P1.46 apiece on Wednesday. — Adrian H. Halili

EastWest Bank sees strong credit card business growth

August 15, 2024 | 12:02 am

EAST WEST Banking Corp. (EastWest Bank) expects its credit card business to grow by double digits this year and continue to increase its market share following a strong first half, it said on Wednesday.

Revenues of the bank’s credit card business grew by 30% year on year to P5.5 billion in the first six months from P4.3 billion, it said in a statement. Its accounts receivables jumped by 35% to P61 billion, while total billings also rose 39% to P52 billion.

The lender’s credit cardholder base expanded by 17% year on year to 1.3 million as of end-June, it said. It expects this number to grow to 1.4 million by yearend.

EastWest Bank Senior Vice President and Credit Cards Business Head Aylwin Herminia P. Tamayo said it expects more young professionals to become financially literate and join the mass and affluent markets, which currently account for 30% and 20% of its consumer group, respectively.

The lender will be rolling out offers to attract this market segment in celebration of its 30^th anniversary, she said.

“This reinforces our commitment to providing personalized and accessible financial solutions which now underpin our consumer lending services,” Ms. Tamayo said.

EastWest Bank booked a net income of P3.5 billion in the first half on the back of consistent core revenue growth from a bigger asset base and higher yields.

Its shares went up by nine centavos or 1% to end at P9.10 each on Wednesday. — AMCS

Paramount begins job cuts, closes TV production studio

August 15, 2024 | 12:02 am

PARAMOUNT Global began laying off staff Tuesday after the entertainment company said last week it planned to slash 15% of its US-based workforce, amounting to roughly 2,000 positions.

As part of the move, management this week will close Paramount Television Studios, one of the company’s production arms. The unit’s shows include Tom Clancy’s Jack Ryan, Reacher, and The Spiderwick Chronicles.

In an internal memo viewed by Bloomberg, the company’s three co-chief executive officers (co-CEOs) told staff on Tuesday that the job cuts would take place in three phases and continue throughout the rest of the year. They expect 90% of the layoffs to be completed by the end of September.

“The industry continues to evolve, and Paramount is at an inflection point where changes must be made to strengthen our business,” the co-CEOs said in the memo.

Paramount’s role in television dates back decades and includes famous acquisitions such as Desilu Productions, the TV business founded by Desi Arnaz and Lucille Ball. The operation became part of CBS when Paramount’s then-parent company, Viacom, split in two in 2005.

The Paramount Television brand was revived in 2013 and produced a number of shows for other outlets, including Apple TV+ and Amazon Prime. All current shows and development projects will transition to the existing CBS Studios production arm, according to the company.

While reporting second-quarter financial results last week, co-CEO Chris McCarthy said that the staff reductions would impact marketing, finance, and other departments. The company also took a second-quarter impairment charge of $5.98 billion on its cable networks, yet another sign of weakness in the traditional TV industry. — Bloomberg

Filipinos prefer preemptive anti-fraud measures when transacting on mobile apps

August 15, 2024 | 12:02 am

ABOUT 88% of Filipinos said they favor preemptive anti-fraud measures when transacting through apps over reimbursement amid rising cyberattacks, according to mobile app security company Appdome.

This was 5% higher than the global average of 84%, according to the firm’s latest 2024 Global Consumer Expectations report, which includes data from 120,000 consumer responses across 12 countries including the Philippines.

“Almost half in the Philippines (45%) experienced fraud themselves or know somebody who’s been a victim of fraud,” Appdome Mobile App Security Evangelist Jan Sysmans told BusinessWorld over a video call on July 26.

Out of the global consumers surveyed, 42.5% have been a victim of a cyberattack, mobile malware, or mobile fraud.

Additionally, 97.5% of surveyed Filipinos said they would want to share positive experiences of a brand that protects them.

“The opportunity for brands in the Philippines is to leverage better security as a differentiator in the marketplace,” he added.

It is cheaper to prevent fraud than to compensate for when fraud happens, Mr. Sysmans noted.

“If they want to shop, put stuff in their shopping cart, but don’t complete the transaction until the consumer verifies that they are indeed who they are,” he said. “So, [it’s about] taking all these steps rather than being too late and reimbursing a consumer for fraud.”

Threats have also been on the rise recently due to the advent of generative artificial intelligence (GenAI), which has lowered the barrier for threat actors to get increasingly more convincing in committing fraud, Mr. Sysmans said.

“It’s very hard for consumers to verify whether a text message, e-mail, or a pop-up window they get on their phone is indeed valid,” he said, adding that fraudsters are becoming more skilled at presenting fraudulent information to a user and tricking them into taking action.

To address this, he said e-commerce platforms in the Philippines need to start looking at AI-based platforms to protect them against GenAI-related fraud. — Aubrey Rose A. Inosante

Energy security and Philippine business, the case for coal power expansion in Cebu

August 15, 2024 | 12:02 am

Last Tuesday, Aug. 13, nine business and professional groups issued a “Joint Statement of Support for the Department of Energy” or DoE. They applauded DoE Secretary Raphael P.M. Lotilla for pursuing a policy of “a balanced energy mix… balanc[ing] energy security and affordability with climate change concerns to support its economic progress…. Energy insecurity is expensive.”

The groups were the Management Association of the Philippines (MAP), the Makati Business Club (MBC), the Employers Confederation of the Philippines (ECOP), the Federation of Philippine Industries (FPI), the Financial Executives Institute of the Philippines (FINEX), the Foundation for Economic Freedom (FEF), the Blockchain Council of the Philippines (BCP), the Fintech Alliance.PH, and the Women’s Business Council Philippines (WomenBiz).

Early this month the Philippine Chamber of Commerce and Industry (PCCI) announced their support of the DoE. See these reports in BusinessWorld: “Charges vs Lotilla have potential to drive investors away, PCCI says” (Aug. 5) and “‘Balanced’ energy mix keeps power affordable — biz groups” (Aug. 13).

Mr. Lotilla has endorsed the expansion of the Therma Visayas, Inc. (TVI) coal plant in Cebu, which will be constructing Unit 3. Last month the People for Power (P4P) coalition filed criminal and administrative cases against the DoE secretary, arguing that the expansion violates the moratorium on new coal projects declared by former DoE Secretary Alfonso Cusi in 2020.

Mr. Lotilla is correct. The 10 business and professional groups that support him are correct. The P4P and allied organizations and ideologues are wrong.

Here are some reasons why this is so (the numbers refer to the period from March to June 2024).

First, the Visayas has the smallest supply margin — supply minus demand minus reserve requirement plus imports from neighbors — compared to the Luzon and Mindanao grids. The Visayas has a margin average of only 144 megawatts/month (MW/month) vs 889 MW/month in Mindanao and 1,838 MW/month in Luzon. The Visayas needs additional capacity to avoid blackouts, like the horrible blackout that befell the four provinces of Panay in early January this year.

Low margins mean high prices. The price of power in the Visayas is higher on average than Luzon prices (by P1.50/kWh) and Mindanao prices (by P2.50/kWh). They need additional capacity to reduce the price.

The Visayas is exporting more power to Luzon (mainly geothermal from Leyte) than it imports, at an average of 149 MW/month. Then the Visayas is sucking extra supply from Mindanao, at an average of 291 MW/month.

Within the Visayas grid, Cebu is exporting power to Negros and Panay islands. That is why prices in the latter two islands are higher than in Cebu. Additional capacity in Cebu will help stabilize the prices in these three islands and sub-grids. Bohol, which mainly imports geothermal power from Leyte, has the highest prices in the Visayas.

Nationwide, coal provides about 62% of total power generation. Including gas and oil, fossil fuels contribute 80% of total electricity while wind and solar combined contribute only 4% of total (see the accompanying table). The share of oil-based plants in the total energy mix was 0.8% in March, 1.9% in April, 2.2% in May, and 1.7% in June.

Those who have deep angst against coal power should go off-grid and use purely solar and/or wind in their houses and offices.

The following officials in Cebu declared the need for additional capacity, baseload, or running new plants 24/7 this year: Cebu Provincial Governor Gwen Garcia (“‘Not in 2027 but now’: Garcia wants power self-sufficient Cebu,” The Freeman/Philstar, Feb. 3; “Cebu must ensure long-term power supply as economy grows,”Cebu Daily News, June 15); Cebu Chamber of Commerce and Industry (CCCI) President Charles Kenneth Co (“Cebu needs more power plants,” The Freeman/Philstar, Jan. 27), Mandaue Chamber of Commerce and Industry President Marc Ynoc and acting Cebu City Mayor Alvin Garcia (“Cebu as next Silicon Valley?: Looming power shortage weakens Cebu’s potential,” The Freeman/Philstar, Aug. 1).

I think that by now the local companies that are funding P4P in their coal-hating, RE- and indigenous gas-pushing campaign are ashamed that many high-profile Philippine business and professional organizations are supporting the DoE, and these pro-DoE groups have an idea who the backers of those ecological bullies are.

I congratulate the MAP, MBC, ECOP, FEF, FINEX, FPI, FinTech, BCP, WomenBiz, and PCCI for standing behind the DoE and Secretary Lotilla.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Robinsons Hotels, Hira Holding to open luxury eco-resort in Siargao by 2026

August 15, 2024 | 12:02 am

ROBINSONS Hotels and Resorts (RHR) and Hira Holdings, Inc. (HHI) said they will open a luxury eco-friendly villa resort in Siargao, targeted to be ready by 2026.

Located in Brgy. Malinao, General Luna, the villa resort will have a total land area of 2,856 square meters, RHR said in a media release on Aug. 13.

RHR said it signed a ten-year management agreement with HHI to bring global hospitality standards with “a unique Filipino heart of service” to Siargao.

RHR has 30 hotels across the country under local hotel brands Go Hotels, Go Hotels Plus, Summit Hotels and Resorts, Grand Summit Hotels, and Fili Hotel.

“We are delighted to have this meaningful partnership with Hira Holdings, Inc., a company that shares the same values as RHR,” said Barun Jolly, senior vice-president and business unit head of Robinsons Hotels and Resorts.

He said the partnership signifies a step forward in expanding its geographic presence while maintaining a commitment to “exceptional service and sustainable practices.”

“We are grateful to RHR for opening this opportunity to us. We are confident in the brands and capacity of Robinsons Hotels, which is why it was easy for us to trust and sign with them for our very first hotel, and we look forward to building more with them in the future,” said Haresh Hiranand, president of Hira Holdings.

“We are confident in the bullish economic projection of the country, and with our expertise in hotel brand development, we would like to enable optimistic investors who want to venture into the hospitality industry as well,” Mr. Jolly added. — Aubrey Rose A. Inosante

AXA Philippines launches equity fund

August 15, 2024 | 12:01 am

PHILIPPINE AXA Life Insurance Corp. (AXA Philippines) has launched an equity fund that allows its clients to invest in selected companies expected to benefit from global economic developments.

“As Filipinos’ partner in their financial wellness journey, we want to ensure they have all the means to safeguard and grow their wealth with peace of mind. We have been in the business of protecting what matters for 25 years in the country, and so it is our priority to secure their legacy for all the succeeding years to come,” AXA Philippines Chief Proposition and Products Office Abel Vergara said in a statement on Wednesday.

“As proof of this commitment, the AXA Global Edge Equity Fund uses a strategy that has a proven track record of investing early in companies positioned for growth, with some investments growing as much as 60 times from the initial year. This alone provides promising longevity or sustained success over time,” he added.

The AXA Global Edge Equity Fund is an expansion of the AXA Asset Master Insurance plan, which guarantees policyholders a life coverage of 125% of the one-time premium or the plan’s account value, whichever is higher.

“The AXA Global Edge Equity Fund via Asset Master aims to provide long-term capital growth by investing in both established and emerging companies with sustainable competitive advantages and solid financials,” AXA Philippines said. “It is also an actively managed fund that undergoes regular asset reviews to achieve sustained growth over time,” it added.

The AXA Global Edge Equity Fund invests in “selected high-potential companies,” it said.

“This strategy has also demonstrated resilience during market fluctuations, consistently outperforming benchmarks,” it added.

AXA Philippines booked a premium income of P21.76 billion and a net income of P2.73 billion in 2023. — AMCS

AI companies lose bid to dismiss parts of visual artists’ copyright case

August 15, 2024 | 12:01 am

A GROUP of visual artists can continue to pursue some claims that Stability AI, Midjourney, DeviantArt, and Runway AI’s artificial intelligence (AI)-based image generation systems infringe their copyrights, a California federal judge ruled on Monday.

US District Judge William Orrick said the artists plausibly argued that the companies violate their rights by illegally storing their works on their systems. Mr. Orrick also refused to dismiss related trademark-law claims, though he threw out others accusing the companies of unjust enrichment, breach of contract and breaking a separate US copyright law.

The decision did not address the artists’ core claim that the alleged misuse of their work to train AI systems directly infringes their copyrights, or the key defense that AI companies make fair use of copyrighted material.

A spokesperson for Stability and an attorney for Midjourney declined to comment on the decision on Tuesday. Spokespeople and attorneys for the other companies did not immediately respond to requests for comment.

The artists’ attorneys Joseph Saveri and Matthew Butterick said in a statement on Tuesday that the decision was “a significant step forward for the case.”

Illustrators Sarah Andersen, Kelly McKernan, and Karla Ortiz initially sued the companies last January in one of the first of several high-stakes lawsuits against tech companies over the use of copyrighted work in AI training. Mr. Orrick had dismissed many of their allegations in October but allowed them to be refiled.

Ms. Andersen, Ms. McKernan, Ms. Ortiz and seven other artists brought an amended complaint in November. They argued that Stability’s Stable Diffusion model, utilized by all of the companies, unlawfully contains “compressed copies” of their works used to train it.

Mr. Orrick said in a tentative ruling in May that he was inclined to let the copyright allegations continue. He elaborated on Monday that the companies could not dismiss the claims at an early stage of the case.

“The plausible inferences at this juncture are that Stable Diffusion by operation by end users creates copyright infringement and was created to facilitate that infringement by design,” Mr. Orrick said. — Reuters

OPPO Philippines set to launch ‘more accessible’ AI-powered smartphone Reno12 F 5G next week

August 15, 2024 | 12:01 am

OPPO Philippines is set to launch the OPPO Reno12 F 5G in the country on Aug. 20, it said on Wednesday.

The brand is rolling out the latest device in the OPPO Reno12 Series as a “more accessible” artificial intelligence (AI)-powered smartphone option, it said in a statement.

“Following the footsteps of the OPPO Reno12 Series 5G, the latest addition to the Reno Series also packs intuitive AI features that can unlock Filipinos’ creativity, imagination, and productivity in their everyday lives,” OPPO Philippines said.

The OPPO Reno12 F 5G has a 50-megapixel (MP) flagship level main camera, as well as a 2-MP macro lens and a 112-degree 8-MP ultra-wide camera. It also features a 32-MP selfie lens.

“As the more accessible OPPO AI smartphone, the OPPO Reno12 F 5G is packed by AI imaging features such as the upgraded AI Eraser 2.0, which now has a “Remove People” capability for easier and faster removal of photobombers and AI Studio, a pre-installed app that lets you transform any photo of yourself into your own digital avatar,” it added.

The phone also comes with the AI LinkBoost proprietary communication technology developed by OPPO.

“Further boosting the OPPO Reno12 F 5G is BeaconLink, which enhances Bluetooth uplink capabilities by 300%, enabling device-to-device voice calls over Bluetooth at a distance of up to 200 meters in a completely disconnected environment,” OPPO Philippines added.

The phone has a Smart Adaptive Screen with a 120Hz refresh rate, which can reach up to 2,100 nits of local peak brightness and an overall peak brightness of 1,200 nits. It also comes with OPPO’s Holo Audio feature for a dynamic and spatial audio environment.

The OPPO Reno12 F 5G features the brand’s All-Round Armor structure and Splash Touch technology with an all-new Cosmos Ring Design and Halo Light inspired by classic wristwatches.

The phone comes in Amber Orange and Olive Green colorways.

Luxury and bargain hunting

August 15, 2024 | 12:01 am

IT’S NOT ONLY compulsive shoppers who get high on the phrases “outlet mall” and “online shopping.” Bargain hunting is a sport that delights even the conservative acquirer of goods. Its logic is simple — if you can get the same goods and services at a lower price than usual, let me know where I should shop.

Differentiated pricing of the same (or almost the same) service has been a long-standing tradition in the airline industry which introduced three (and sometimes even more) price classes for first, business, and economy. While the cheap category is sometimes given fancy names like “world class traveler” or “sardine,” the first two are unabashedly descriptive of their target niches.

Bargain hunters argue that the price premium is a waste of money. You’re in the same plane, headed for the same destination, so why pay more to have leg room and panna cotta for dessert? Of course, those behind the curtain consider themselves in a different place — where sleeping is possible, unless there are crying babies nearby.

The bargain hunter, say for a hotel room, argues that a room is just a room. Isn’t it just for storage of luggage and crashing? Why pay for the view of the sunrise over the water, a bathtub, and breakfast buffet? You can still walk to the same white beach and watch dolphins if you wake up early. Anyway, how long do you stay in your room? It’s just for sleeping.

The other end of this bargain hunting culture aims to flaunt wealth. (If you’ve got it, show it.) Bragging rights drive politicians, successful boxers, and the new rich from online gaming to go for status symbols and splurge on high-end cars, luxury watches (with their auction price) that don’t track blood pressure, celebrity mistresses, and mansions overlooking golf courses out of town. They post their luxurious possessions on social media, intending to attract the envy of other social climbers.

Even well-trodden beaches that already offer a full spectrum of experiences and prices need to have pricing differentials to give the bargain hunter a financial incentive. Stations (arbitrarily designated) mark how far one is from the white sands and how isolated or crowded the area is.

On the luxury end are isolated villas with their own infinity pools and breakfast served on a private terrace. From the welcome serenade, garlands of flowers, cold face towels and quick check-in, there is a sense of unaccustomed bliss — who says money can’t buy happiness?

The premium staff combines efficiency and thoughtfulness — do you want to have a bonfire and dinner at the beach? Housekeeping is unobtrusive, making up the bed and laying out the incense while guests are out. You may even get a personal valet to lay out and match clothes or book a table at the beach restaurant for the evening.

The luxury market is available not just in resorts and hotels but in all service categories, including bespoke jeans, fine dining, private banking, travel, and theme parks that offer no-queue passes.

Increasingly, the upper end of the spectrum is catering to senior citizens and retirees. This gray niche can go on a reckless spending spree, heeding the advice of ancients to cash out long-held investments and properties and spend the money on yourselves with sybaritic abandon. Any remaining cash or assets should just about cover the wake.

Can prohibitive luxury goods target the bargain hunters too?

Special promos persevere and have opened traditional luxury services like two-week cruises to the low end of the spectrum by bannering discounts (as much as 75%) for a limited period. Luxury liners don’t want to leave the dock with empty rooms which can never be sold again.

Even in investments like the stock market, the price rally of stocks that have taken a swan dive previously is attributed to “bargain hunting,” referring to now cheaper and undervalued stocks being snapped up by savvy players. When the trend reverses, it is explained as “profit taking.”

Even bargain hunters do not apply their stinting approach to everything they need to buy. It is not a luxury to go for the best available. There is still room for discarding bargain hunting habits for such necessities as healthcare, diets — and a good sleep.

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

AllDay Marts reports 7.7% rise in first-half profit to P185 million

August 15, 2024 | 12:01 am

VILLAR-LED premium segment supermarket operator AllDay Marts, Inc. posted a 7.7% increase in attributable net income for the first half to P185 million from P172 million last year.

Revenue for the January-to-June period rose by 0.8% to P4.9 billion, AllDay said in an e-mailed statement on Wednesday.

Gross profit increased by 2.6% to P1.027 billion, while earnings before interest, taxes, depreciation, and amortization grew by 11.2% to P504 million.

“On the operational side, we looked into every opportunity to increase efficiency. While taking special care to preserve — even improve on — the unique AllDay experience, controlled spending and cost control measures allowed us to deliver even better value to our stakeholders,” AllDay Acting President and Chief Executive Officer Jacqueline B. Cano said.

“Notably, our increased efforts to shore up AllDay’s brand equity through an attractive and comprehensive imported item offering, as well as optimal pricing strategies, are increasingly bearing fruit,” she added.

Based on its website, AllDay has 33 locations across 25 cities and municipalities nationwide. The company offers fresh items, food items, and non-food items, comprising approximately 3,600 local and international brands and about 40,000 different items.

On Wednesday, AllDay shares fell by 1.45% or P0.002 to P0.136 apiece. — Revin Mikhael D. Ochave

Surfshark: Philippines 28^th most breached country in Q2 2024

August 15, 2024 | 12:00 am

The Philippines placed 28^th out of 250 countries and territories with a total of 385,019 breached accounts in the second quarter of the year, latest data from Surfshark’s Data Breach Statistics showed. This was lower by 95% from the ﬁrst quarter of 2024. Among its peers in the East and Southeast Asian region, the Philippines was the eighth-most breached country/territory during the period.