Home Blog Page 1653

Kickstart Ventures to fund up to five startups in 2025

FREEPIK

By Beatriz Marie D. Cruz, Reporter

VENTURE capital Kickstart Ventures, Inc. seeks to fund as many as five startups in the Philippines and overseas this year that focus on artificial intelligence (AI) and cybersecurity.

“We hope to do anywhere between three to five new deals this year,” Joan Yao, vice-president of investments at Kickstart Ventures, told BusinessWorld in a video interview. “We have a fair amount of capital also set aside to continue supporting our existing companies.”

The company closed five deals last year involving startups in e-commerce, retail, AI, cybersecurity and health, she added.

Kickstart Ventures was started in 2012 with a starting fund of $2.5 million (P144.8 million).

Kickstart Ventures seeks to focus on AI startups to help Globe and Ayala Corp. strengthen their capacity to adopt AI, Ms. Yao said. “Some things will stay the same, in that I think AI continues to be an area where there’s a lot of activity, innovation and interest.”

Kickstart Ventures has about 70 companies in its portfolio including Skillshare, edamama, coins.ph, Kumu, Zalora and Pickup Coffee.

“We are both kind of trying to do and invest in new stuff, but will continue to support the existing portfolio so that we can get good outcomes and returns,” Ms. Yao said.

In 2024, the Philippine startup industry saw the emergence of “tech fog,” Kickstart Ventures Vice-President of Investments Mike Maté said. “Things are still a little bit murky, and it’s unclear what’s going to happen in the future.”

“What we’re seeing is a little bit of overpowering the lifting of the previous tech winter,” he said, referring to the slowdown in the tech industry after a period of rapid growth. “Now it’s more of a tech fog.”

“But now, that winter is kind of making way for spring, but it’s more of a fog. In a fog, you know where you’re going but you really can’t see the way.”

To recover from the “tech fog,” the startup industry should to “really go back to fundamentals.” “So for startups, that’s prioritizing unit economics, profitability and de-emphasizing rapid growth that we’ve seen,” Mr. Maté said.

Many startups in Kickstart Ventures’ portfolio have been “reorienting their strategies towards just becoming more profitable and becoming more fundamentally sound.”

Venture capitals have been focusing on startups with quality fundamentals, long cash runway and proven commercial capacity, Mr. Maté said.

Financial inclusion and online-to-offline commerce present opportunities for growth and innovation in the startup industry, Ms. Yao said.

To boost the growth of startups in the Philippines, Kickstart cited the need to improve the ease of doing business, cut red tape, improve digitalization and increase transparency.

Ms. Yao also cited the need for the startup community to work with more academic institutions.

“I think talent comes where there’s opportunity, really it’s about convincing people that there’s opportunity here and that big things can be built.”

Ferronoux announces leadership changes after P297-million share deal

FERRONOUX Holdings, Inc. on Thursday announced a revamp in management after a P297-million share deal with backdoor lister Themis Group Corp.

Michael C. Cosiquien stepped down as chairman, president and director of the listed company, it said in a stock exchange filing. He will be replaced by James G. Lorenzana, who was appointed Ferronoux director and chairman, while Abel M. Almario was named company president.

Mr. Lorenzana is chairman and president of several companies and foundations including Okada Foundation, Inc.

Ferronoux also announced the resignation of Erwin Terrell Y. Sy as director and chief financial officer and treasurer. He will be replaced by Johannes R. Bernabe, a former Philippine Competition Commission commissioner. Michelle Joan G. Tan also resigned as director, to be replaced by Fiorello R. Jose.

The company also announced the resignation of Lavinia C. Empleo-Buctolan as compliance officer, Joan C. Musico as chief information officer and Bryan Joseph Garcia as investor relations officer.

Ferronoux said the leadership changes were approved during a special board meeting on Dec. 27.

Cosiquien-led ISOC Holdings, Inc. recently entered into an agreement to sell all its shares in Ferronoux to Themis Group for P297 million. ISOC sold 133.53 million shares at P2.22 each.

ISOC holds 51% of Ferronoux, which will now issue 80 million common shares to Themis Group via a private placement.

ISOC will hold 39.06% of the total issued and outstanding capital stock of 341.82 million common shares post-subscription of Themis Group.

Ferronoux’s board earlier approved a P4.31-billion property-for-share swap with Eagle 1 Landholdings, Inc. and the issuance of 240 million shares to Themis Group, resulting in changes in control and facilitating a backdoor listing.

The property-for-share swap involved the issuance of up to 918 million common shares at P4.70 each to Eagle 1 Landholdings in exchange for about 9.4 hectares of land adjacent to the Okada integrated casino resort in Parañaque City.

Trading of Ferronoux shares has been suspended since Dec. 19. — Revin Mikhael D. Ochave

NAIA 2024 passenger volume reaches 50M

PHILIPPINE STAR/MIGUEL DE GUZMAN

SAN MIGUEL CORP.-LED New NAIA Infra Corp. logged 50.1 million passengers in 2024, surpassing the pre-pandemic passenger count at Manila’s international airport.

“This growth is a clear sign that confidence in air travel has returned, and it motivates us to work even harder,” New NAIA President Ramon S. Ang said in a statement on Thursday. “Our goal is to ensure that NAIA provides a better experience for everyone — passengers, airlines and partners alike.”

Last year’s passenger tally at the Ninoy Aquino International Airport (NAIA) was 5.08% higher than the previous record in 2019 and 10.43% higher than in 2023, New NAIA said.

NAIA also logged 293,488 flights excluding general aviation, which it said was 4.83% higher than in 2023.

New NAIA also recorded an average on-time performance of 83.36% during the peak travel season from Dec. 30 to Jan.1.  This was the highest on-time performance at the airport since New NAIA assumed operations and management of the airport in September.

Last year’s passenger volume was mainly driven by domestic travel, which rose 7.8% to 24.48 million from a year earlier. International passenger volume increased 14.4% to 21.15 million.

New NAIA took over the operations of NAIA last year after proposing to allot 82.1% of NAIA revenues to the government.

The company said it plans to improve the airport’s infrastructure and streamline operations to accommodate increasing passenger demand. — Ashley Erika O. Jose

MTRCB sets new record for materials reviewed

THE Movie and Television Review and Classification Board (MTRCB) greeted the new year with an announcement that they had reviewed over 267,000 materials in 2024, up from 255,220 in 2023 (a 4.65% increase) and 230,280 in 2022 (a 16% increase).

In a statement sent via e-mail, the board said that the total was made up of 264,424 television programs, 592 films, 549 movie trailers, and 1,525 publicity and optical media materials submitted by producers and networks for classification.

Of the movies reviewed, 30 films were classified as G (suitable for all audiences), 298 were PG (Parental Guidance needed), 251 were R-rated films (for adults only), and 13 were given an X rating (not suitable for public viewing).

“Despite the limitations in manpower and resources, this milestone highlights the Board’s dedication to ensuring the proper classification of media content in a rapidly growing entertainment landscape,” MTRCB said in its statement.

“The increase in the volume of materials reviewed this year reflects our commitment to meet the demands of a growing media landscape, while upholding our responsibility to ensure that content is aligned with the values and sensitivities of Filipino audiences, especially for the children and the youth,” MTRCB Chairperson and Chief Executive Officer Diorella Maria “Lala” Sotto-Antonio was quoted as saying.

The board also said that “all materials are rated according to age-appropriateness,” ensuring that they “respect freedom of expression while upholding viewer protection.”

Some of the materials banned or given an X rating this year were the sex education show Private Convos with Doc Rica, the children’s film comedy Dear Satan, and the forced disappearances documentary Alipato at Muog — the third example being the only decision they agreed to overturn.

The board members of the MTRCB are lawyers Paulino Cases, Jr., Gaby Concepcion, Cesar Pareja, Ricardo Salomon, Jr., and Frances Hellene Abella; retired educator Maria Carmen Musngi; film and TV producers Josefina Annabel Bañaga, Wilma Galvante, Eloisa Matias, and Jerry Talavera; film and TV directors Antonio Reyes and Neal Del Rosario; actors Bobby Andrews, Jan Marini Alano, Mark Anthony Andaya, Luke Mejares, Johnny Revilla, Richard Reynoso, Valmar Sotto, and Almira Muhlach; film and TV editors Manet Dayrit and Katrina Angela Ebarle; advertising expert Angel Jamias; journalist Alfonso “Al” Mendoza; public servants Racquel Maria Cruz and Fernando Prieto; entrepreneurs Cherry Espion, Jose Alberto V, Glenn Patricio, and Federico Moreno; and mental health expert Lillian Ng Gui.

“As we look forward to 2025, we remain dedicated to promoting responsible viewing, strengthening collaboration with our stakeholders and supporting the continued growth and success of the Philippine creative industry,” Ms. Sotto-Antonio said. — B. H. Lacsamana

DigiPlus set for expansion as it bags Brazil gaming license

DIGIPLUS.COM.PH

DIGIPLUS Interactive Corp. is geared for expansion after securing a gaming license in Brazil.

Its unit DigiPlus Brazil Interactive Ltda. received the definitive authority to operate sports betting and other online games from the Brazilian Ministry of Finance’s Secretariat of Awards and Bets, DigiPlus said in a stock exchange filing on Thursday.

The company said only 10% of applicants got the approval from the Brazilian agency.

“Brazil’s dynamic gaming landscape presents a pivotal milestone in DigiPlus’ global journey,” DigiPlus Chairman Eusebio H. Tanco said in a separate statement. “We are bringing not just our innovative platforms and diverse gaming portfolio but also our unwavering commitment to responsible gaming.”

“By combining our proven platforms with localized insights, we are confident in our ability to resonate with Brazilian players and contribute to the country’s thriving i-gaming sector,” he added.

The company earlier cited Brazil’s population of over 200 million and its potential as one of the fastest-growing gaming markets in Latin America as reasons for the expansion.

DigiPlus passed the qualification stage for the federal license on Nov. 21 after filing the application in August.

The license allows the operations of land-based and online sports betting, electronic games, live game studios and other fixed-odds betting activities in Brazil.

The DigiPlus board also approved an initial P660 million to fund the license fees, minimum capitalization, financial reserves and other operational expenses as part of the Brazilian government’s post-qualification process.

For the first nine months of 2024, DigiPlus net income more than quadrupled to P8.75 billion from a year earlier, led by retail games, new product offerings and cost efficiencies. Revenue more than tripled to P51.56 billion.

The company operates products such as BingoPlus, ArenaPlus, PeryaGame, Tongits+ and GameZone.

DigiPlus shares fell 0.18% or five centavos to P27.10 each. — Revin Mikhael D. Ochave

China’s 2024 box office revenue plunges as industry downturn deepens

ONE of the bright spots in China’s 2024 box office was the film YOLO starring Ling Jia, a comedy on how a reclusive woman reconnected with society through boxing.

BEIJING — China’s 2024 box office revenue slumped by almost a quarter from the previous year, official data showed on Wednesday, dealing a blow to a limping domestic industry yet to fully recover from the pandemic.

Box office revenue totaled 42.502 billion yuan ($5.82 billion), according to the China Film Administration. That’s down 22.6% from 54.915 billion yuan in 2023, and 34% lower than the pre-pandemic peak in 2019.

Of that, box office revenue of domestic films totaled 33.439 billion yuan, plunging 27.3% from 46.005 billion yuan in 2023.

Hopes for a post-pandemic uptick in box office revenue for the second year were dashed despite successes including YOLO, a comedy on how a reclusive woman reconnected with society through boxing, and Successor, another comedy, about how a couple hid their wealth from their son to promote character building.

The slump was caused by a mix of factors — a decline in the number of feature films, competition from online offerings including micro dramas and a slowdown in the world’s second-largest economy.

For the whole of 2024, the number of moviegoers in urban theatres totaled 1.01 billion, down from 1.299 billion a year earlier.

A total of 612 feature films were produced last year, down from 792 in 2023.

With the local film industry on a wobbly footing, foreign movies made a comeback.

Hollywood blockbuster Godzilla x Kong: The New Empire and Japanese animated feature The Boy and the Heron made their mark in the top 10, securing the 9th and 10th spots, respectively.

In contrast, the top 10 list of movies by revenue in 2023 was entirely dominated by local titles, according to the state-run Xinhua news agency.

Other foreign successes included Alien: Romulus. The sci-fi horror flick raked in 786 million yuan, making China its biggest global revenue contributor, Xinhua reported.

The decline in Chinese offerings last year reflects ebbing investment and output capacity in an industry still struggling with the aftermath of strict COVID-19 restrictions, which disrupted movie production from 2020 to 2022.

As of 3:30 p.m., box office revenue on New Year’s Day in 2025 was a little over 200 million yuan. That was a far cry from the record 1.53 billion yuan during the previous New Year’s Day holiday, which was two days longer thanks to a weekend. — Reuters

Philippine bourse eyes increased trading this year

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINE Stock Exchange, Inc. (PSE) expects stronger trading and capital-raising activities this year.

“At the PSE, we are always optimistic and hopeful, and this year is no exception,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement on Thursday. “We look forward to a more robust trading year and better capital-raising performance.”

“Our team will continue to work towards ticking off more items in our three-year strategic plan, which are initiatives that will contribute to the development of the local capital market and help us catch up with our peers in the region,” he added.

The PSE earlier said it expects companies to raise P120 billion in capital including from six initial public offerings (IPO) this year. Last year, capital raised on the bourse fell 42% to P82.37 billion from a year earlier.

The market had three IPOs by OceanaGold (Philippines), Inc., Citicore Renewable Energy Corp. and NexGen Energy Corp.

Mr. Monzon earlier said the economic policies of US President-elect Donald J. Trump would likely drive Philippine stocks in 2025.

“One of the investment considerations at this time is the direction of economic policies of the new US administration,” he said. “An outcome favorable to the Philippines may help spur foreign buying and create the market condition listing applicants are waiting for.”

The benchmark PSE index ended 2024 at 6,528.79, 1.2% or 78.75 points higher than its 2023 finish.

On the first trading day of 2025, the PSEi gained 0.33% or 21.60 points to 6,550.39, while the broader all-share index added 0.17% or 6.59 points to 3,755.1. — Revin Mikael D. Ochave

Taiwan board game invites players to imagine Chinese invasion

REUTERS

TAIPEI — A new board game set against the backdrop of armed conflict around Taiwan is set to be released this month, amid renewed threats from Beijing, inviting players to participate in an imaginary Chinese invasion 20 years from now.

China has ramped up military activity close to democratically governed Taiwan in recent years, including massing naval forces around the island this month.

The new game, titled “2045”, tasks gamers with navigating the troubles of war by using colorful action cards, and role-playing characters involved in operations 10 days before a fictional Chinese invasion of Taiwan.

That includes members of Taiwan’s armed forces, Chinese sleeper agents and pro-China politicians working to sabotage the island’s defense, as well as citizens picking up guns to defend their homeland.

China claims Taiwan as its own and has never renounced the use of force to bring the island under its control. Taiwan’s president and his government strongly object to China’s sovereignty claims and say only the island’s people can decide their future.

Taiwanese board game maker Mizo Games started crowdfunding the game in August. Within two-and-a-half-months, the company had received more than T$4 million ($121,966) to fund the project.

“It is not quite peaceful around Taiwan island and the Western Pacific as we speak,” Chang Shao Lian, the founder of Mizo Games told Reuters at his Taipei office.

Mr. Chang said he wanted “players to feel they want to win and think about what they will do to win.”

The game, which is also set to go on sale in the US and Europe later in the year, has been developed at a time when Taiwan officials have intensified preparations for scenarios including a China conflict.

Before the new year, Taiwan’s presidential office held its first “tabletop” exercise involving government agencies beyond the armed forces, simulating a military escalation with China.

The exercise involved scenarios, including the island being “on the verge of conflict,” to test the readiness of government offices and civil society.

Players who participated in a test run of 2045 said they learnt about what might happen in the event of a Chinese invasion and that they hoped the game could help people understand the implications of a war.

“I’m not very knowledgeable on military matters, therefore through this game I learnt about where the army may land and launch an attack,” said Kalin Lai, a 23-year-old who tried out the game.

Mizo has previously created two other Taiwan war-themed board games — one about surviving an air raid in Taipei and the other about a bombing in Kaohsiung during Japan’s colonization of the island between 1895 and 1945. — Reuters

Holiday surge takes toll on platform workers

PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana, Reporter

PLATFORM WORKERS are left grappling with unrelenting schedules during the holidays, facing mounting health risks and enjoying insufficient protections, a delivery rider association said.

Geoffrey P. Labudahon, national coordinator of RIDERS-SENTRO, said the increase in bookings or deliveries is not translating to higher income with delivery fees so low.

“There may be many orders, but the delivery fee is low… For instance, in one delivery job, you might earn around P18 to P25. On a regular day, you might get P38, P30 or P29 for similar jobs… But during times with high delivery volumes, it’s P18, P20 or P25 — many jobs but small fees,” he told BusinessWorld by telephone. 

“This means more work, more gas consumption, but it doesn’t necessarily mean the delivery rider earns significantly more.”

Adding to the financial strain, riders face rising fuel costs and maintenance expenses. Some platforms also fail to provide insurance coverage, leaving riders vulnerable in case of accidents.

The pressure to maximize income during the season leads to excess fatigue among riders, with many working long hours despite illness or adverse weather, Mr. Labudahon said, adding that some of their members have been killed in accidents.

He urged companies to pay fair delivery fees and take out comprehensive insurance for riders.

He also called for improved dialogue between unions and management to address the systemic issues plaguing gig workers.

Fairwork Philippines, an advocacy affiliated with the Oxford Internet Institute and the WZB Berlin Social Science Center, reported that in 2023, the conditions of gig workers at Philippine ride-hailing and delivery platforms have not improved since 2022, citing issues like financial insecurity, safety risks, and limited protections.

According to the 2022 edition of the Fairwork Philippines study, around 500,000 gig workers are employed in the ride-hailing and delivery industries.

However, Fairwork Philippines Co-Investigator Virgel C. Binghay, a professor at the University of the Philippines-Diliman School of Labor and Industrial Relations, noted that the number is hard to validate because workers constantly hop from one job to another.

In a video conference, he urged the Philippine Statistics Authority to start collecting data about the number of gig workers, specifically platform workers.

According to Mr. Binghay, the possible pathways for better working conditions for riders include treating them as regular employees, giving them social security and health insurance coverage.

Another approach could be a “hybrid model” which would classify them as independent contractors while providing some benefits, such as rest days and social protections.

Yet another pathway might be gig worker cooperatives, which could give them more bargaining power.

Mr. Binghay called on companies to better forecast demand to keep an appropriate number of riders available.

“Workforce planning involves studying the ratio and proportion between work demand and the number of workers needed. At the current pace, it seems like no action is being taken in that regard,” he said.

“It’s important to analyze a particular platform’s demand for services. By utilizing historical data and identifying correlations, they can determine the exact number of workers they actually need. One of the current issues is that they are accepting too many workers,” he added.

SC rejects contractor’s demand for additional payment

PHILIPPINE STAR/ EDD GUMBAN

THE SUPREME Court (SC) has dismissed a lawsuit from a contractor that sought payment for additional construction work for the PNOC Shipping and Transport Corp.

In a 16-page decision published last month, the full court affirmed the Commission on Audit’s (CoA) denial of E.L. Saniel Construction’s monetary claim.

The tribunal said the contractor lacked a clear basis for demanding reasonable payment for services rendered outside the contract.

It noted in the cases cited by the contractor, the additional work had received either express approval or implied authorization from the procurer. Neither was present in E.L. Saniel’s case.

The contractor failed to provide evidence of an implied contract with PNOC Shipping for the additional work or tangible benefit from its claimed services, the high court said.

“Evidently, E.L. Saniel unilaterally decided to proceed with the additional works, let alone at 179% more than the original contract price of the riprap project, without notifying [PNOC Shipping],” it added.

E.L. Saniel was awarded a P4.98-million contract in 2010 to rehabilitate its office in Limay, Bataan in northern Philippines and a P1.35-million contract to design and build slope protection. Both had been fully paid.

But it later sought an additional payment of P2.96 million, claiming that the office site’s terrain needed additional work.

PNOC Shipping was dissolved in 2013 after serving as the transport arm of Petron Corp. for three decades. — Chloe Mari A. Hufana

Banks’ NPLs may go down this year on BSP cuts

BW FILE PHOTO

THE NONPERFORMING loans (NPLs) of Philippines banks may decline this year as the central bank continues to cut borrowing costs.

“NPLs will ease as interest rates drop and lower the debt service burden of clients,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

Philippine banks’ NPL ratio rose to an over two-year high of 3.6% in October from 3.47% in September and 3.44% a year ago, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

This was the highest bad loan ratio since 3.75% in May 2022 and matched the 3.6% NPL ratio in June 2022.

Soured loans rose by 1.3% to P524.31 billion in October from P517.45 billion a month earlier. Year on year, bad loans jumped by 16.7% from P449.45 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said banks’ NPLs may go down as loan growth accelerates amid a robust economic outlook.

The total loan portfolio of the banking system stood at P14.55 trillion at end-October, down by 2.4% from P14.9 trillion at end-September but up by 11.3% from P13.07 trillion a year prior.

Meanwhile, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message that NPLs could remain manageable but see a slight uptick this year.

“Banks are expected to expand their consumer loan portfolios as demand for credit grows alongside economic recovery. However, higher exposure to consumer lending typically comes with increased credit risks, particularly in segments such as credit cards, personal loans, and auto loans, where defaults are more likely,” he said.

However, “resilient” corporate borrowers could offset asset quality risks coming from the consumer lending segment, Mr. Rivera said. “Businesses are adjusting to post-pandemic conditions and benefiting from continued infrastructure spending and economic growth.”

The BSP’s gradual easing cycle is also unlikely to significantly ease the debt burdens of those already struggling to repay their loans, he said, even as lower interest rates could provide relief to some borrowers.

“Global uncertainties, including a potential slowdown in major economies and geopolitical risks, could impact employment and income levels, particularly for OFW (overseas Filipino worker)-dependent households, adding stress to their repayment capacity,” Mr. Rivera said.

Despite these concerns, banks are expected to weather asset quality risks, he said.

“Philippine banks have strengthened their risk assessment and loan monitoring capabilities in recent years. Capital adequacy ratios remain strong, and provisions for loan losses are well-positioned to absorb potential increases in NPLs.”

The BSP has cut benchmark interest rates by 25 basis points (bps) since it kicked off its easing cycle in August, bringing its policy rate to 5.75%.

BSP Governor Eli M. Remolona, Jr. last month said that 100 bps worth of cuts this year may be “too much” and that they will likely keep reducing rates in “baby steps” due to inflation concerns. — A.M.C. Sy

Squid Game season 2 tops global charts despite mixed reviews

THE second season of Netflix, Inc.’s blockbuster survival series Squid Game attracted more than 68 million views since its debut on Dec. 26, 2024, topping the company’s streaming charts globally.

The service’s biggest franchise became the most-watched TV show in 92 countries where the US streaming giant operates, Netflix said on its website. It’s also the biggest debut ever for a Netflix original show.

Produced in South Korea, Squid Game was at the center of a massive marketing campaign ahead of the release, with the anticipation that the popular franchise could attract new subscribers all over the world as the first season did in September 2021.

Season 2, however, has drawn mixed reactions from critics and viewers. Some pointed out that the new episodes seemed slow and repetitive compared with the first season.

On the day after its release, shares of related stocks including Artist United, Inc., a film distributor and marketing firm partly owned by the show’s main actor Lee Jung-jae, tanked by about the daily limit of 30% in South Korean trading.

Still, the show is likely to be judged based on viewer data in coming weeks. The first season of Squid Game had generated $900 million in value for Netflix shortly after its debut in 2021, according to internal calculations. Season 2 is set to compete for best TV series at the upcoming Golden Globes.

The third and final season is to be unveiled next year. — Bloomberg