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TikTok Shop powers Mega Prime Foods’ journey to elevate Filipino family meals

In every Filipino kitchen, Mega Prime Foods has been a staple, providing affordable and nutritious products for generations. Through its partnership with TikTok Shop, the brand is elevating this commitment by enhancing its e-commerce presence.

By leveraging TikTok Shop’s ACE Indicator System, which focuses on Assortment, Content, and Empowerment, Mega Prime Foods has been able to expand its reach and elevate its presence in the e-commerce landscape, offering Filipino families greater access to its wide range of products.

Strengthening Brand Presence through TikTok Shop

Since launching on TikTok Shop in 2023, Mega Prime Foods has achieved a 150% increase in product views and a 95% boost in overall engagement through the platform’s integrated tools. With a diverse assortment of affordable, ready-to-cook meals and canned goods, the brand has successfully reached a broader audience. TikTok Shop’s unique ability to merge entertainment with commerce has allowed Mega Prime Foods to engage consumers authentically, transforming ordinary shopping experiences into memorable moments.

“TikTok Shop has been instrumental in helping us expand our product range and reach more Filipino households. With the help of the platform, we’ve been able to align our goals with a focused strategy that combines product variety, engaging content, and continuous improvement,” shared Marvin Tiu Lim, Chief Growth and Development Officer of Mega Prime Foods.

Broadening Product Range and Accessibility for Filipino Families

TikTok Shop’s support has enabled Mega Prime Foods to expand its product line by 20%, with new offerings like premium canned vegetables and ready-to-cook meals catering to the evolving needs of Filipino consumers. The platform has allowed the brand to introduce limited-edition bundles and exclusive offers that have led to a 30% increase in sales during special promotions.

Mega Prime Foods’ ACE strategy emphasized the importance of Assortment, ensuring that new and exciting products are regularly introduced. This has helped families across the Philippines access nutritious meal options without compromising on quality or budget.

Connecting with Consumers through Dynamic Content

Mega Prime Foods’ strategic use of TikTok Shop’s content creation tools has garnered the brand stronger connections with its consumers. Cooking demonstrations, meal prep tutorials, and product showcases led to a 25% rise in interaction rates. In collaboration with local influencers, the brand also created engaging content that resonated with families looking for affordable meal solutions.

“TikTok Shop has empowered us to connect with our customers on a deeper level. The platform’s focus on content creation has allowed us to not only showcase our products but also inspire families to cook nutritious meals together,” added Mr. Tiu Lim.

Leveraging TikTok Shop’s Data Insights for Strategic Growth

By leveraging TikTok Shop’s Empowerment tools and analytics, Mega Prime Foods made data-driven decisions that enhanced its product offerings and marketing strategies. These insights enabled the brand to optimize ad campaigns that resulted in a 40% higher conversion rate and refine product launches to better align with customer preferences.

According to Franco Aligaen, Marketing Lead of TikTok Shop Philippines, “At TikTok Shop, we believe in empowering brands like Mega Prime Foods to flourish in the digital age. We’re proud to have helped them transform how Filipino families experience food, making healthy eating not just affordable, but also fun and interactive.”

Sustaining Growth through Innovation and Consumer Empowerment

Looking ahead, Mega Prime Foods is poised for sustained growth as it continues to harness TikTok Shop’s robust tools and insights. With a focus on expanding its product range and reaching more consumers through engaging content, the brand is determined to uphold its promise of making nutritious, budget-friendly meals accessible to Filipino families.

As Mega Prime Foods continues to innovate and adapt to the evolving digital landscape, its partnership with TikTok Shop remains pivotal. By leveraging its tools and insights, the brand is dedicated to enriching Filipino family dining experiences with affordable and nutritious meal options that resonate with the community.

 


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China-linked hackers stole surveillance data from telecom companies, US says

PHILSTAR FILE PHOTO

WASHINGTON – China-linked hackers have intercepted surveillance data intended for American law enforcement agencies after breaking in to an unspecified number of telecom companies, U.S. authorities said on Wednesday.

The hackers compromised the networks of “multiple telecommunications companies” and stole U.S. customer call records and communications from “a limited number of individuals who are primarily involved in government or political activity,” according to a joint statement released by the FBI and the U.S. cyber watchdog agency CISA.

The two agencies said the hackers also copied “certain information that was subject to U.S. law enforcement requests pursuant to court orders.”

The statement gave few other details and the Cybersecurity and Infrastructure Security Agency did not immediately respond to a request for comment. The FBI declined to comment.

The announcement confirms the broad outlines of previous media reports, especially those in the Wall Street Journal, that Chinese hackers were feared to have opened a back door into the interception systems used by law enforcement to surveil Americans’ telecommunications.

That, combined with reports that Chinese hackers had targeted telephones belonging to then-presidential and vice presidential candidates Donald Trump and JD Vance, along with other senior political figures, raised widespread concern over the security of America’s telecommunications infrastructure.

The matter is already slated for investigation by the Department of Homeland Security’s Cyber Safety Review Board, which was set up to analyze the causes and fallout of major digital security incidents.

The Chinese Embassy in Washington did not immediately return a message seeking comment. Beijing routinely denies U.S. hacking allegations. — Reuters

Marcos says will not block ICC if ex-president Duterte wants to be investigated

MANILA – Philippine President Ferdinand Marcos Jr said on Thursday his government would not block the International Criminal Court (ICC) if former leader Rodrigo Duterte wants to be investigated for alleged crimes against humanity in his anti-drugs crackdown.

The Philippines will not cooperate with the ICC but it has obligations with Interpol, Mr. Marcos told reporters.

“If that’s the wish of (Duterte), we will not block ICC. We will not just cooperate,” Mr. Marcos said. “But if he agrees to be investigated, it is up to him.”

The remarks follow a marathon congressional hearing on Wednesday during which Duterte, president from 2016-2022, refused to apologise for his role in the bloodshed and urged the ICC to start its investigation.

All testimony provided by Mr. Duterte will be assessed to see their legal consequences, Mr. Marcos said.

Mr. Duterte unilaterally withdrew the Philippine as a member of the ICC in 2019 after it announced it had started a preliminary examination into thousands of killings in his anti-narcotics campaign. He questioned its authority to conduct an investigation.

Under Mr. Duterte, police said they killed 6,200 suspected dealers who had resisted arrest during their anti-drug operations.

But human rights groups believe the real toll to be far greater, with thousands more users and peddlers gunned down in mysterious circumstances by unknown assailants.

Authorities at the time said those were vigilante killings and drugs gangs eliminating rivals. Rights groups and some victims accuse police of systematic cover-ups and executions, which they deny. — Reuters

Banks’ bad loan ratio eases in Sept.

BW FILE PHOTO

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE banking system’s gross nonperforming loan (NPL) ratio eased in September, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

The banking industry’s gross NPL ratio slipped to 3.47% in September from the over two-year high of 3.59% in August. However, it was still higher than 3.4% in the same period in 2023.

This was also the lowest NPL ratio in five months or since the 3.45% posted in April.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. These are deemed as risk assets since borrowers are unlikely to pay.

BSP data showed that bad loans inched up by 0.9% to P517.45 billion in September from P512.7 billion in the previous month.

Year on year, soured loans jumped by 16.5% from P444.3 billion.

The total loan portfolio of Philippine banks stood at P14.9 trillion in September, up by 4.2% from P14.3 trillion in August. It also climbed by 14.1% from P13.06 trillion a year earlier.

Past due loans inched up by 0.2% to P632.9 billion in September from P631.4 billion in the prior month. Year on year, past due loans increased by 15% from P549.9 billion.

This brought the past due loan ratio to 4.25% in September, lower than 4.42% in August but above 4.21% a year prior.

Restructured loans went up by 0.5% to P294.5 billion in September from P293.2 billion a month ago. However, it declined by 4.1% from P307.2 billion a year earlier.

Restructured loans accounted for 1.98% of the industry’s total loan portfolio in September, lower than 2.05% in the previous month and 2.35% a year ago.

In September, banks’ loan loss reserves were almost flat (0.07%) at P482.8 billion from P482.5 billion a month prior. Meanwhile, it rose by 4.8% from P460.8 billion year on year.

This brought the loan loss reserve ratio to 3.24%, lower than 3.37% last month and 3.53% in the same month in 2023.

Lenders’ NPL coverage ratio, which gauges the allowance for potential losses due to bad loans, slipped to 93.31% in September from 94.11% in August and 103.71% a year prior.

“Banks’ NPL ratio improved amid faster loan growth in recent months that effectively expanded the denominator and helped ease the NPL ratio mathematically,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The latest data from the BSP showed bank lending grew by 11% year on year to P12.4 trillion in September, its fastest pace in nearly two years or since 13.7% in December 2022.

The NPL ratio could also continue to improve further in the coming months, Mr. Ricafort said.

“The latest RRR (reserve requirement ratio) cuts that effectively infused about P400 billion into the financial system would allow banks to increase their loanable funds that could lead to faster loan growth and would mathematically lead to lower NPL ratio,” he said.

The BSP reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7% from 9.5%, effective on Oct. 25.

Further rate cuts by the US Federal Reserve and Philippine central bank would also lead to more demand for loans, Mr. Ricafort said.

“Thus, banks’ asset quality would still improve in terms of further easing of banks’ NPL ratio, in an environment made more conducive by expected Fed and local policy rate cuts for the coming months,” he added.

Last week, the US central bank reduced its policy rate by a quarter of a percentage point to the 4.5-4.75% range.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) has so far reduced borrowing costs by 50 bps this year since it began its easing cycle in August.

The Monetary Board delivered 25-bp rate cuts at each of its August and October meetings, bringing the key rate to 6%. Its final policy review for the year is scheduled for Dec. 19.

World Bank approves $750-M loan for PHL digital transformation

Teachers check their computers inside a school in Manila, Aug. 14, 2024. — PHILIPPINE STAR/EDD GUMBAN

THE WORLD BANK on Wednesday said it has approved $750 million in financing that will help the Philippines accelerate digital transformation efforts and strengthen its digital economy.

“Digitalization is a transformative force that can drive productivity-led growth and enhance the efficiency of critical services such as transport, healthcare, education, energy, and agriculture in the Philippines,” World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said in a statement on Wednesday.

The second Digital Transformation Development Policy Loan is aimed at helping the Philippine government lower barriers to entry and investment in the broadband sector, as well as promote competition and improve connectivity.

The loan will support government agencies’ efforts to boost efficiency and transparency through digital technologies, as well as measures to expand financial inclusion by promoting secure digital financial services and payments infrastructure.

It also aims to boost trust in the e-commerce sector, as well as expand logistics and improve the Philippines’ competitiveness in the digital sector.

“By leveraging digital platforms, the country can bridge gaps in service delivery, make sure that individuals and firms have access to affordable financial services and digital solutions that meet their needs, and build resilience against future crises and shocks,” Mr. Mustafaoğlu said.

According to the loan document, the project aims to raise the number of households connected to fixed broadband services to 35% in 2026 from 25.6% in 2023.

“A key priority will be to remove the connectivity limitations faced by the 72% of Filipino households that, according to 2023 figures, still have no fixed broadband,” the World Bank said.

The project also aims to increase the number of people using digitally enabled government services through a unified e-government portal or mobile application to 30 million in December 2026 from a zero base in 2022.

It also hopes to increase the number of agencies connected to the web-based portal National Asset Registry System (NARS) to at least five out of 22 agencies by December 2026.

The project also seeks to lower the fraud rates involving the use of digital financial services to 8.24 basis points, and the volume of digital payments over retail payment transactions to 56% in 2026.

“Financial inclusion and digitally enabled services are vital for the growth of micro, small, and medium enterprises, which employ over 60% of the total workforce in the country,” Mr. Mustafaoğlu said.

“Greater access to digital financial services enables such businesses to adopt innovative technologies and automation, thereby boosting their competitiveness and contribution to the economy.”

By 2026, the project seeks to boost the number of e-commerce enterprises to 3.5 million and the share of women-owned businesses that make online transactions to 5.5%.

The project complements ongoing investments in addressing connectivity gaps in remote areas, including through the Philippines Digital Infrastructure Project, which was approved by the World Bank Board on Oct. 10.

Data from the Philippine Statistics Authority showed the digital economy’s share to the country’s gross domestic product (GDP) went down to 8.4% last year from 8.6% in 2022, making it the lowest share to GDP since 2018. — Aubrey Rose A. Inosante

Dennis Uy plans to build $2-B Tech City in Pampanga

DENNIS ANTHONY H. UY

By Justine Irish D. Tabile, Reporter

TECH TYCOON Dennis Anthony H. Uy is set to file with the Philippine Economic Zone Authority (PEZA) this month the application for the development of an information technology (IT) hub, which is envisioned to be the Philippines’ Silicon Valley.

“They are set to file their application with PEZA within the month. That’s a big-ticket investment,” PEZA Director-General Tereso O. Panga told BusinessWorld in a Viber message.

In May, Mr. Panga announced that Mr. Uy, the chief executive officer of Converge Information and Communications Technology Solutions, Inc., proposed to develop a Tech City special economic zone (ecozone) in a 117-hectare land between Mexico and Angeles in Pampanga.

Mr. Panga said the project aims to create an ecosystem for technology, innovation, and tech-related sectors by attracting downstream tech companies.

In a separate interview, Mr. Uy said that he estimates the cost of the Tech City project to come out at around $2 billion.

“The whole project, I think, is easily $2 billion. It is a very big project,” Mr. Uy said in an interview with BusinessWorld.

“[The investment] will cover mostly the infrastructure because you need the buildings, road access, and structures, including the information and communication technology [infrastructure],” he added.

According to the businessman, the masterplan for the Tech City has already been handed over to him. This will allow the company to start ground development for the project.

“I think next year we can start already… we will be able to do the road access, drainage, all these things,” he said.

“We will go out to bring all these tech companies to help… there’s a lot of potential in Taiwan, Korea, and China, and even in Malaysia,” he added.

Despite being a personal venture, he said that Converge will put up a data center and a headquarters in the economic zone to meet internal requirements.

“And then hopefully if we are able to go through with our plans of building up air-traffic controller education there,” he added.

The latest data from PEZA showed there are a total of 427 operating ecozones, or ecozones with at least one existing and operating PEZA-registered business enterprise.

These operating ecozones are home to 4,382 locator companies, PEZA said.

Filipino students show high level of math anxiety — PISA

Students line up to enter Araullo High School in Manila, Jan. 15, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES was among countries with the highest levels of mathematics anxiety among 15-year-old students, according to an international learning assessment by the Organisation for Economic Co-operation and Development (OECD), which flagged growing negative feelings towards the subject from 2012 to 2022.

Experts said the growing mathematics anxiety among Filipino students threatens the country’s manufacturing ambitions, which will rely heavily on engineers.

Results of the fifth edition of the 2022 Programme for International Student Assessment (PISA) also showed the Philippines was among 10 economies with the lowest levels of self-efficacy among students aged 15 years old. 

OECD: Low-performing Filipino students lags in math, reading proficiencyIn a report released on Wednesday, OECD said most education systems that had the lowest levels of self-efficacy also show the highest levels of mathematics anxiety.

These countries include three Southeast Asian countries — Cambodia, the Philippines and Malaysia, and seven Latin American countries — Argentina, Brazil, Chile, Costa Rica, the Dominican Republic, Guatemala and Mexico.

On average, 65% of students among OECD countries worry about getting poor marks in mathematics, 55% feel anxious about failing in mathematics, and 40% of students reported feeling nervous, helpless or anxious while solving mathematics problems or doing homework. 

“These shares were even higher in Brazil, Brunei Darussalam, El Salvador, Indonesia, Malaysia, the Philippines and Thailand,” OECD said, as it noted a sharp rise in mathematics anxiety from 2012 to 2022 in most PISA-participating countries and economies.

In an earlier edition of PISA, 16% of Filipino students attained at least Level 2 proficiency in mathematics, significantly lower than the 69% average across OECD countries.

Almost no Filipino students were top performers in mathematics, meaning that they attained Level 5 or 6 in the PISA mathematics test.

In the latest report, OECD said low math performers or those who perform below Level 2 showed higher levels of mathematics anxiety than skilled students or those who perform at Level 3 or above.

“This suggests that while anxiety is an obstacle to lifelong learning for all learners, it is even more so for those who also struggle with basic skills,” it said.

“Skilled students who have a solid foundation and strong mathematical skills will be able to build on those and be less likely to experience high levels of anxiety about mathematics,” it added.

In the assessment, 39.4% of Filipino participants said they ask questions when they do not understand the math material being taught, lower than the 46.8% global average.

The number of Filipino students who try to connect new material to what they have learned in previous mathematics lessons hit 39.4%, which was also below the global average of 45.6%.

In the assessment, 50.7% of Filipino participants said they ask questions more than half of the time when they do not understand the mathematics material.

About 80% of Filipino students said they wanted to do well in mathematics, slightly lower than the 89.3% global average.

The results also showed that 38.8% of Filipino students said they “do not agree that some people are just not good at mathematics, no matter how hard they study,” higher than the 34.5% average.

“There is no clear association between mathematics performance and knowing what job students want to do in the future,” OECD said. “However, a difference emerges in terms of the type of job students want to do based on their performance.”

It said more skilled performers than low performers expect to do highly paid jobs, noting that the Philippines presented the “widest gap” with 79% of its skilled performers and 32% of its low performers wanting to become managers or professionals.

On average, 48% of skilled performers and 25% of low performers among OECD countries wanted to become a manager or professional.

“Mathematics is crucial for manufacturing since this sector is conducive to scale economies that can be achieved through learning by doing and problem solving, skills that are honed in mathematics,” said Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University. 

“I think the anxiety stems from a lack of preparation and an inability to relate the mathematical problems to their daily life, making mathematics a purely conceptual subject,” he said in a Facebook Messenger chat.

The OECD said the link between anxiety and mathematics can be detrimental to lifelong learning, adding that students who develop negative feelings towards mathematics may be less likely to opt for further education that includes the subject.

“They may avoid reskilling opportunities that involve mathematics as well,” it said.

The OECD said reducing students’ mathematics anxiety is a key policy challenge in improving students’ readiness for life-long learning.

“All major economic sectors will be adversely affected by these results in the long term,” said Emy Ruth S. Gianan, who teaches economics at the Polytechnic University of the Philippines.

In particular, growing mathematics anxiety among students threatens prospects for sectors that demand more technology-driven innovations including agriculture, manufacturing and services sectors, she noted.

The OECD said compared to 2012, students in most PISA-participating countries and economies reported higher levels of mathematics anxiety.

More students also reported feeling helpless doing mathematics problems or homework on average across OECD countries than in 2012.

“On the contrary, there was only a slight increase in students worrying about their marks and no change in the share of students worrying that it would be difficult for them in mathematics classes,” OECD said. “This result is worrying.”

Students are developing increasingly negative attitudes about learning mathematics. This may impact not only their performance but their readiness for lifelong learning. This finding also suggests that young people’s well-being has deteriorated, and policies are needed to support students’ mental health.

Among countries, South Korea showed the biggest improvement, showing an 11-percentage-point drop in shares of students reporting that they felt nervous doing mathematics problems. It was followed by Singapore and Thailand.

In the assessment, 78.3% of 15-year-old students said they “love learning new things in school,” above the global average of 50.1%.

About 70% of students said they wanted schoolwork that is challenging, higher than the 46.9% global average.

The OECD said governments and schools should craft “tailored support” early on to build confidence among students and enable them to develop resilience and adaptability, “which are crucial for academic success and personal well-being.”

It also called for strong teacher-student relationships, which contribute to reducing student anxiety and improving academic outcomes.

“Education systems should focus on equipping students with critical digital literacy skills to help them discern the quality of information and promote responsible online behavior,” it added.

Gov’t to launch ‘GBonds’ on GCash

BW FILE PHOTO

THE Department of Finance said the government is set to launch “GBonds” on electronic wallet platform GCash in December, as it seeks to make investing more accessible.

“For we envision a future where investing in government bonds is no longer a luxury but a new normal for Filipinos — with just a few swipes away and as easy as ordering their favorite food delivery. This empowers our people to effortlessly secure their future, all from the comfort of their homes,” Finance Secretary Ralph G. Recto said in a statement on Wednesday.

He urged GCash, the Philippine Digital Asset Exchange (PDAX), Inc., and regulators to speed up the process of launching GBonds “to bring the government closer to achieving financial inclusion for Filipinos.”

“[A]s we push for greater retail participation and digital transformation, let me assure you that the economic team will continue fostering a stronger economy that provides favorable conditions for growth and investment,” he said.

Currently, GCash has over 94 million registered users.

G-Xchange is the operator of GCash. The parent firm of GCash, Globe Fintech Innovations, Inc., is an affiliate of listed telecommunications company Globe Telecom, Inc.

JG Summit profit falls 39% to P3.1B; CEO optimistic for Q4

JG SUMMIT OLEFINS CORP.

CONGLOMERATE JG Summit Holdings, Inc. saw a 39% drop in third-quarter net income to P3.1 billion, but its president remains optimistic about ending the year on a “good footing.”

“We expect a better fourth quarter to finish the year on a good footing. This will also establish a stronger base as we pursue initiatives to sequentially drive better top line growth and margins across our operating units,” JG Summit President and Chief Executive Officer  (CEO) Lance Y. Gokongwei said in a statement to the stock exchange on Wednesday.

JG Summit’s third-quarter consolidated revenue increased by 1.4% to P89.1 billion from P87.9 billion last year.

“This was caused by larger losses from JG Summit Olefins Corp. (JGSOC) with the prolonged trough in the global petrochemical industry cycle, lower sugar profits from Universal Robina Corp. (URC) due to price corrections and high-priced inventories, and reduced average fares from Cebu Air, Inc. (CEB) to stimulate demand during the typical lean period in Philippine aviation,” the conglomerate said.

Mr. Gokongwei said that most of the conglomerate’s businesses were affected by weaker consumer sentiment that has “dampened demand for products and services.”

“We are seeing the propensity of consumers towards value food and beverage products, the seasonally weaker quarter for travel, and the prolonged industry downcycle for petrochemicals impacting our latest results,” he said.

For the first nine months, JG Summit recorded a 16% increase in net income to P17.9 billion, while core profit rose by 39% to P20.3 billion.

The conglomerate’s top line surged by 10% to P277 billion from P251.3 billion last year on healthy demand for travel and leisure activities, a higher preference for value food and beverage products, and increased utilization rates in the group’s petrochemical plants.

The food segment led by URC recorded an 18% decline in attributable net income to P8 billion due to the discontinuation of its China business and lower foreign exchange gains versus last year.

URC’s top line rose by 1% to P118.9 billion, led by its international operations and the double-digit growth in its ready-to-drink beverage business.

For the real estate and hotels business, Robinsons Land Corp. (RLC) had slower growth in core and net income to P9.3 billion due to the higher share of minority owners in the earnings of subsidiary RL Commercial REIT, Inc.

RLC’s top line expanded by 4% to P29.3 billion, while earnings before interest, taxes, depreciation, and amortization rose by 7% to P17.8 billion.

For the airline business, CEB saw a 33% decline in net profit to P3.4 billion due to higher depreciation and financing costs related to its growing fleet.

Core profit also fell by 32% to P3.2 billion.

Revenue surged by 11% to P74.5 billion amid the 13% increase in passengers flown as of end-September.

The petrochemicals business led by JGSOC widened its net loss to P11.4 billion amid “unfavorable global market conditions.”

Revenues surged 53% from a low base in 2023, carried by “higher plant run rates along with the full adoption of the pricing tool from its business-wide transformation program.”

Meanwhile, JG Summit’s equity share in Manila Electric Co.’s nine-month net income rose by 19% to P8.7 billion on record high sales volumes plus higher contributions from its power generation and retail electricity supply businesses.

For Singapore Land Group (SLG), JG Summit’s nine-month results account for the first-half performance only, given SLG’s semiannual regulatory reporting frequency. Equity earnings from SLG rose by 15% to P1.3 billion on a stronger hotel business and higher rental income.

Dividends received by JG Summit from PLDT Inc. slipped by 11% to P2.3 billion due to the absence of the special dividends declared in 2023.

JG Summit received P373 million in cash dividends from the Bank of the Philippine Islands (BPI) given the effectivity of the BPI and Robinsons Bank merger earlier in the year.

On Wednesday, JG Summit shares fell by 3.23% or 75 centavos to P22.45 apiece. — Revin Mikhael D. Ochave

Converge Q3 income jumps to P2.92B, capex guidance lowered

CONVERGE ICT

LISTED fiber internet provider Converge ICT Solutions, Inc. saw its attributable net income for the third quarter (Q3) increase by 40.4% to P2.92 billion, driven by higher revenues.

For the July-to-September period, Converge’s gross revenues grew by 17.2% to P10.42 billion from P8.89 billion a year ago, the company’s financial statement showed.

Broken down, revenues from its residential business climbed by 16% to P8.81 billion, while enterprise business registered a 25% increase to P1.61 billion.

Gross expenses, on the other hand, went up by 12.1% to P6.13 billion from P5.47 billion in the previous year.

“This sustained upward growth trend is reflective of our effort to make internet access more affordable and inclusive for a broader segment of the market,” Converge Chief Executive Officer and Cofounder Dennis Anthony H. Uy said.

“We are encouraged that our initiatives continue to bear fruit, with our partnerships with tech companies empowering us to strengthen our capabilities and our projects with the government contributing to bridge the digital divide,” he added.

For the nine months ending in September, Converge’s attributable net income improved by 29% to P8.21 billion compared to the P6.37 billion reported last year.

Revenues were higher by 14.1% to P29.9 billion from, driven by the “consistently strong performance of its residential, enterprise, and wholesale businesses.”

For the January-to-September period, the residential business accounted for P25.4 billion in the company’s revenues, up 13.2%.

“For the remainder of the year, our focus is to continue exploring innovative ways to enhance satisfaction across our diverse customer base,” Converge Chief Operations Officer Jesus C. Romero said.

As of the end of September, the company said it had a total of 2.46 million subscribers, comprising 2.22 million postpaid subscribers and 241,848 prepaid subscribers.

For its enterprise business, revenues rose by 19% to P4.5 billion, as all segments registered double-digit growth during the period, including the wholesale segment which remained strong with 16.6% growth year on year.

“We’re encouraged by the steady rally of the company. With this, all signs point us hitting the 12-14% revenue guidance for 2024,” Converge President and Cofounder Grace Y. Uy said.

DELAYED EXPANSION ACTIVITIES
The company’s capital expenditure (capex) for the first nine months ended at P7.5 billion, Converge Chief Finance Officer Robert A. Yu said during a briefing.

“We expect to spend less than what we had initially guided due to the constant rains and floods during the latter half of the year, delaying some of our port rollouts and expansion activities,” he said.

“From P15 billion-17 billion, we now expect to only spend about P11 billion-13 billion, with the difference getting delayed to next year,” he added.

In October, Converge announced its partnership with streaming service Netflix to offer internet and Net-flix entertainment plans.

The new Converge Netflix bundle will be offered to its existing FiberX customers.

At the local bourse on Wednesday, shares in the company climbed by 3.01% to close at P16.44 each. — Sheldeen Joy Talavera

LT Group profit rises to P7.03 billion, driven by banking, liquor segments

PHILSTAR FILE PHOTO

LUCIO C. TAN-LED conglomerate LT Group, Inc. recorded a 12.5% increase in its third-quarter attributable net income to P7.03 billion from P6.25 billion last year, led by its banking and liquor segments.

Third-quarter revenue improved by 12.2% to P34.03 billion from P30.33 billion last year, LT Group said in a recent regulatory filing on Wednesday.

For the first nine months, LT Group saw a 3% increase in attributable net income to P19.82 billion from P19.25 billion in 2023. Revenue rose by 12.8% to P95.16 billion versus P84.33 billion a year ago.

Among segments, Philippine National Bank (PNB) accounted for P8.44 billion, or 43% of the nine-month income, followed by the tobacco business at P7.91 billion, or 40%.

The liquor business, led by Tanduay Distillers, Inc. (TDI) and Asia Brewery, Inc. (ABI), contributed P1.51 billion and P714 million, respectively, or 8% and 4% each.

Eton Properties Philippines, Inc. shared P497 million, or 2%, Victorias Milling Co. contributed P277 million, or 1%, and other income reached P478 million, or 2%.

For the banking segment, PNB’s net profit under a pooling method rose by 11% to P15.06 billion.

Gross interest income grew by 15% to P50.13 billion, while gross interest expenses climbed by 28% to P13.65 billion. Net interest rose by 10% to P36.48 billion.

The tobacco business, led by PMFTC, Inc., saw a 12% decline in net income to P7.94 billion. PMFTC’s cigarette volume dropped by 12% to 15.8 billion sticks, while overall industry volume fell by 5% to 30.4 billion sticks.

“These declines were primarily attributed to consumer affordability challenges, rising illicit trade, and the increasing popularity of vaping products,” LT Group said.

For the liquor business, TDI recorded a 31% increase in net income to P1.51 billion. Liquor and bioethanol volumes rose by 6% and 1%, respectively..

Revenue climbed by 15% to P24.61 billion, while the cost of sales rose by 12% to P21.05 billion.

The nationwide market share for TDI’s distilled spirits fell to 32% in September from 32.6% in the same month last year. TDI has a 70.7% market share in Visayas and a 79.7% share in Mindanao.

In October, TDI sold its investment in Asian Alcohol Corp. to Prior Holdings Corp. for P1.8 billion, payable with interest over a four-year period with an upfront payment of P480 million.

ABI recorded a 59% jump in net income to P715 million as revenue surged by 8% to P13.79 billion.

The Cobra energy drink brand maintained its market leadership with a 55% share as of end-September, while the Absolute and Summit bottled water brands had the third-largest share at 17%.

For the property segment, Eton grew its net income by 44% to P499 million. Leasing revenue surged by 4% to P1.59 billion on higher lease rates.

The property company’s leasing portfolio comprises 288,000 square meters, with approximately 192,000 square meters dedicated to office space. On Wednesday, LT Group stocks fell by 0.59%, or six centavos, to P10.14 per share. — Revin Mikhael D. Ochave

Nickel Asia’s income drops 24.2%, hopes boost from new mines

NICKELASIA.COM

NICKEL ASIA Corp. saw its third-quarter attributable net income drop by 24.2% to P1.44 billion from P1.9 billion a year ago due to lower sales.

Revenues fell by 8.01% year on year to P7.69 billion from P8.36 billion due to the lower sale of nickel ore and limestone, the company said in a disclosure on Wednesday.

The company said the sale of ore and limestone decreased to P7.09 billion, 6.6% lower compared to P7.59 billion in the same period a year ago.

Revenues from services dropped 48.6% to P296.94 million from P577.68 million the prior year.

Meanwhile, revenues from its power generation rose 53.6% to P296.76 million from P193.18 million last year.

Nickel Asia chief executive officer Martin Antonio G. Zamora expects the operation of mines in Palawan and Eastern Samar to boost revenues in the coming years.

“This year, we achieved our objective of operating Manicani in Eastern Samar and Bulanjao in Palawan. We are optimistic that these new nickel mines will drive volume and revenue growth in the coming years,” Mr. Zamora said in a separate press release.

He said that Nickel Asia has completed infrastructure enhancements in Dinapigue, Isabela, “paving the way for higher production.”

Nickel Asia owns five mines: Rio Tuba in Palawan, Taganito and Tagana-an in Surigao del Norte, the Cagdianao mine in Dinagat Islands, and the Dinapigue mine in Isabela. These are operated by its subsidiaries.

The company extracts saprolite, which is shipped to Japan and China for the processing of ferronickel and nickel pig iron. It also mines limonite ore, which is processed in Coral Bay and Taganito processing projects.

Meanwhile, the company’s energy subsidiary Emerging Power, Inc. is targeting to achieve a renewable energy capacity of one gigawatt by 2028, as part of its sustainability initiatives.

“By the second quarter of next year, Greenlight Renewables Holdings, Inc., our joint venture with Shell Overseas Investments B.V., will complete construction of the first phase of its solar project in Leyte, with an initial capacity of 120 megawatts peak (MWp),” Mr. Zamora said.

He added that the first phase of the CAWAG solar project in Subic, Zambales will begin operations by the fourth quarter of next year. It has a capacity of 70 MWp.

Nickel Asia shares fell 0.9% or three centavos to close at P3.32 apiece on Wednesday. — A.H. Halili

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