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PHL conglomerates’ P1.65-T renewable push to test capital discipline — S&P

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PHILIPPINE CONGLOMERATES are expected to invest about $28 billion (P1.65 trillion) in renewable energy projects over the next decade as part of a broader $185-billion (P10.9-trillion) investment wave by leading business groups in the Philippines and Vietnam, according to S&P Global Ratings.

In a report released on Nov. 5, S&P said Philippine conglomerates are accelerating their shift toward renewable energy and other emerging sectors as their core businesses mature, positioning themselves for long-term growth.

S&P said the $185 billion combined investment is roughly 2.5 times the conglomerates’ total capital spending in the past decade, underscoring the scale of the upcoming investment cycle.

“We estimate that over the next decade [the Philippine conglomerates] will invest up to $28 billion on renewable energy, or about 20% of their total capital expenditure (capex) plans. The development of renewable energy sources in the Philippines is gaining momentum due to generally supportive policies, with private players leading the way,” S&P said.

By 2030, the country’s top business groups could account for 40-50% of the Philippines’ total renewable energy capacity, the report noted.

The study covered Aboitiz Equity Ventures, Inc., Ayala Corp., JG Summit Holdings, Inc., San Miguel Corp., and SM Investments Corp., which are among the country’s largest publicly listed conglomerates by market capitalization. S&P Global Ratings said it does not rate these companies.

S&P said Philippine firms have demonstrated stronger financial discipline than their regional peers, financing about 55% of capital expenditures in the past five years through operating cash flows and divestments rather than debt.

This helped keep their average gross debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio at less than one time in 2024, compared with about six times for major Vietnamese conglomerates.

“Conglomerates in the Philippines and Vietnam are not starting from a weak position. Mature core operations and access to deep funding pools give the firms a credible shot at high-barrier sectors,” S&P Global Ratings credit analyst Fiona Chen said in the report.

“Still, the scale and nature of these investments could push leverage beyond peer norms, raising questions about long-term capital structure and risk tolerance.”

About 20% of Philippine conglomerates’ capital spending is now allocated to renewable energy projects, S&P said, while another 13% goes to infrastructure and 12% to electric mobility. Investments in core businesses still account for more than half (54%) of total capital expenditure.

S&P said the Philippines’ well-developed banking and bond markets and a diversified investor base have provided conglomerates access to longer-tenor and more flexible funding.

“The Philippines’ more developed banking and bond markets, underpinned by a diversified investor base, allow for longer tenors and frequent issuances, which help spread out debt maturities,” the report said.

VIETNAM
In contrast, Vietnamese conglomerates rely more heavily on short-term domestic debt, with about two-thirds of bonds maturing within one to three years, leaving them vulnerable to refinancing and liquidity risks.

S&P estimated that the four Vietnamese conglomerates covered in its study — FPT Corp., Hoa Phat Group Joint Stock Co., Masan Group Corp., and Vingroup Joint Stock Co. — will likely invest $80 billion in infrastructure over the next decade, primarily in high-speed railways and fossil-fueled power plants.

The report said capex in new ventures reached 40% of total spending in Vietnam and 30% in the Philippines as conglomerates ramped up diversification into infrastructure, renewable energy, and electric mobility.

However, S&P noted that many of Vietnam’s new ventures remain loss-making, while Philippine firms still derive more than 80% of their net profit from core operations, highlighting stronger earnings resilience.

It added that governance and transparency remain crucial across both markets as conglomerates expand into multiple sectors. “Improving transparency is key to gaining a clearer view of obligations and cash flow, especially since large projects that span different parts of a group can create systemic risks because of crossholdings and guarantees,” S&P said.

The credit watcher said the next decade will test the capital discipline, funding flexibility, and governance strength of conglomerates in both countries.

“How conglomerates in the Philippines and Vietnam resolve today’s funding choices will not just shape their balance sheets but their capacity to invest in transformation, sustainability, and new markets,” it said.— A.G.C. Magno

ICTSI income climbs 26% on higher cargo handling and port revenues

Aerial photo of ICTSI's flagship Manila International Container Terminal at the Port of Manila — ICTSI.COM

RAZON-LED International Container Terminal Services, Inc. (ICTSI) posted a 26.27% rise in third-quarter attributable net income to $267.72 million, supported by higher cargo volumes and improved port revenues.

“ICTSI’s diversified portfolio has enabled us to capture opportunities in dynamic markets…,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a stock exchange disclosure on Thursday.

“As we continue to invest in strategic expansions and pursue new opportunities across the Americas, Asia, and Europe, the Middle East, and Africa (EMEA), we remain committed to driving sustainable growth and innovation throughout our global network. Looking ahead, ICTSI is well-positioned to build on this momentum and deliver long-term value,” he added.

Revenues for the three months ending September climbed 19.67% to $827.74 million from $691.70 million in the same period last year, even as gross expenses rose 12.73% to $356.61 million from $316.35 million.

For the January-to-September period, ICTSI’s attributable net income increased 18.81% to $751.56 million from $632.58 million a year ago.

“ICTSI’s excellent performance in the first nine months of 2025 is a testament to the strength of our global operations and the disciplined execution of our strategy,” Mr. Razon said.

Consolidated revenues rose 16.42% to $2.34 billion from $2.01 billion in the same nine-month period last year.

Broken down by region, port operations in Asia accounted for the largest share with $985.63 million in revenues, followed by $919.70 million from the Americas and $432.46 million from EMEA.

ICTSI said its revenue growth was driven by tariff adjustments, increased volumes with a favorable container mix, and higher ancillary revenues from selected terminals.

In terms of volume, the company handled 10.69 million twenty-foot equivalent units (TEUs) in the first nine months, up 11.35% from 9.60 million TEUs in the same period last year.

Asian ports handled 5.64 million TEUs, while ports in the Americas processed 3.05 million TEUs, and those in EMEA handled 2 million TEUs.

ICTSI attributed the increase in throughput to improved trade activity across all regions. Excluding the impact of new operations in Iloilo and Indonesia, as well as discontinued operations in Indonesia, consolidated volume would still have been up by around 11%, it added.

Capital expenditure reached $449.61 million in the first nine months, mainly allocated for ongoing expansion at Contecon Manzanillo S.A. (CMSA) in Mexico, terminal upgrades in the Philippines, upfront payments for a container terminal in Indonesia, and equipment acquisitions.

The company has earmarked $580 million in capital spending for this year to fund its new project in Batangas and the third-phase expansions of its terminals in Mexico and Manila.

At the local bourse on Thursday, ICTSI shares gained P2, or 0.38%, to close at P525 apiece. — Ashley Erika O. Jose

Smart secures P2-B green loan for 5G network expansion

PHILSTAR FILE PHOTO

SMART COMMUNICATIONS, INC., the wireless arm of PLDT Inc., has obtained its first green loan worth P2 billion from Metropolitan Bank & Trust Co. (Metrobank) to support the expansion of its fifth-generation (5G) network nationwide.

“This green loan is more than a financial milestone — it demonstrates Smart’s participation in shaping a low-carbon digital future. By investing in energy-efficient technologies, we are pursuing business growth and efficiency, while being mindful of our impact on the environment,” PLDT and Smart Chief Finance and Risk Management Officer Danny Y. Yu said in a media release on Thursday.

Smart said the proceeds will be used to fund upgrades and expansion of its network infrastructure aimed at improving operational efficiency and enhancing customer experience.

A green loan is a type of financing instrument that allocates proceeds exclusively for eligible projects that promote environmental sustainability.

5G technology is designed to handle higher data traffic at faster speeds while consuming less energy per gigabyte. It can also shift to low-energy modes and optimize power use, thereby reducing greenhouse gas emissions.

“Financing plays a key role in enabling the achievement of our business and sustainability goals and in our pursuit of initiatives that contribute to our long-term growth and create value for the planet and the future generations,” PLDT and Smart Chief Sustainability Officer Melissa Vergel De Dios said.

The latest green facility follows PLDT’s P2-billion social loan secured last year to expand its fiber network and a P1-billion green loan for network upgrades and expansion.

Smart is the wireless unit of PLDT Inc. Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Monde Nissin targets growth in alternative meat segment

PHILSTAR FILE PHOTO

LISTED food manufacturer Monde Nissin Corp. is shifting its focus toward expanding its alternative meat business after reporting improved margins and launching a nutrition campaign.

“The campaign that’s underway in Q4 (fourth quarter) focuses on our frozen ingredients range with the biggest frozen campaign that we’ve seen in three or four years,” Quorn Foods Chief Financial Officer Nicholas Cooper said in a virtual briefing late Wednesday.

“It’s looking to bring new consumers back into the core part of our frozen ingredients range, which has been reformulated to be free from artificial ingredients and is running under the ‘Nothing to Hide’ banner.”

Earlier this year, Quorn unveiled its multi-million-pound campaign aimed at positioning its products as high-protein and additive-free, a move expected to lessen consumer skepticism over highly processed food.

“For meat alternative products, we aim to continue to slow down our sales decline through our ‘Nothing to Hide’ campaign for our frozen ingredients, which we have just launched,” Monde Nissin Chief Executive Officer Henry Soesanto said.

“Our Quorn frozen ingredient SKUs (stock keeping units) are our key volume SKUs, and therefore, are critical to finally arrest the volume decline.”

Quorn Foods’ third-quarter gross profit jumped by 29.3% to P904 million. It likewise grew by 15.2% to P2.5 billion in the first nine months.

Revenues of the meat alternative business declined by 1.1% in the third quarter and 3.9% as of end-September.

“While this compares very favorably with the high single-digit volume decline that we experienced in the past, we believe that we cannot cost save our way to glory,” Monde Nissin Chief Financial Officer Jesse C. Teo said.

“Eventually, we need to be able to address the volume decline to be able to continue the very favorable gross margin accretion path that we are already seeing.”

Quorn Foods’ core earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at P255 million in the third quarter.

“While category conditions remain challenging, the improvement in EBITDA demonstrates that our initiatives are making steady progress,” Mr. Soesanto said in a stock exchange disclosure on Wednesday.

Monde Nissin Corp. acquired Quorn, a meat alternatives brand in the United Kingdom, in 2015.

The snack maker posted a 13% increase in its third-quarter net income to P2.3 billion amid foreign exchange gains and steady growth in its core branded food business.

Some of Monde Nissin’s brands include Lucky Me! noodles, SkyFlakes crackers, Fita crackers, Dutch Mill drinks, and Monde baked goods.

At the local bourse on Thursday, Monde Nissin shares fell by 2.54% or 16 centavos to close at P6.14 apiece. — Beatriz Marie D. Cruz

Moudifa the AI musical: I have seen the future and it is not AI

DIRECTOR JAG CRUZ (left), executive producer and writer Margarita Marquis (center), and the cast of Moudifa the Musical.

By Brontë H. Lacsamana, Reporter

AN UNFINISHED production titled Moudifa the Musical is serving as the proof of concept for artificial intelligence (AI)-generated music and lyrics, created by its executive producer, entrepreneur and budding writer-composer Margarita Marquis.

At a preview of the musical on Nov. 4, held at the RJ Bistro in Makati’s Dusit Thani Hotel, BusinessWorld saw some of the work-in-progress material, helmed by TV director Jag Cruz.

The title of the musical, Moudifa, refers to the Arabic word for servicewoman — in aviation, a flight attendant. The musical follows a Filipina working in the Middle East, a novel, Moudifa!: Culture Shock from the Top, which was inspired by Ms. Marquis’ real-life story, published in 2007.

Ms. Marquis told the press that they need producers for her vision to come to life — and that vision is to be “the next Miss Saigon.”

Aside from advocating for the empowerment of women and overseas Filipino workers, proceeds of the show will go to the Mother and Child Foundation, which she also heads.

“[To be like] Miss Saigon, we need a lot of money,” she explained. “There’s a purpose, there’s advocacy, so it should be done.”

One thing she was proud to say about the musical is that she wrote all the music and lyrics herself — with the aid of AI.

“At the beginning, a hundred songs I created with AI. I said, ‘Okay, I will use AI, no soul,’ kasi sabi nilang lahat walang soul daw, diba (because everyone says that it has no soul, right)? So I created [it] like this. And then, at 3 o’clock in the morning, pwede na (it was okay),” she said, when we asked what her creative process was.

“After 50 songs, AI was following my feelings, my soul! I said, ‘Okay, AI, can you cry?’ AI can cry!” Ms. Marquis explained at the press conference. “Did you hear the lyrics? It is not AI. It is from my soul.”

A REVIEW OF THE SONGS
While the musical is still in development, with the producers in the process of seeking funding for a full production to be staged in 2026, potential patrons and select members of the press got to see 14 musical numbers in total at RJ Bistro.

The songs were pre-recorded tracks sung, or at times lip-synched, by the production’s performers (the lead character of Moudifa is played by VIVA artist Jassy Calupitan and RJ & The New Riots vocalist Angie Bonnevie). They had only been rehearsing for a week at that point.

The ensemble performances were danced by the Next Us Dance Crew, who didn’t lack in passion and energy.

The first song, “Moudifa’s Flight,” began with oddly verbose lyrics set to a generic pop sound (think Lady Gaga if she stopped trying) — already a hint that it was created with the assistance of AI.

It starts off with “In a land where the sand meets the golden oil, Moudifa’s on a mission, through the sweat and toil.” The chorus goes, “Ooh, Moudifa, your spirit soars / In the land of petrol dollars, you open the doors / Stronger than the laws that try to control / In your wings of freedom, you’re finding your soul.”

The succeeding songs were surprisingly polished as well, blending genres with ease. A more upbeat pop track, “Boom Boom Boom,” has the younger Moudifa actress move with the dance crew, while the Tagalog-language “Lumipad ng Mataas” provides a cute anthem for her dreams.

The songs by the love interests in Moudifa’s story come off as particularly juvenile. “Dance Dance Dance” has the character of The Football Player hype up the crowd with a P-pop dance tune while “Prince of Dreams” has The Prince represent idealized affection in the form of a somewhat-Arabian-inspired Ed Sheeran-esque acoustic ballad.

(Strangely The Prince sings about himself from the perspective of Moudifa: “Oh, the young prince from the Arabian night / With the grace of the dawn and a charm that’s so bright / Never thought I’d see him, he slipped through my hands / But the girl in me dreams of faraway lands.”)

The fact that they had 14 songs ready for the preview — many of which the actors and actresses could barely sing with conviction because of how chunky the lyrics were — piqued this writer’s suspicion that AI was used. So I asked and Ms. Marquis answered in the affirmative.

ON USING AI IN MUSICAL THEATER
Ms. Marquis, as executive producer and writer, was open about using AI for her creative process.

“You know how I created the songs, how many? Hundreds. Hundreds of songs. Hundreds from my heart,” she said at the press conference.

The keyword here is created — even when BusinessWorld asked about how she wrote the songs, she corrected us by saying “created.”

She specified that her process was “modern, with AI, the future of music.”

The audience was stunned when she went on, in front of the very singers she hired for the showcase: “Mawawala lahat ng mga singers (All the singers will be gone), I’m sorry. AI will take over. That is for sure.”

The amalgamation of genres displayed was described by Ms. Marquis as a mixture of “Lady Gaga, Arabic, and pop.”

Asked to react to the idea of using AI in this way, playwright and librettist Luna Griño-Inocian (The Lion, the Witch, and the Wardrobe, The Horse and His Boy, and The Quest for the Adarna) said that AI ultimately “gets emotions and feelings from somebody else,” using original work by other artists as a template.

“When your ideas are posted online, they get eaten up and used. You may think it’s your feelings, but AI gets its ideas from human beings,” she explained. “You can spot if a song sounds a lot like something else because AI eats it up and throws it back at you. You can recognize it with certain repeat patterns.”

Aside from the uncanny verbosity, one noticeable pattern in Moudifa is the opening lyrics of many songs: “In the heart of Manila where the night comes alive / Ermita’s glow, where the dreamers strive,” then “In a world where the colors shine bright / I wear my uniform and I’m ready for flight,” and “In a desert palace under a mystic moon / A young prince sings a forgotten tune.” All display similar sentence structures.

Composer and scorer Vincent De Jesus (Care Divas, Himala: Isang Musikal, Kung Paano Ako Naging Leading Lady, Batang Rizal, Zsazsa Zaturnnah Ze Muzikal) told BusinessWorld in a video call that it really shows when something is “just pixels and stolen information all put together.

“Any composer or artist would agree that AI has no place in the arts, in musical theater, because why would you pay P2,000 for a ticket when you can just generate your own musical using prompts at home?” he said.

Composer and musical director Ejay Yatco (Pingkian: Isang Musikal) weighed in with a message sent on Facebook: “I personally am against the use of AI to write music. The most I can see it being used for is as a brainstorming tool.

“The point of art is to provide a human perspective on things, to tell stories as humans,” he said. “The AI being an algorithm is an impressive tool, but it will never be able to replicate a true human perspective.”

Not every artist approached by BusinessWorld was so negative about the use of AI. Musician and composer Myke Salomon (Bar Boys: A New Musical) told BusinessWorld in a Zoom call that the Moudifa production shouldn’t be crucified for their AI use.

“When I started out, I had the computer to help me read and write notes and compose,” he explained. “I understand her need for a tool, but it still boils down to whether you can use it to communicate your story and translate it into an immersive experience and a transformative show.”

He added that to Ms. Marquis’ claims of an AI future where performers will be obsolete, they can be protected by a musicians’ equity, such as when unions on Broadway protested over Here Lies Love using only a DJ and canned music, and no live musicians.

For Mr. De Jesus, the Filipino theater community can be just as vigilant, expressing confidence that if a company were to open and mount shows fueled by AI, “the industry and the audiences will not stay silent.”

“Coming from the pandemic, we’ve only just begun reaping the fruits of our labor,” he said. “Starting 2023, left and right we’ve had so many original plays, musicals, student productions. At the end of the day, the audience will be the judge.”

DigiPlus profit drops 51% on tighter gaming rules

DIGIPLUS.COM.PH

LISTED DigiPlus Interactive Corp. (PLUS) reported a 51.41% decline in its third-quarter net income to P1.71 billion, citing stricter regulations that prompted e-wallet providers to remove in-app access to licensed online gaming platforms.

“This temporarily disrupted player activity and transaction volumes across the industry during the period,” the company said in a statement on Thursday. “In response, DigiPlus took proactive measures to enhance player protection and customer service platforms.”

In September, DigiPlus partnered with Philippine First Insurance Co., Inc. (PhilFirst) to launch a surety bond program offering up to P1 million in financial protection for players using BingoPlus, ArenaPlus, and GameZone. The initiative allows users to secure coverage for their in-game wallets and balances without purchasing a separate policy. 

The following month, DigiPlus signed a partnership with CIS Bayad Center, Inc. to expand over-the-counter payment options nationwide, providing users of its gaming platforms with more secure and convenient transaction methods.

Despite the steep quarterly drop, DigiPlus said it sustained growth for the first nine months of 2025.

For the January-to-September period, the company’s net income rose by 15.59% to P10.11 billion from P8.75 billion a year earlier, driven by steady gains in its retail games segment and contributions from new product launches and operational improvements.

“This period demonstrates DigiPlus’ resilience amid temporary setbacks. Throughout this period, we continue to focus on digital innovation, player protection, and good governance,” DigiPlus Chairman Eusebio H. Tanco said.

“As we grow our business and expand responsibly into new markets, we remain focused on upholding global corporate governance and responsible gaming standards, while creating a positive impact on the Filipino nation.”

Revenues for the nine-month period increased by 29.61% to P66.83 billion from P51.56 billion in 2024. Gross revenues for the third quarter inched up by 0.26% to P19.05 billion from P19 billion a year earlier, supported by continued product development, improved user experience, and stronger corporate governance.

“In the first nine months of 2025, DigiPlus paid P25.59 billion in government taxes and regulatory fees, reflecting a 9% increase from P23.40 billion in the same period of 2024. On a quarter-on-quarter basis, DigiPlus paid P7.17 billion in government taxes and regulatory fees, down 26% due to the impact of the e-wallet delinking directive,” the company said.

On Thursday, shares in DigiPlus fell by 1.63% or 40 centavos to close at P24.20 apiece. — Alexandria Grace C. Magno

BPI’s e-wallet VYBE targets to grow user base

BANK of the Philippine Islands’ (BPI) e-wallet VYBE has partnered with self-service kiosk provider Pay&Go to offer free cash-in services as it targets to grow its user base and help in facilitating cashless transactions.

The partnership is meant to provide VYBE users with an additional way to access their accounts and help expand its reach to non-BPI clients and the country’s unbanked population, the bank said.

This, as around 85% of the 2.3 million VYBE users are the bank’s clients, BPI said.

“But we also have a good number of new-to-banks that we have gained through the year,” BPI Head of Digital Partnerships and Ecosystem Frederick M. Faustino said at the launch event on Thursday. “It’s a good number and we hope to continue to grow that one because it’s also aligning our vision for financial inclusion.”

He said they aim to reach 2.5 million users by yearend and double it by 2026.

“Digital banking must serve not only the tech-savvy but also the overlooked,” Mr. Faustino said. “As we expand VYBE’s access through Pay&Go, we are building a more inclusive financial landscape where every Filipino has the tools to move forward.”

Through the partnership, VYBE users may top up their digital wallet for free via any of Pay&Go’s 3,400 kiosks nationwide.

Pay&Go Chief Executive Officer Danilo C. Ibarra said cash-in is a “huge thing” in the Philippines, with 80% of the population remaining cash-dependent.

“It really becomes a way by which people can be given access to their apps,” Mr. Ibarra said during the event. “So, for all VYBE users, which I think is at about 2.3 million, this gives them an opportunity, an alternative, where they can access their account.”

Since the partnership was rolled out in September, the value of VYBE transactions made via Pay&Go has reached over P30 million monthly, he said.

“It’s been just a little over a month. Right now, we’re doing about P30 million a month,” he told BusinessWorld on the sidelines of the event. “So, mabilis (it’s fast)… The fact that we’re getting that kind of traction right away, it goes to show the promise of the product and how VYBE can really contribute (to) the gross transaction value.”

However, that figure remains small when compared to Pay&Go’s P10-billion total transaction value last month, he said.

Mr. Ibarra added that he expects the value of VYBE cash-ins done through their kiosks to grow to around P40 million to P50 million this month.

“True digital transformation means extending real value to the underserved. Our partnership with Pay&Go brings us closer to communities. By making it easier — and free — to cash in to VYBE, we’re helping more Filipinos participate in the digital economy,” BPI Chief Technology Officer Alexander G. Seminiano said in a statement.

The share of online payments in monthly retail transactions stood at 57.4% in terms of volume and 59% in value terms in 2024, based on the latest Bangko Sentral ng Pilipinas (BSP) data. These are up from 52.8% and 55.3%, respectively, in 2023.

The BSP wants online payments to make up 60-70% of the total volume of retail transactions by 2028 in line with the Philippine Development Plan as part of its goal of transforming the country into a cash-lite economy. — Katherine K. Chan

Globe taps AWS to accelerate digital transformation

Image via Tony Webster/Flickr/CC BY 2.0

GLOBE TELECOM, INC. has partnered with Amazon Web Services (AWS) to leverage its cloud services and emerging technologies to accelerate the company’s digital transformation.

“By leveraging AWS’ advanced cloud capabilities and exploring artificial intelligence (AI)-driven innovations across our operations, we’re positioning Globe to drive faster innovation, enhance operational efficiency through intelligent automation, and create more personalized experiences for our customers,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said in a media release on Thursday.

The multi-year agreement will cover cloud infrastructure modernization, allowing Globe to expand its cloud footprint through investments in infrastructure, including enhanced disaster recovery capabilities and platform engineering improvements.

Globe said its collaboration with AWS has also transformed its network management systems and will introduce solutions for SIM activation and other porting capabilities.

“The partnership will enable real-time campaign management and data streaming capabilities, improving Globe’s ability to serve customers with targeted, timely and relevant offerings,” Globe said.

The agreement further includes the adoption of cloud technologies to enhance its network, strengthen data security, and provide more seamless customer services.

“With AI and digital platforms as growth enablers, Globe is paving the way for new solutions that can improve customer service and expand digital inclusion across the country,” Globe said.

On the local bourse on Thursday, shares in Globe fell by P48, or 3.22%, to close at P1,445 per share. — Ashley Erika O. Jose

Starmaker Mr. M signs with MQuest

THE STARMAKER behind many of the country’s iconic artists, Juan “Johnny” L. Manahan, fondly known as Mr. M, officially signed on with MQuest Ventures and MQuest Artists Agency (MQAA) on Thursday.

Present during the contract signing were Manny V. Pangilinan (MVP), chairman of MediaQuest Holdings, Inc. and Cignal TV, and Jane J. Basas, president and chief executive officer of MediaQuest and Cignal. Also in attendance were TV5 First Vice-President Sienna G. Olaso and MQAA Head Jeffrey H. Remigio.

“We will be in the business of star-making. We’ve been at it for some time now, and more than ever, we know what we’re doing,” Mr. Manahan said in his opening speech.

“MVP has given me a mandate to build a world-class, in-your-face artist center that will discover and train artists for the new decade.”

Mr. Pangilinan praised Mr. Manahan for the rising ratings of Vibe, the fan-powered Original Pilipino Music (OPM) countdown show that he directed and first produced for TV5. He also emphasized that under Mr. Manahan’s leadership, the company is poised to attract the country’s top talents.

“Because talents like that are the best vehicle for creative expression, as storytellers do. So, we need him for this experience and his ability,” Mr. Pangilinan said.

Among Mr. Manahan’s plans is to continue scouting for talent nationwide, a search that is already actively underway.

They also intend to sign more artists for upcoming projects. Andrea Brillantes, who recently signed a deal with MQuest Ventures, and Piolo Pascual, one of the agency’s top stars, sent a warm welcome message.

Mr. Manahan also revealed plans to name the new talent agency within the network “Starworks.” — Edg Adrian A. Eva

Benign inflation gives BSP space to cut rates

BW FILE PHOTO

SLOWER-THAN-EXPECTED October inflation gives the Bangko Sentral ng Pilipinas (BSP) leeway to continue its easing cycle to support the economy, analysts said.

“Sub-target inflation provides sufficient room for the BSP to cut policy rates by 25 basis points (bps) in its December meeting,” Metropolitan Bank & Trust Co.’s (Metrobank) Research and Market Strategy Department said in a report on Wednesday. “Continued economic risks add reason for the BSP to provide further springboard to growth.”

Metrobank Research added that it expects inflation to average 1.8% this year.

“With this backdrop, a 25-bp rate cut from the BSP in December remains plausible, more so if the third-quarter gross domestic product (GDP) print, due on Friday, continues to show signs of persistent economic weakness,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said in a commentary on Wednesday.

Headline inflation was at 1.7% in October, steady from the September clip but slowing from 2.3% in the same month a year ago.

This was a tad below the 1.8% median estimate in a BusinessWorld poll of 17 analysts and was within the BSP’s 1.4-2.2% forecast for the month.

October was also the eighth straight month that the consumer price index was below the central bank’s annual 2-4% target.

For the first 10 months, inflation averaged 1.7%, matching the BSP’s full-year forecast.

The central bank has slashed benchmark borrowing costs by a total of 175 bps since its easing cycle began in August 2024, with the policy rate now at an over three-year low of 4.75%.

After the Monetary Board delivered a fourth straight 25-bp reduction last month, BSP Governor Eli M. Remolona, Jr. said they could extend their rate cut cycle until next year to help cushion the economy amid the expected fallout from the corruption scandal surrounding state flood control projects that has affected both public and private investments.

Analysts believe that slower government spending due to the controversy may have led to weak third-quarter GDP growth. A BusinessWorld poll of 18 economists and analysts yielded a median estimate of a 5.3% expansion for the period, slower than the 5.5% expansion in the second quarter and below the government’s full-year growth target of 5.5%-6.5%.

Mr. Neri said below-potential economic growth may prompt the BSP to deliver two more rate cuts in the first half of 2026.

“The BSP may also choose to move in tandem with a potential Federal Reserve pivot, especially if the market prices in deeper US rate cuts once Fed Chair Jerome Powell’s term expires in May 2026,” he added.

“However, such a strategy, if materialized, raises the risk of policy overshooting, particularly if inflation rebounds later next year as base effects turn less favorable.”

He said bets that the BSP’s stance will remain accommodative versus a more cautious Fed could weigh on the peso due to the narrowing rate differential between the two central banks.

“The dollar-peso recently touched a record high amid strong import season demand, compounding the BSP’s dovish bias and persistent equity outflows. However, the seasonal inflow of remittances as we approach the Christmas holidays should provide temporary support, helping the peso end the year around P58.20.”

The peso closed at a new record low of P59.13 on Oct. 28.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said in a separate note that they expect a cut in December and another reduction next first quarter as inflation is likely to stay below the BSP’s target range until then.

“Our 1.7% full-year inflation forecast for this year remains appropriate, and downside risks to our 2.4% projection for 2026 are intensifying,” he said. — Katherine K. Chan

PAL, Southwest ink interline deal to widen US reach

BW FILE PHOTO

FLAG CARRIER Philippine Airlines (PAL) has entered into an interline partnership with Southwest Airlines, allowing transoceanic passengers to book single-ticket journeys across both carriers.

“Our interline partnership with Southwest Airlines enables seamless connections and single-ticket journeys across both of our networks,” PAL Vice-President for Revenue Management Christoph Gaertner said in a media release on Thursday.

The partnership will expand access between the network of airports served by Southwest Airlines and PAL’s destinations across the Philippines, Asia, Australia, and the Middle East.

“As we continue to expand PAL’s global reach, this collaboration provides more travel options and greater flexibility, giving our guests access to a wider range of destinations in the United States,” Mr. Gaertner said.

Southwest Airlines connects travelers through shared gateway airports such as Los Angeles, Seattle-Tacoma, San Francisco, and Honolulu, Oahu, where the carrier operates about four dozen interisland arrivals and departures per day.

“Each airline partnership brings unique and incremental reach to places around the globe for both carriers and gives more consumers an opportunity to begin or end their journey with Southwest,” Southwest Airlines Chief Operating Officer Andrew Watterson said.

The agreement underscores PAL’s commitment to expanding regional access and offering more travel options between the United States and the Philippines.

PAL earlier said it expects to receive its Airbus A350-1000 by December or January, as part of its fleet modernization and growth program that includes refurbishing older aircraft.

The new aircraft will be deployed on flights to New York, the company said previously.

In May, PAL said it was preparing for the delivery of nine Airbus A350-1000s and 13 A321neo aircraft, which will be used for nonstop flights to North America and other international destinations. — Ashley Erika O. Jose

IV of Spades releases comeback album

FILIPINO POP-ROCK band IV of Spades has dropped their sophomore album, Andalucia, which also serves as their comeback after a six-year hiatus. Ahead of its release, the band held a press conference where they detailed how they got back together to make new music.

The album aims to capture “the essence of friendship, artistic maturity, and rediscovered unity,” amid the weighty legacy of being a defining act in modern OPM. Previously released tracks include “Aura” and “Nanaman,” which represent their creative rebirth.

For band members Zild Benitez, Blaster Silonga, Badjao de Castro, and Unique Salonga, it was important to “prioritize their relationship first before working on a new project.”

Masaya at sobrang relaxed lang kami (We’re just happy and very relaxed),” said lead guitarist and vocalist Mr. Silonga on their dynamic now they’re back together. “Para lang kaming may ginagawang school project (It’s like we were just working on a school project).”

He added that they had gradually been hanging out more and more since 2022, which was essential in making them “okay again” as a band.

For vocalist and rhythm guitarist Mr. Salonga, who was the first to leave the band in 2018 to pursue a solo career, it took them a while before they could be fully friends again. “Nakakamiss nga kasama silang tatlo (I really did miss being with the three of them),” he said.

Co-produced with Brian Lotho and Emil Dela Rosa, Andalucia features 12 tracks that traverse genres and emotions while maintaining the band’s penchant for introspective songwriting.

Vocalist, bassist, and keyboardist Mr. Benitez explained that they took the title from the name of his apartment building, where they would always meet up. “Tawa nung una, pero after a few seconds, ‘parang magandayon, ah!’ (We laughed at it at first, but after a few seconds, ‘that kinda sounds good!’)” he recalled.

Their previous album was ClapClapClap! in 2019. On the change in sound from then, he said: “During that time, we felt like doing funk and disco. Ngayon, gusto namin tunog-bahay kasi sa bahay namin nirecord (Now, we want a homey sound because we just recorded it at home).”

“You can’t please everyone,” Mr. Benitez added, on their mindset about fans’ opinions, “But I can please myself and my friends!”

Opening the album is the track “Tara,” which drummer Mr. De Castro said is his favorite for its acoustic rock sound that “reminds him of sunset.” Next is the explosive “Monster,” a vibrant yet gritty rock anthem that contains retro influences.

Other memorable songs are “Konsensya,” which blends 1990s alt, indie, and Britpop genres, and the closing track “Suliranin,” an escapist anthem that invites listeners to leave their worries behind and eventually lose themselves.

The release of Andalucia coincides with the band’s sold-out Dec. 12 concert at the Mall of Asia Arena, with a Dec. 13 performance recently added due to overwhelming demand.

Presented by Karpos Multimedia, these shows will feature IV of Spades performing new material for the first time alongside reimagined classics. — Brontë H. Lacsamana