Toyota, Pony.Ai to set up robotaxi JV with $139M investment

August 4, 2023 | 3:53 pm

BEIJING – Autonomous vehicle technology startup Pony.Ai on Friday said it would set up a joint venture with Japan’s Toyota Motor with an investment of 1 billion yuan ($139 million) to mass produce robotaxis.

The new company, which will also involve Toyota’s joint venture with Chinese state-owned Guangzhou Automobile Group (GAC), will be established this year and will see GAC-Toyota produce cars that will use Pony.Ai’s ride-hailing software, Pony.Ai said.

The venture marks a new development in the partnership between Pony.Ai and Toyota, which first teamed up in 2019.

In the years since, the Japanese automaker has invested hundreds of millions of dollars in Pony.Ai.

Pony.Ai, which has offices in China and the United States, has launched robotaxi services in Beijing and Guangzhou.

Toyota last month said it planned to accelerate local design and development of “smart cockpits” that meet the needs of the Chinese market, as part of a broad pivot to electric vehicles as it seeks to catch up with increasingly aggressive local rivals. — Reuters

Australia calls for China to end trade curbs as barley tariffs lifted

August 4, 2023 | 3:51 pm

SYDNEY/BEIJING – Australia on Friday used China’s decision to drop anti-dumping tariffs on its barley imports to call for the end to all remaining trade restrictions, led by wine, as commercial ties between the two trading partners edge towards normalization.

China’s Ministry of Commerce said on Friday anti-dumping and anti-subsidy tariffs on Australian barley would end on Saturday, roughly three years after the 80.5% duties first cut off what was once as much as a A$1.5 billion ($986.25 million) annual trade and led Canberra to file a case at the World Trade Organization (WTO).

The barley decision follows the resumption of trade in products like coal and timber and puts a spotlight on the few remaining Australian products restricted by China, including wine, which also faces tariffs, as well as unofficial restrictions on lobster and meat exports from certain abattoirs.

Australian Trade Minister Don Farrell said on Friday that Chinese restrictions affecting roughly A$20 billion of annual trade as of last May had shrunk to hit about A$2 billion of exports.

“We intend to use this process (barley) as a template for resolving the issue in respect of wine, which is still ongoing… as we seek to resolve all of those outstanding issues,” Farrell told reporters after the decision.

Relations between the two major commodity trade partners had deteriorated in 2020 after Australia called for an inquiry into the origins of COVID-19, triggering reprisals by Beijing including anti-dumping duties on Australian wine and barley.

Tensions between Canberra and Beijing have eased since the centre-left Labor party won power in Australia last year, with Chinese purchases of Australian coal and timber resuming this year.

The barley decision also smoothes the way for a potential trip to Beijing later this year by Prime Minister Anthony Albanese, although no date has been set.

The barley tariffs will be dropped starting on Saturday, China’s Ministry of Commerce said, noting industry players had reported increasingly robust beer market demand and domestic barley supply could not meet consumption needs.

The Australian dollar was up 0.34% to $0.65715 after the announcement, having risen to as high as $0.65875 earlier in the session, recovering from a two-month low it hit on Thursday.

POSITIVE STEP FOR WINE

Australia’s wine trade with China was once worth A$1.2 billion annually, according to industry group Australian Grape & Wine, whose CEO Lee McLean said the end of the barley tariffs was a positive step.

Wine producer Treasury Wine Estate’s shares reversed earlier declines to close 2.7% following the barley decision against an otherwise flat market.

The Australian government said it would end its barley dispute at the WTO but had not yet dropped a separate complaint against China’s tariffs of up to 218% on Australian wine.

BARLEY MARKET SHIFTS

Rabobank senior grains analyst Dennis Voznesenski said the barley decision would be positive for Australian prices and farmers with malt quality barley were especially likely to attract a premium over recent prices.

“Market players who are going to be shipping barley to China may ask for a premium due to risks involved as there are going to be some concerns, if for example, China goes back on its decision,” he said.

Grain Producers Australia CEO Colin Bettles welcomed the removal of tariffs, calling it a win for Chinese consumers and industry as well as local exporters.

Chinese buyers had turned to Canada, France and Argentina to replace Australian barley supplies over the last three years, while Australian sellers shifted exports to feed barley markets in the Middle East.

Those trade flows are likely to shift again after China drops the tariffs, with its barley buyers expected to begin purchases of the new Australian crop harvested in October for arrival by year-end. — Reuters

PHL inflation slows for sixth straight month in July

August 4, 2023 | 3:36 pm

vegetable vendor — A WOMAN buys vegetables at a market in Quiapo, Manila. — PHILIPPINE STAR/EDD GUMBAN

Philippine annual inflation eased for a sixth straight month in July, the statistics agency said on Friday, reflecting slower increases in food and utility costs.

The consumer price index rose 4.7% in July, its slowest annual increase since March 2022, but the inflation rate remained above the central bank’s 2% to 4% target for the year.

Headline inflation for January to July averaged 6.8%.

Economists in a Reuters poll had forecast the consumer price index would rise by 5.0% for July, above the central bank’s projection for a 4.1% to 4.9% rise for the month.

Core inflation, which strips out volatile food and fuel items, slowed to 6.7% in July, falling from 7.4% in the previous month.

The Bangko Sentral ng Pilipinas (BSP), which next meets on Aug. 17, has kept interest rates steady at its last two meetings after nine rate hikes totaling 425 basis points that brought its key policy rate to 6.25%.

The BSP said it was ready to tighten monetary policy as necessary to keep a lid on price pressures.

Though prices cooled for a sixth straight month, the BSP said that upside risks from wage and transport fare hikes and bottlenecks in food supply remain.

“The BSP stands ready to adjust the monetary policy stance as necessary to prevent the further broadening of price pressures as well as the emergence of additional second order effects,” it said in a statement following the inflation data.

In an interview with CNN on BSP Governor Eli M. Remolona reiterated the central bank’s readiness to act to bring inflation back to its target and anchor consumer price expectations.

“If supply side shocks are large enough and they are not compensated by weaker demand, then yes we will have to raise again,” Mr. Remolona said. “We are not out of the woods yet.

Mr. Remolona, who last week said it was too soon to declare a victory against inflation, added: “We are not ready to ease.”

ING Economist Nicholas Antonio T. Mapa said in a post the central bank could only consider rate cuts when inflation fell within the target and if the US Federal Reserve, which last week delivered its 11th rate increase, begins easing. — Reuters

Ayala’s new sustainability chief energized by ESG’s role in propelling Philippine growth

August 4, 2023 | 3:36 pm

Jaime Zobel Urquijo took the helm as Chief Sustainability and Risk Officer of Ayala Corporation on Tuesday.

“This is a tremendous honor and responsibility, and I am very thankful to Ayala Corporation President & CEO Bong Consing and the board for providing me with this incredible opportunity,” Urquijo said.

“I am extremely fortunate that Ayala Corporation has always been a leader in this field, and although a relatively new position in many companies, I am humbled to be coming into the role as the company’s fourth CSRO. I look forward to building on the incredible foundation that my predecessors have built,” he said.

Urquijo, who was previously Vice President for Business Development at Ayala Corporation’s listed energy platform ACEN, succeeds Albert de Larrazabal who remains Chief Finance Officer of the company. The CSRO role was previously held by former Ayala CFOs Chito Gonzales and TG Limcaoco, who is currently the President & CEO of BPI.

During his tenure at ACEN, Urquijo led initiatives to expand the group’s portfolio of assets in the Philippines, Vietnam, Myanmar, and Indonesia. Most recently as country manager for Indonesia, he established ACEN’s office in Jakarta. These initiatives resulted in 500MW of operating wind and solar assets in Vietnam and over 2GW of pipeline projects for ACEN across the region.

Prior to his time at ACEN, he served as the Head of Business Development for AF Payments, Inc., a joint venture between the Ayala group and Metro Pacific which was awarded and successfully delivered on a concession to modernize the ticketing system of the LRT 1, LRT 2, and MRT 3. Urquijo and the AF Payments team created the Beep Card payment system, which delivered the country’s first interoperable public transport payment card, integrating the rail commute of the 1.5 million commuters who use the LRT and MRT daily, with buses and retail use cases.

“Having spent close to 10 years working for different business units within the group, I am really looking forward to the opportunity of returning to Ayala Corporation to build on this experience and position the sustainability and risk teams as valuable partners to the different business units throughout the portfolio, as we all try to tackle the sizable but exciting challenges and opportunities ahead,” he said.

When it comes to the priorities that Urquijo will focus on as the CSRO, he believes that all risk and sustainability teams in the Philippines face a unique set of challenges.

“On the one hand, the Philippines has been ranked as one of the countries most impacted by climate change. This will have a significant impact across our group of companies, and we will need to implement the right mix of adaptation and mitigation initiatives to best address this risk,” he said.

“On the other hand, the country has been projected by PWC to be the 19th largest economy in the world by 2050 (measured in GDP in purchasing power parity terms) as it continues growing faster than most economies. So, there is a very interesting set of trade-offs that we are facing in how we can simultaneously ensure we are managing the risks presented by climate change; continue to be good corporate citizens at a national and global scale; and finally, continue to generate shareholder value and returns and in so doing, hopefully play a part in helping our country to achieve its tremendous growth potential,” he added.

Urquijo elaborated that he has two main priorities as he takes on this new role: to understand, manage, and reduce risks across the portfolio and to generate measurable value through various ESG initiatives implemented across the group.

“The most pressing ESG initiative we are currently working on, guided by the visionary target set by our previous CEO, Fernando Zobel de Ayala, is the group’s commitment to achieve net zero greenhouse gas emissions by 2050. Our job for the next few years is to figure out how far we are from that target, and then see how we can put a plan in place to achieve it while continuing to grow the business,” he said. “What excites me are the opportunities which are waiting to be explored by being a serious player in this space.”

In addition to his new role, Urquijo is currently a director of BPI, Integrated Micro Electronics, Inc., AC Industrial Technology Holdings, Inc., and Merlin Solar Technology, Inc. Jaime also recently became a trustee and Chairman of the Executive Committee of Ayala Foundation, an organization that he believes will play a leading role in the group’s social initiatives across the communities they serve.

Jaime, 35, received his Bachelor of Arts degree in Political Science from University of Notre Dame in the US and his Master’s in Business Administration from INSEAD in France.

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Transport costs seen to climb in Aug.

August 4, 2023 | 12:34 am

LRT-commuters — Ticket prices at the Light Rail Transit Lines 1 and 2 have increased starting Aug. 2. — PHILIPPINE STAR/EDD GUMBAN

CONSUMERS in Metro Manila face higher transport costs this month after recent hikes in train fares and toll fees, coupled with a big-time increase in pump prices.

While the increase in transport costs may put some upward pressure on August inflation, analysts said this might not be enough to cause another significant spike.

“The increase in transport costs is likely to put some upward pressure on inflation in August, as it will force some consumers to spend more on transportation,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Oxford Economics Assistant Economist Makoto Tsuchiya said the recent hike in fuel prices would have a bigger impact on transport inflation, with both diesel and gasoline having a higher share in the consumer price index.

In the first week of August, prices of gasoline, diesel and kerosene rose by P2.10 a liter, P3.50 a liter and P3.25 a liter, respectively. Crude oil prices have been on a steady rise in the past month, amid concerns over tightening supply as the OPEC+ (Organization of the Petroleum Exporting Countries and allies) group continues to cut output.

“While a price hike of this level will not likely result in reacceleration in inflation, there is an upside risk should pump prices rise much higher,” Mr. Tsuchiya said.

Data from the Philippine Statistics Authority showed the weight of diesel and gasoline to the overall consumer price index basket stood at 0.6% and 1.8%, respectively.

Meanwhile, the recent increase in fares for the Light Rail Transit Lines 1 and 2, as well as the implementation of higher toll fees in some expressways are less likely to affect inflation.

Single-journey tickets at LRT-1 and LRT-2 now cost as high as P35 a ticket.

Mr. Tsuchiya said the LRT fare hikes and higher toll fees might not have a significant impact on headline inflation due to their small weight in the CPI basket.

“Based on a back-of-envelope calculation, we estimate the combined effect of the LRT fee and NLEX toll hike on monthly inflation rate to be around 0.01 percentage points, which is almost negligible,” he said.

He noted that the second-round effects from the fare adjustments might not cause inflation to quicken in the coming months.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said the fare adjustments might lead to a slight uptick in inflation, but not as much.

“Toll rate hikes are fundamentally spread thinly on truckloads/jeeploads of products passing through NLEX. Same goes with train fare hikes, limited passed on effects on the prices of other goods and services in the economy, a slight effect on prices and overall inflation,” he said.

Transport inflation has been on a downward trend since rising by 18.1% in July last year. Latest data from the Philippine Statistics Authority (PSA) showed transport inflation decelerated to -3.1% in June.

“The usual option by the government would be to provide subsidies to help keep fares down. The government could opt to lower taxes on fuel to help offset costs but that would be at the expense of internal revenues that in turn can go to subsidies,” Mr. Roces said.

OTHER RISKS
Despite rising transport costs, analysts said inflation could face risks from the increase in rice prices.

“Given recent measures by India to ban its exports of a certain type of rice, daily rice prices in the Philippines have been rising recently,” Mr. Tsuchiya said.

“Rice accounts for almost 10% of CPI, meaning if rice prices rise by 10%, it could translate to about one percentage point increase in CPI inflation,” he said, adding that this warrants further monitoring.

Based on Aug. 2 data from the Department of Agriculture, prices of local well-milled rice rose to as much as P49 per kilogram on Thursday, while special and premium rice went to as high as P62 and P55 per kilo, respectively.

An El Niño dry spell in the fourth quarter could also lead to a reduction in rice production and other agricultural products, which would drive up prices, Mr. Ricafort said.

El Niño will likely persist until the first quarter next year, according to the state weather agency. The weather pattern may cause dry spells and droughts in some areas of the country.

Mr. Roces said recent weather disturbances could affect the cost of food production and transportation.

Data from the Department of Agriculture showed Typhoon Egay (international name: Doksuri) brought about P3.17 billion in agriculture damage. About P1.34 billion worth of rice damage was recorded.

Still, inflation is on track to hit the central bank’s 2-4% target in the next few months, Mr. Roces said. “But significant upsides are developing which bears monitoring.”

The Bangko Sentral ng Pilipinas (BSP) expects inflation to further ease and return to the 2-4% target by the fourth quarter this year.

It sees inflation averaging 5.4% this year and 2.9% for 2024, before picking up to 3.2% in 2025.

A BusinessWorld poll of 17 analysts last week yielded a median estimate of 4.9% for July inflation, settling at the upper end of the BSP’s 4.1-4.9% forecast for the month.

Inflation likely slowed from 5.4% in June and 6.4% in July 2022. July would mark the sixth straight month of easing inflation, and the 16^th consecutive month inflation exceeded the BSP’s 2-4% target.

The PSA will release its July inflation data today (Aug. 4). — Keisha B. Ta-asan

BIR files 127 tax evasion complaints

August 4, 2023 | 12:33 am

BIR-tax-filling-720p — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE BUREAU of Internal Revenue (BIR) on Thursday filed 127 complaints of tax evasion amounting to P6.1 billion against companies and its officers before the Department of Justice (DoJ).

“All of the cases we filed went through the (legal) process and we need to ensure that there is due process happening here,” BIR Commissioner Romeo D. Lumagui, Jr. told reporters at the DoJ in Manila. “They (companies) were audited, and we gave them an opportunity to respond and present how much tax they actually need to pay.”

In a statement, the BIR said criminal cases were filed against 214 corporate officers who failed to properly report company revenues.

While not giving names, the BIR said the companies were involved in various industries such as manufacturing, retail importation, and construction.

“This is a reminder to every corporation and corporate officer not to ignore the BIR. Do so and we will file criminal cases against you,” Mr. Lumagui said.

The BIR has been ramping up its campaign against tax evaders. In February, the agency filed 74 tax complaints worth P3.5 billion against private companies and people with large liabilities.

Mr. Lumagui also urged companies to avoid using fake or “ghost receipts” and to accurately report their revenues.

“As much as possible we want to avoid filing these cases, we want to encourage our taxpayers to pay their taxes properly to avoid this,” he said.

In June, the BIR filed criminal complaints against companies that bought fake receipts that led to tax losses amounting to P17.9 billion.

The tax bureau in March went after the sellers of fake receipts, including four “ghost” corporations and their accountants. The BIR said the sellers’ operations cost the government about P25.5 billion in taxes.

Mr. Lumagui on Tuesday said the practice of selling fake receipts may have cost the government as much as P370 billion in tax revenues. He said the sale of ghost receipts has reached P1.3 trillion.

The BIR in May filed 69 complaints of tax evasion worth P1.8 billion against tobacco traders caught during a nationwide raid, which the agency said was the first of its kind in its history.

Mr. Lumagui earlier said the filing of criminal cases and raids of illegal businesses would deter more traders from conducting their operations.

These initiatives are part of its Run After Tax Evaders program.

“We urge our taxpayers to participate in all of the BIR processes and avoid hiding since we will give you an opportunity to explain what you need to pay,” Mr. Lumagui said.

Bienvenido S. Oplas, Jr., founder of free market think tank Minimal Government Thinkers, said the BIR’s aggressive tax collection measures could help the agency reach its collection goal this year.

“The strict enforcement of tax laws should also be coupled with simpler procedures, easier compliance and fewer papers and signatures,” he said in a Viber message.

“Otherwise, businesses will be forced to spend more on legal and political protection which would be nonproductive business spending.”

The tax bureau expects to collect P2.64 trillion in revenues this year, which is 13% higher than P2.34 trillion last year. The BIR collects about 70% of government revenues. — J.V.D. Ordoñez

Toll collection on NLEX-SLEX connector road starts Aug. 8

August 4, 2023 | 12:32 am

TOLL COLLECTION at the North Luzon Expressway (NLEX) – South Luzon Expressway (SLEX) Connector Road will start on Aug. 8, Metro Pacific Tollways Corp. (MPTC) said on Thursday.

In a statement, MPTC said the Toll Regulatory Board (TRB) gave its unit NLEX Corp. the go signal to begin collecting toll at the first section of the connector road that runs from Caloocan City to España Boulevard in Manila.

The TRB approved base toll rates ranging from P86 to P302, depending on the vehicle class.

Class 1 vehicles (cars and sport utility vehicles) will pay an P86 toll when passing through the connector road, while class 2 vehicles (minivans and buses) will pay P215. Class 3 vehicles (large trucks and trailers) will pay a P302 toll.

Since the first section opened to the public on March 26, NLEX Corp. said about 14,000 motorists have been passing through the first section of the connector road every day.

The company previously said it is registering about P500,000 in losses a day from allowing vehicles to pass through the connector road for free.

NLEX Corp. targets to complete the second section of the connector road, from España to Sta. Mesa, by the fourth quarter.

“It aims to provide easier access to the University Belt and ease traffic congestion in the cities of Malabon, Navotas, Caloocan and Valenzuela,” the company said.

In June, the TRB also approved toll rate adjustments for the NLEX. Starting June 15, motorists traveling within the NLEX open system have paid an additional P7 for class 1 vehicles, P17 for class 2 vehicles and P19 for class 3 vehicles.

Last month, the regulator greenlit the toll increase at the Subic-Clark-Tarlac Expressway, which is also operated by NLEX Corp.

The operator was allowed to enforce the first tranche of the approved provisional toll rate adjustments starting July 1 to ease the impact on the public. The toll for class 1 vehicles will be P4.62 per kilometer, P9.32 per kilometer for class 2 vehicles, and P13.85 per kilometer for class 3 vehicles.

MPTC is the tollway unit of Metro Pacific Investments Corp., one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — J.I.D.Tabile

PCC conducts market inquiry on proposed BancNet-PCHC merger

August 4, 2023 | 12:31 am

mobile-phone — STOCK PHOTO | Image by Pongsawat Pasom from Unsplash

COMPETITION WATCHDOG Philippine Competition Commission (PCC) is conducting a market inquiry on interbank electronic fund transfer services, as it reviews the proposed merger of BancNet, Inc. and Philippine Clearing House Corp. (PCHC).

“The review entails assessing the impact on competition of the merger, the merged entity’s ability and incentive to increase fees, lower the quality of its services, and reduce innovation, and other possible effects of the transaction (including the effect on quality and reliability of services by InstaPay and PESONet),” the PCC said in a statement.

The competition watchdog said it is important to get feedback from consumers and bank clients who use these interbank fund transfer services as it reviews the BancNet-PCHC merger.

Consumers and bank clients are invited to answer the survey on the PCC website (https://www.phcc.gov.ph) until Aug. 11.

BancNet and PCHC are the clearing switch operators for InstaPay and PESONet.

PESONet is an electronic fund transfer service operated by the PCHC. It is considered as a viable alternative for checks and recurring payments.

Meanwhile, InstaPay is a real-time, low-value payment substitute for cash transactions that is operated by BancNet.

As of June, transactions made via InstaPay and PESONet had risen by 30.6% to P5.93 trillion from P4.54 trillion a year earlier.

Transactions done through the two clearing houses increased by 35.3% to 398 million from 294 million a year ago.

PESONet transactions in the first half were valued at P3.66 trillion, up by 24.4% from P2.94 trillion last year, while the volume of transactions increased by 10.1% to 44.89 million from 40.76 million the prior year.

In the same period, InstaPay transactions were valued at P2.26 trillion, increasing by 41.2% from P1.6 trillion last year, while the volume of transactions jumped by 39.3% to 352.9 million from 253.2 million a year earlier. — RMDO

PLDT net income jumps 22% to P9B

August 4, 2023 | 12:08 am

PLDT Inc. saw a 22.4% increase in its attributable net income to P9.44 billion in the second quarter from P7.71 billion in the same period last year after booking higher revenues and lower operational expenses.

“Despite all the adversities that we have faced in the past, as any business does, I think we are showing a very solid first-half [results],” said Alfredo S. Panlilio, president and chief executive officer of PLDT, at the company’s quarterly briefing on Thursday.

From April to June, the company recorded P51.68 billion in revenues, a 1.4% increase from P50.96 billion in the same period last year.

The company’s total expenses for the second quarter reached P38.64 billion, 30.3% lower than the P55.4 billion incurred in 2022.

“The higher income was basically because of the P900 million rise in revenues combined with the P800 million reduction in operational expenses,” said Danny Y. Yu, senior vice-president and group controller of PLDT, referring to the company’s first-half showing.

In the first half, the company booked P18.45 billion in attributable net income, a 9.9% jump from P16.79 billion in the same period last year.

Its top line rose to P104.04 billion in the first semester, a 3.2% increase from P100.79 billion in 2022.

In its financial highlights, the company said that its service revenues net of interconnection costs was P94.5 billion, 0.9% higher than the P93.7 billion recorded in the first half of last year.

Cash operational expenses, subsidies, and provisions were P42.4 billion in the first six months, a 1.9% decline from P43.2 billion in 2022.

BUSINESS SEGMENTS
In the first half, the individual segment of PLDT registered P40.2 billion in revenues, a 0.2% decline from P40.3 billion last year.

Home segment had the largest revenue growth at 3.1% to P30.1 billion in the first six months from P29.2 billion in the same period in 2022.

Revenues from enterprise business were P23.2 billion from January to June, a 2.7% increase from P22.6 billion last year.

For this year, the company previously gave a service revenue growth guidance of “mid-single digit growth,” however, it was revised to “low-single digit growth” on Thursday.

“We’ve seen some softness in the first semester due to the effects of inflation especially in wireless but I think we are seeing some progress if you look at our quarterly mobile growth from first to the second quarter,” Mr. Panlilio said,

“We’re hoping that the second half will be much stronger than the first half. We’re just being conservative on our projection, but obviously, we’re still aiming for the mid,” he added.

WIRELESS UNIT
After leading the subscriber identity module (SIM) registration based on the percentage of registered SIMs to its subscribers, PLDT wireless unit Smart Communications, Inc. is “aspiring” to regain leadership in the mobile market, after losing its dominant position in 2016, Mr. Panlilio said.

“That’s always been the plan — to regain leadership. It’s very hard to do that because we have very strong competition too,” he said.

As of July 30, or the last day of the grace period allotted for SIM reactivation, the National Telecommunications Commission recorded a total of 113.97 million registrants, which represents 67.83% of the 168.02 million total subscribers.

Out of the total registrants, Smart registered 52.5 million subscribers representing 79.18% of its 66.3 million total subscribers, Globe Telecom, Inc. recorded 53.73 million registrants or 61.94% of its 86.75 million subscribers, and DITO Telecommunity Corp. booked 7.74 million registered SIMs or 51.72% of its total 14.96 million subscriber’s base.

“That’s a 1.2 million difference from the previous 20 million,” Mr. Panlilio said, referring to the market share difference after the SIM card registration run.

“We’re trying to increase average revenue per user and bring value-adding offers making sure we are able to address their requirements. Our job is how we can grab market share eventually from them,” he said.

At the stock market on Thursday, PLDT rose 0.38% or P5 to P1,310 per share.

ACEN expansion lifts income by 24% to P2 billion

August 4, 2023 | 12:07 am

AYALA-LED ACEN Corp. reported an attributable net income of P2.21 billion in the second quarter, up 24.2% from a year ago, boosted by its renewables expansion.

“Our growth continues to be robust midway through 2023. We’ve made considerable progress with the continued ramp-up of our projects, helping provide much-needed supply to the Philippines and across the region,” Eric T. Francia, president and chief executive officer of ACEN, told the stock exchange on Thursday.

For the April-to-June period, ACEN said its consolidated revenues surged to P11.33 billion, 32.2% higher than the P8.57 billion in the same period last year.

“We continue to expand our funding sources and optimize ACEN’s capital structure, while keeping track of our leverage ratios, as we aggressively pursue new investments in line with our growth aspirations,” said Maria Corazon G. Dizon, chief finance officer and compliance officer.

In the first semester, ACEN’s net income attributable to the parent company reached P4.23 billion, up by 94% compared with P2.18 billion in the corresponding period in 2022.

The energy company said its profit rise signifies recovery from the headwinds it experienced in 2022.

“The company’s strong performance was accompanied by a rise in overhead, as ACEN ramped up manpower in support of the acceleration of its renewables expansion,” it said.

Consolidated revenues for the January to June period also expanded posting a 28.2% increase to P20.47 billion from P15.97 billion a year ago

The energy company of the Ayala group attributed its revenue rise to the increase in net generation, which it said was driven by a “stronger wind regime throughout the period and higher operating capacity with testing and commissioning of new projects.”

The boost in net generation allowed the company to reach a net selling merchant position along with strong prices at the Wholesale Electricity Spot Market (WESM), ACEN said.

For the January-to-June period, ACEN’s attributable EBITDA or earnings before interest, taxes, depreciation, and amortization from nonconsolidated operating associates and joint ventures went up by 20% to P9.4 billion.

ACEN said its Philippine operations contributed P4.1 billion to EBITDA, 48% higher than a year ago, while its international EBITDA expanded 17% to P5.5 billion due to “stronger wind resources” with the ongoing commissioning of its 521-megawatt direct current (MWdc) New England solar farm project in Australia.

ACEN said its combined attributable renewable energy output posted double-digit growth to 2,052 gigawatt-hours (GWh) in the first six months of the year.

In the Philippines, ACEN’s renewable energy generation registered a 30% increase to 568 GWh, which it attributed to the commissioning of its 160-megawatt Pagudpud wind farm in Ilocos Norte and the 44-MWdc second phase of its Arayat-Mexico solar farm in Pampanga.

Meanwhile, the company’s international portfolio generated 1,483 GWh, up by 17% from a year ago, fueled by robust wind resources in Vietnam and improved operations in Indonesia.

ACEN has around 4,200 MW of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. The energy company is targeting to expand its renewable energy portfolio to 20 GW by 2030.

“We continue to be at the forefront of the global energy transition as we actively establish new partnerships and grow existing relationships in order to deliver reliable and sustainable power to the markets we serve. We are confident that these opportunities will allow us to move ever closer to our ACEN 2030 aspirations and beyond,” said Jonathan P. Back, the company’s chief strategy officer.

At the local bourse on Thursday, shares in the company gained 29 centavos or 5.79% to close at P5.30 apiece. — Ashley Erika O. Jose

9 Works Theatrical counts the many reasons to see tick, tick… Boom!

August 4, 2023 | 12:07 am

08-TTB-Cast-copy — THE CAST of Jonathan Larson’s tick, tick... Boom! (clockwise from the foreground, right): Khalil Ramos, Jef Flores, Kayla Rivera, Vien King, Reb Atadero, and Tanya Manalang.

By Giselle P. Kasilag

THERE are many reasons to watch Jonathan Larson’s tick, tick… Boom!, and just as many reasons to watch it multiple times. Set in 1990s New York, this semi-autobiographical musical tells the story of an aspiring composer, Jon, who is wondering if he should continue chasing after his dreams or cut his losses and turn to more traditional and stable career options.

Anyone of any field who has experienced doubt about pursuing their passion must watch what should be described as necessary theater. It delves into the existential crisis of every human being with a dream must navigate.

Director Robbie Guevarra, however, is adding more reasons to see 9 Works Theatrical’s upcoming performance of the award-winning musical at least eight times. He has put together a stellar cast of six for a show, with three characters. Jef Flores and Khalil Ramos will take on the lead role of Jon. Tanya Manalang and Kayla Rivera are alternating as Susan. Vien King and Reb Atadero are performing as Michael. But this is not a Cast A alternating with Cast B scenario. There is no set trio per show. Instead, the cast will be switched up and will be able to perform with all the other actors except for the one they are sharing the role with.

“There will be eight combinations,” explained Mr. Guevarra. “We have 11 shows at the moment. Three of those combinations will repeat.” The primary reason for this unusual setup was the COVID-19 pandemic. Having two sets of casts would ensure that the shows need not be canceled if someone gets sick. But having the actors able to perform with any combination of the cast is an added layer of security that the show can go on for as long as one actor playing each character is healthy.

“It’s so much fun because it trains me not to go on autopilot,” said Ms. Manalang. “It’s always a different energy every time. It’s a different person so physically pa lang (gesturing at the height difference between the two actors), there are some things I do easily with Khal but with Jef, I have to be creative about it and be comfortable with it. I like it that it keeps me thinking on my toes and that’s just how life is. You don’t plan things ahead. It makes it more real in that sense.”

Indeed, the pandemic and the lockdowns informed many of the decisions related to the staging of tick, tick… Boom!, foremost of which was the choice to bring it back in the first place.

Managing director Santi Santamaria was adamant about starting small after the pandemic. Being material that they were familiar with and having only three characters made it an easy choice. But Mr. Guevarra also felt that the script itself was timely.

“When we decided to do this again, I was asking myself, aside from the pragmatic reason that we wanted to start small, I looked for what can this show contribute to society. There’s always a purpose to our shows. It was a way of showing how we live our lives because it’s not very foreign. Even though this is set in New York where the pressure is bigger and where they’re literally small fish in a huge ocean — here it’s a pond and you have big fish. They’re big fish already in the pond and that’s great, but we still all have our struggles. And I just wanted to show the world that this is what we go through. There are people out there who still think theater is a hobby,” he shared.

This challenge could not have been more evident during the global lockdowns. With people stuck in their homes, many turned to the arts to survive the mental toll of the pandemic. And yet most artists are unable to live financially secure lives solely on their art. Thus, the struggle between artistic and commercial pursuits which is as the heart of tick, tick… Boom! presents itself in a most timely fashion.

“Does it always have to be at odds? Not necessarily,” explained Mr. Atadero. “But in a country like ours, the question is do you feed your stomach, or do you feed your soul? Of course, if you have to function as a person, you have to feed your stomach. That’s why we do a lot of corporate gigs, we do a lot of singing engagements. We do these things in order to be able to sustain [ourselves] while feeding our souls. Pagod ka nga lang (You get tired), but I remember this quote from one of my mentors before: Lahat tayo napapagod. Choice mo kung mapapagod ka nang masaya o malungkot (We all get tired. It’s your choice if you get tired while being happy or if youget tired while being sad).”

Indeed, at times, the script reads like the story of their own lives. All the cast members at some point in their journey found themselves in the same position as their characters.

Mr. Flores, like Jon, is a musician and a composer and has identified strongly with the challenges that his character faces.

“There comes a point where when you’re a kid you want to be a pop star. But pop stars are very young. And then when you’re older, you’re just a washed-up pop star. And so I’m getting to the washed-up age without ever actually hitting my pop star status. So that’s how I relate to the role. As a musician, I can vibe with a lot of things being said. So I bring a lot of myself into the role, for sure,” he admitted.

Mr. Ramos, who alternates with Mr. Flores, cited the pressure as the aspect of Jon’s character that he relates to the most.

“It’s the anxiety that the artist faces in this crazy, crazy industry,” he disclosed. “I’ve been in show business for 12 years now and it’s vastly changed over the past three or four years and I’m sure you guys know how much it has changed after the pandemic. We, artists, were forced to do other things outside of our comfort zone. We started to become content creators to try and adapt to the changing scene. And that’s what I’m going through as an artist. All my projects were canceled. I didn’t know where to find work. We had to choose different paths but in my head I would always think, ‘I don’t want to sell out!’ It’s always been a battle for me. This year, I’m very thankful that we can do these things again after the restrictions were eased. But I am faced with the same anxieties that John faced. When this is all back to normal with all the new artists, who am I now? I’ve been here for 12 years. What else can I bring to the table?”

Susan, a dancer, is on the edge of throwing in the towel and moving away from her dream and beginning a quiet life to build a family. Ms. Rivera confessed to having moved away for a time just to be in that quiet and stable environment that her character, Susan, longs for.

“I went back to school. I was working in a car dealership as a receptionist in Canada. So, I took that time to veer away from the creative track. And that’s really like what Susan is wanting [to do]. She teaches dance and she’s a dancer herself, and she had these big dreams. But she comes to a point where she realizes that ‘I want a family. I’m okay living away from the city and having a more simple way of living.’ So that’s how I relate to Susan. And at this point in my life as well, even though I’m performing and I also do radio, but at the same time at this point in my life I feel like I’m also getting there. I’m 30 so that’s not too far away as well in terms of having a family,” she shared.

Michael, the pragmatist, is no stranger to Mr. King. He shares the challenges that his character faces on a daily basis.

“The thing I can relate to my character [over] is the struggle of being an artist,” he said. “It’s really hard like, for me, I have lots of responsibilities to my family. And this is my passion and it’s really hard for me to stay in this industry. At one point in my life, I really tried looking for a corporate job. So I think those [are] layers that I can really put [on] the table — that experience at that point in my life — [for] my role because I am just happy right now that I’m still here doing what I love to do and giving security to my family as well.”

Clearly, tick, tick… Boom! has resonated with the cast on so many levels. And this is precisely why they are confident that the audience will be able to relate to one or all of the characters, depending on where they are in their life journey.

“This is supposed to be set in 1990 but it’s still relevant today” declared Mr. Atadero. “The technology is different but the story is still a very human story of how far you’re willing to go, to stretch yourself out, to try and reach for something that could be an impossible dream.”

tick, tick…BOOM! will have performances every weekend of August at 3 and 7:30 p.m., on Saturdays and Sundays, at the Carlos P. Romulo Auditorium, RCBC Plaza in Makati. Tickets are now available via ticket2me.net.

San Miguel unit posts flat first-half net income

August 4, 2023 | 12:06 am

SAN MIGUEL Food and Beverage, Inc. (SMFB) reported a consolidated net income of P18.8 billion in the first semester, which the listed manufacturer described as “steady” amid a challenging market environment.

No comparative figure was given by the company but it previously reported the same profit figure a year ago.

In a media release on Thursday, it said revenues in the first half were hit by the rising cost of raw materials, an increase in excise taxes, and elevated logistics costs.

“As uncertainties and risks to the economic environment remain, we will continue to take the necessary actions to mitigate the impacts on each of our businesses, including leveraging on each of our strengths to improve overall performance,” Ramon S. Ang, president and chief executive officer of SMFB said.

“We will continue to invest in building our brands and strengthening our portfolio in order to position SMFB for long-term sustainable growth,” Mr. Ang added.

Its consolidated revenues during the first semester rose by 7% to P184.6 billion due to the combination of volume growth and an efficient pricing strategy.

The company’s beer business, San Miguel Brewery, Inc. recorded a 26% increase in its consolidated net income in the first half to P13.5 billion on the back of strong sales.

Its consolidated sales during the period rose by 14% to P74.1 billion because of improving demand from domestic and international markets.

Revenues from domestic operations went up by 13% to P66 billion, driven by a 9% increase in volumes.

The company said that volume growth was due to the recovery of on-premise channels, resumption of tourism activities, relevant brand campaigns, intensified off-take generating programs, and other initiatives.

In international markets, its revenues increased by 16% after a strong export demand, as well as its Hong Kong, and Thailand markets.

Additionally, spirits unit Ginebra San Miguel, Inc. (GSMI) booked a net income of P4.1 billion, 64% higher than the prior year boosted by volume growth resulting from “strategic marketing campaigns.”

Volumes during the first half inched up by 1% year on year to 22.2 million cases.

“Through well thought-out strategies and campaigns, GSMI has continued to stay on top of its market, and has become a reliable performer and contributor to total San Miguel Group performance. With the initiatives it has launched, we’re looking to further build on its momentum and continue performing well for the rest of the year,” Mr. Ang said in a separate statement.

During the six-month period, the unit’s revenues climbed by 10% to P25.4 billion due to better selling prices.

The company said that its campaign, “Iba and Ngiti Ngayon sa One Ginebra Nation” and a consumer promo in March, sustained brand equity and spurred consumption, “cushioning the effects of a price increase implemented for all GSMI products.”

It added that on-the-ground events also boosted awareness and brought its brands to consumers, coupled with penetration drives and sampling activities in resorts and popular on-premise outlets.

“This was further supported by four pocket launches and 50 bar activations in major cities,” the company said.

Meanwhile, San Miguel Foods, Inc. saw revenues at P85.1 billion as “it continuously provided cost-conscious consumers what they want amid headwinds from higher raw material costs.”

On Thursday, SMFB shares went up by 0.1% or five centavos to close at P50.05 apiece while those of GSMI shares slipped by 0.25% or P0.40 to P158.60 each. — Adrian H. Halili

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