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Converge plans up to P17-B capex for 2024

CONVERGE ICT Solutions, Inc. announced on Thursday its plans to allocate a budget ranging from P15 billion to P17 billion in 2024 to complete investments in subsea cable systems.

“That would include about P7 billion to P8 billion of payments in IRU (indefeasible right of use) capacities to complete our investments in Asia Pacific and Trans-Asia subsea cable systems,” said Christine Renee R. Blabagno, deputy chief finance officer of Converge, during a media briefing.

“The balance of that will be split between access investments, which we still consider to be a large part of that balance, and then to our backbone and the balance to our other investments particularly digital infrastructure,” she said.

Converge is part of two consortiums of telecom and digital companies that are building the Bifrost Cable System and the Asia Pacific SEA-H2X Submarine Cable System.

Bifrost is a transpacific cable system connecting Singapore, Indonesia, the Philippines, Guam, and the west coast of the United States, according to the official website of Submarine Cable Networks, a provider of consulting services for submarine optical.

On the other hand, SEA-H2X or South-East Asia Hainan-Hongkong Express is a submarine cable system connecting Hong Kong SAR China, Hainan China, the Philippines, Thailand, Malaysia, and Singapore.

Ms. Blabagno said that the company’s spending remains consistent with its full-year guidance, ranging from P12 billion to P15 billion.

“Capex (capital expenditure) remains to be in line with expectations of P12.5 billion for this. By June, we had installed around 800,000 fiber ports in new areas with around 300,000 ports still expected to be deployed in the remainder of the year,” she noted.

“In 2025, we expect cash capex to be even less than the 2023 levels assuming no (new) opportunities are taken up.”

Converge recorded a second-quarter net income of P2.11 billion, marking a 6.7% increase from last year’s P1.98 billion, attributed to subscriber growth and enhanced cost of services.

“[The increase in profit is because] of the growth of the number of subscribers from that period as well as improvement in the accounting treatment on network materials and inventory,” said Ms. Blabagno.

The company’s changes in accounting treatment include the adjustment of the depreciation life of its ICT equipment, which, according to Ms. Blabagno, has improved the cost of services.

For the second quarter, the company’s cost of services amounted to P2.86 billion, marking a 13.6% decrease from the P3.31 billion recorded in the same period the previous year.

From April to June, the company’s topline reached P8.72 billion, indicating a 5% increase from P8.31 billion in the corresponding period of 2022.

The company’s first-half bottomline was P4.28 billion, representing an 8.5% increase from the net income of P3.95 billion reported last year.

Total revenues for the first six months amounted to P17.36 billion, reflecting an 8.1% increase from the P16.05 billion recorded in 2022.

Converge’s cost of services was 10.4% lower at P5.67 billion compared to P6.33 billion in the corresponding period the previous year.

The company sustained growth in net additions during the first half, achieving consolidated net additions of 92,000, which brought the company’s total subscriber base to 1.97 million. 

“We have sustained our growth with our newly opened area particularly in Northern Luzon, Visayas and Mindanao contributing more to our subscriber base. Converge remains to be the fastest growing broadband services provider in the country,” said Dennis Anthony H. Uy, co-founder and chief executive officer at Converge.

On Thursday, shares in Converge declined 15 centavos or 1.6% to P9.22 apiece. — Justine Irish D. Tabile

Birdee takes flight for Asia

TO fully spread her wings as a rising artist, Birdee Sideris (artist name: BIRDEE) knew that she had to perform in Asia.

With shows slated for Aug. 11 at the Venice Grand Canal Mall in Taguig, and Aug. 12 at the Lucky Chinatown Mall in Manila, the Sydney-based singer is looking forward to bringing her music to a new audience with the hope that it resonates with people and helps them feel less alone.

Take, for instance, her newest single, “Best Mistake I Never Made,” just one of the many alternative electro-pop earworms that she has helmed. Its dreamy and atmospheric soundscape is paired with contemplative lyrics about setting boundaries in a relationship.

The chorus then crashes in with an electronic immediacy, powerful synths, and thumping kick drums, giving a euphoric feeling of a close escape.

“I want BIRDEE’s identity to be an artist who spreads love and goodness and forms connections no matter the race or gender or sexuality,” she told BusinessWorld in a virtual interview.

“I’m particularly excited about this Asia tour because, coming from an Asian background with my mum being Malaysian-Chinese, I’ll be able to reach people who are part of my culture,” she added.

Ms. Sideris takes pride in her Chinese, Greek, and Russian origins, which she has used to craft her own sound and aesthetic. Her artist name includes her Chinese given name, Wang Wei.

The singer-songwriter, originally from rural Parkes in New South Wales, Australia, splits her time as a dedicated musician and an Aged Care worker.

“I have been a performer since the age of three, playing piano and dancing, so being on stage is second nature to me,” she said.

Her music style ranges from alternative indie pop to electronic pop and she has a wide range of influences that include Jorja Smith, Lana del Rey, and Still Woozy. This is because of her love for “expanding and getting out of the comfort zone.”

Collaborations are also on her mind, with Filipino R&B pop singer Denise Julia on her list of people she would love to work with.

“I’m drawn to alt-pop because there’s so many outlets and ways of making it. There’s no one kind of sound, so I can be creative,” she said.

The Asia leg of her On My Own tour started on Aug. 9 in Manila and will conclude on Sept. 16 in Singapore. Her latest single, “Best Mistake I Never Made,” is out on all digital music platforms worldwide. — Brontë H. Lacsamana

Cebu Air bounces back with P2.67-billion profit

CEBU AIR, Inc. announced on Thursday that it turned around from a P1.89-billion loss last year to a P2.67-billion net profit in the second quarter, propelled by a significant boost in passenger revenues.

“The past few months have been one of the toughest for Cebu Air, but we remain steadfast in our commitment to provide safe, reliable, and affordable flights to our passengers and support economic growth in the Philippines and across the region,” Alexander G. Lao, Cebu Air president and chief executive officer, said in a statement.

From April to June, the company’s top line reached P22.67 billion, marking a 62.3% increase from last year’s revenues of P13.97 billion during the same period.

“This is on the back of over 36,300 flights flown during the quarter, which was 22% higher year on year but 1% below the same period in 2019,” the company said.

Passenger revenues, totaling P15.84 billion, constituted the majority of Cebu Air’s second-quarter top line, reflecting an 86.3% increase compared to last year’s passenger revenues of P8.51 billion.

The company saw a 49.7% decline in cargo revenues, which amounted to P866.9 million, down from P1.72 billion in the same period the previous year.

Throughout the quarter, the company transported 5.46 million passengers, marking a 29% increase compared to the previous year.

Additionally, the company observed an improvement in its average seat load factor, which reached 86% for the second quarter, up from 77% a year ago.

The company’s expenses for the quarter reached P20.15 billion, an increase of 20% from P16.79 billion expenses last year.

For the first semester, the company achieved an attributable net income of P3.75 billion, marking a turnaround from the P9.5 billion net loss incurred last year.

Cebu Air’s top line more than doubled to P43.55 billion during the first six months of the year, up from P20.68 billion in the corresponding period last year.

“The overall increase in revenues was primarily driven by significant increase in passenger volume and flight activities due to the increased demand for travel,” the company said in its financial report.

It added that the relaxed alert level classification for most parts of the country allowed it to resume its regular pre-pandemic services.

Expenses from January to June were P39.79 billion, a 38% increase from the P28.84 billion expenses booked in 2022, which it attributed to the increase in the company’s operations. — Justine Irish D. Tabile

Entertainment News (08/11/23)

CCP launches comics, animation, games

THE CULTURAL Center of the Philippines (CCP) is launching completed digital projects under its Comics, Animation, and Game Development Grant Program. The two comics, three animations, and three games that will be unveiled on Aug. 12 at the Philippine International Convention Center (PICC) received development funding last year. The program aims to generate content “reflecting the country’s rich cultural heritage of folktales, myths, and legends.” The game development grantees are: Ranida Games’ Sinag, a 1v1 fighting game that features Philippine mythology; Synthillate’s Pearls of Asia, a Philippine business simulator that showcases strategies from renowned Filipino personalities; and Kendikorp’s Gala, a casual exploration mobile game featuring iconic Filipino landmarks. The comics grantees are: Randy Valiente’s Lalang Kalibutan, which tells the story of how the world was created from the Visayan point of view, and Ruel Enoya’s Bantugen, an adaptation from the Maranao epic Darangen. Other digital projects to be launched are: Bernardo Carpio, a digital Pinoy comic with augmented reality; Bulusan and Agingay: Iyak ni Mampak, a stop-motion animation film; Sulayman, a 2D digital animation; and Lola Basyang, The Animation.

QCinema launches first project market

QCINEMA International Film Festival provides another opportunity for Filipino and Southeast Asian (SEA) filmmakers to reach a global audience as it launches the QCinema Project Market (QPM), a platform for filmmakers and producers to secure funding, expand their networks, gain exposure, develop their skills, and contribute to the growth of the international film industry. Over P15 million in grants will be available. Quezon City Film Development Commission Executive Director Liza Diño-Seguerra said in a statement: “In recent years, the region has shown impressive growth in its filmmaking, with high production values that rival international standards. This is evident in the diverse co-produced film projects between the Philippines and SEA showcased at major festivals like Autobiography of Makbul Mubarak (Indonesia, Singapore, Philippines), In My Mother’s Skin (Philippines, Singapore, Taiwan), Arnold is a Model Student (Thailand, Philippines, Singapore). With QPM, we get to support projects like that from the region and introduce them to funding and one-on-one networking opportunities so we can see their stories on the big screen.” Filipino and Southeast Asian filmmakers with projects in advanced stages of development are invited to participate. To be eligible to join the program, the filmmaker must have at least a draft of the full script of a feature-length fiction film project. The film must also not yet be completed by the time QCinema 2023 commences and must not be fully financed yet. Southeast Asian directors with at least one short of feature film may apply. Deadline of submission of entries is Sept. 15. Fifteen entries will be chosen to participate in the film market, slated from Nov. 18-20, in conjunction with the QCinema International Film Festival. For details on the requirements and for more information, visit the QPM website at https://qcinema.ph/grant/project-market/.

FEU Chorale presents Pasasalamat concert

THE FAR EASTERN UNIVERSITY (FEU) Chorale will give thanks and celebrate their talents at the FEU Auditorium with a concert titled Pasasalamat on Aug. 12. It will serve as a homecoming celebration for the group following their participation in the recently concluded 2nd Asia Choral Grand Prix in Bali, Indonesia, where six choirs from Spain, Malaysia, Taiwan, Indonesia, and the Philippines battled in this competition of winners. Two weeks before leaving for Bali, the FEU Chorale also competed in the Sing, Tarlac, Sing Choral Festival in Tarlac City and won a Gold Diploma, the Best in Folk Song Category, and the Second Prize. For Pasasalamat, the FEU Chorale will sing contemporary songs, folk songs, and sacred contemporary pieces, which they also performed in the Tarlac and Bali competitions. The concert will be at 6 p.m. on Aug. 12. Tickets, which cost P500 and P250, are available at the FEU Center for the Arts and the FEU Chorale’s FB page.

Daryl Hall to hold PHL concert in November

SINGER-SONGWRITER Daryl Hall, known as half of the iconic duo Hall & Oates and recognized as one of the best soul singers of the 1970s and 1980s, is set to perform live in the Philippines. Together with Daryl’s House Band and Todd Rundgren as a special guest, he will be having a concert on Nov. 27 at the Mall of Asia Arena. The last time he performed in the Philippines was in 1991. Mr. Hall was inducted into the Songwriters Hall of Fame in 2004 and the Rock and Roll Hall of Fame in April 2014. Promoted by Ovation Productions, tickets to the concert are now available at smtickets.com with prices ranging from P2,750 to P15,750. For more details and updates, check the official website and Facebook Page of Ovation Productions at https://ovationproductionsmanila.com/ and https://www.facebook.com/ovationproductions/.

Little Mermaid star Halle releases debut single

ASIDE from playing the iconic role of Ariel in The Little Mermaid and garnering four Grammy Awards as part of the R&B duo Chloe x Halle, Halle Bailey is now pursuing a solo music career as Halle. She has released her debut single, “Angel,” produced by Grammy Award-winning producer, songwriter, and composer Theron “NeffU” Feemster. The song blends a silky R&B groove with orchestral arrangements. The 23-year-old singer-actress delivers vocals to give life to lyrics like: “Heaven knows your wings can weigh you down, but angels make a way somehow.” The track stems from the feelings of doubt upon being cast as a Disney princess and the differing opinions that arose from it, with the hope that “other brown and black girls and everyone in general feel embraced, respected, and inspired hearing the words of this song,” Ms. Halle said in a statement. It is accompanied by a music video directed by Wendy Morgan and is available on all digital music platforms worldwide.

Hong Kong-based rapper J-Hoon drops new album

CRITICALLY acclaimed hip-hop producer and rapper J-Hoon has released his sophomore album, the 14-track Noodles II, where he documents a decade of witnessing social instability, chaos, and fear in his hometown, Hong Kong — a city that has struggled to retain its degree of independence. “You could say that it’s my love letter to the bustling city, a poetic unravelling of its beautiful and ugly side amidst the crumbling terror of political conflict. It’s also diarist in tone and very much contemplative,” the singer said in a statement. “I didn’t know that I would be this brave to open up about my encounters in life, where stories and emotions sometimes get the best of me.” As a comeback album, it also shows J-Hoon’s looser yet more collected take on hip-hop, boom bap, jazz, trap, neo-soul, IDM, and electronic music. The album is available on all digital music platforms worldwide.

New virtual talent agency unveils virtual talents

BRAND New Company’s newest intellectual property, a virtual talent agency dubbed HEYU, has introduced their first generation of “virtual talents” or Vtubers, a three-piece music group named RE:NEGADE. An online personality behind a virtual avatar, known as a Vtuber, was an innovative form of entertainer that emerged during the COVID-19 pandemic. In the current landscape of online content creation, they “maximize fan interactivity and near-limitless creativity,” according to Brand New Company. RE:NEGADE is composed of Jacki3, a Rebel Robot Rapper (a former deceased person), Ru VII, a Vampire Sorceress Rockstar, and Gemi9, a Siren Songstress Seeking Solace (who is not a mermaid). They will be regularly streaming content as well as releasing songs through HEYU’s official YouTube channel (https://www.youtube.com/@HEYUteam).

Megaworld posts P7.9-B income, cites stronger demand

MEGAWORLD CORP. announced on Thursday an attributable net income of P7.9 billion for the first half, marking a 34% increase from P5.9 billion, driven by growing demand in the properties sector.

In a media release, the company said that its consolidated revenues for the six-month period reached P32 billion, reflecting a 17% growth compared to the previous year, as all core businesses demonstrated robust performance during the period.

“Our steadfast focus on our township model allowed us to sustain our strong performance into the second quarter of the year,” Megaworld Chief Strategy Officer Kevin L. Tan said.

The company did not give out its second quarter earnings.

“With increasing demand for residential and commercial properties outside Metro Manila, we have properly positioned ourselves to achieve growth through strategic land banking,” he added.

“We also worked doubly hard in coming up with new, innovative, and sustainable product offerings in order to further strengthen our leadership as a pioneering real estate company.”

The company saw a 12% increase in real estate sales for the six-month period, reaching P19.1 billion, driven by a higher completion rate during the period.

Reservation sales for the first semester surged by 49% to P76.1 billion, constituting 59% of the company’s year-end reservation sales target of P130 billion.

“During the first half of the year, the company saw a strong uptick in the demand for residential projects in two Taguig townships, particularly in McKinley West and Uptown Bonifacio,” the company said.

Megaworld recorded project launches worth P28.2 billion in the first half of the year. Revenues from leasing increased by 17% to P8.8 billion, driven by a stable office segment and ongoing recovery in mall rental income.

Within its office segment, Megaworld Premier Offices achieved a 4% rise in rental income, reaching P6.3 billion compared to the previous year’s P6 billion, attributed to new transactions and rising rental rates. Business process outsourcing firms remained significant contributors to this segment.

In the mall unit, Megaworld Lifestyle Malls reported a 71% surge in revenues to P2.5 billion, fueled by higher rents and increased consumer spending.

Megaworld Hotels & Resorts saw a 58% growth in top line revenue, reaching P1.7 billion, driven by the recovery of tourism and mobility, particularly in the Newport City and Twin Lakes townships.

Currently, the company boasts a portfolio of 30 master-planned integrated urban townships, integrated lifestyle communities, and lifestyle estates.

On Thursday, Megaworld’s shares dropped by 2.84% to P2.05 apiece. — Adrian H. Halili

Disney CEO reaches out to striking Hollywood creatives with ‘deep respect’

This as Hollywood writers show unity and anger on picket lines as strike reaches 100th day

LOS ANGELES — Walt Disney Chief Executive Officer (CEO) Bob Iger on Wednesday said he was committed to finding a solution to the Hollywood writer and actor strikes, citing his “deep respect” for creative professionals, as he signaled a turn from comments that inflamed tensions last month.

Mr. Iger last month told striking actors that their demands were “not realistic.”

The Hollywood writers’ strike entered its 100th day on Wednesday with contract talks stalled and people on the picket lines protesting what they say is a disregard for their demands. The actors’ strike started less than a month ago.

The growth of artificial intelligence (AI) has been a key issue for union members, who fear that it could replace their creative input.

“Nothing is more important to this company than its relationships with the creative,” Mr. Iger said on a call discussing Disney’s quarterly results on Wednesday.

“I have deep respect and appreciation for all those who are vital to the extraordinary creative engine that drives this company and our industry,” he said.

Mr. Iger, who returned to Disney as CEO last year, did not say how he would help bring the strikes to an end.

In July, Mr. Iger angered members of both unions by saying that the demands of the SAG-AFTRA actors union for a labor contract with higher pay and limits on use of artificial intelligence were “not realistic.”

Emmy-winning Breaking Bad actor Bryan Cranston about a week later took aim at Mr. Iger in remarks to striking actors, saying: “We don’t expect you to understand who we are, but we ask you to hear us. And beyond that, to listen to us when we tell you, we will not be having our jobs taken away and given to robots.”

Under Mr. Iger, Disney has created a task force to study artificial intelligence and how it can be applied across the company, Reuters reported on Tuesday.

100 DAYS
The Hollywood writers’ strike marked 100 days on Wednesday with contract talks stalled and people on the picket lines protesting what they describe as a disregard for their demands.

The strike began on May 2 after negotiations between the Writers Guild of America (WGA) and the major studios reached an impasse over compensation, minimum staffing of writers’ rooms, and residual payments in the streaming era, among other issues.

Writers also sought to regulate the use of artificial intelligence, which they fear could replace their creative input.

Entertainment industry executives have been trying to navigate the crosscurrents of declining television revenues, a movie box office that has yet to return to pre-COVID levels, and streaming businesses that are largely struggling to turn a profit. “We are in some uncharted waters,” Warner Bros Discovery Chief Executive David Zaslav told investors last week, as the company warned that uncertainty over labor unrest in Hollywood could impact the timing of the company’s film slate and its ability to produce and deliver content.

Actors represented by the Screen Actors Guild (SAG) went on strike on July 14 also over pay and artificial intelligence, effectively halting production of scripted television shows and films and impacting businesses throughout the entertainment world’s orbit. It is the first time both unions have gone on strike since 1960.

A meeting last week to discuss resuming talks between the WGA and the Alliance of Motion Picture and Television Producers (AMPTP), the group representing the major studios in negotiations, resulted in no firm date for returning to the bargaining table.

The WGA sent a message to its 11,500 members later that same day, complaining about details leaking from the confidential session, but asserting the guild’s negotiating committee “remains willing to engage with the companies and resume negotiations in good faith.”

The WGA did not respond to requests for comment for this story, and the AMPTP declined comment.

‘BLOWN AWAY’ BY SOLIDARITY
Out on the picket lines this week, resolve mixed with anger.

“We are in it until we get the deal we need and deserve, but we can’t help but be discouraged by the attitude that we’re getting from the AMPTP,” said Dawn Prestwich, whose credits include the TV drama Chicago Hope. “The indifference, and in some ways, it’s sort of outright cruelty.”

Ms. Prestwich said studio executives are supposed to be writers’ creative partners, as they have in the past.

“This business is changing now,” she said. “It doesn’t feel like a human business now.”

The three-month-long strike has occasionally taken on the rhetoric of class warfare, with writers assailing the media executives’ compensation. Walt Disney Chief Executive Bob Iger, fresh off a contract extension that gave him the opportunity to receive an annual incentive bonus of five times his base salary, was criticized for calling the union demands “just not realistic.”

“Look, I think we can take them at their word. I think they wanted to wait us out, they wanted to starve us out and I think they wanted us to be broken,” writer Celia Finkelstein said out on the picket line.

As with past writers’ strikes, this job action responds to Hollywood capitalizing on a new form of distribution — and writers seek to participate in the newfound revenue.

The first strike, in 1960, revolved around writers and actors seeking residual payments for showing old movies on television. Two decades later, writers walked off the job in 1985 to demand a share of revenue from the booming home video market.

The 100-day strike in 2007-08 focused, in part, on extending guild protections to “new media,” including movies and TV downloads as well as content delivered via ad-supported internet services.

“I did a 100 days in ’07 and this is decidedly different,” said writer Ian Deitchman on the picket line.

“I am so blown away by the solidarity that I feel out here and the strength. I hope that the companies are starting to realize that the longer they make us walk in the heat, the angrier we get and the stronger we get, not the weaker.”

This time around, a central issue is residual payments for streaming services, though demands for curbs on emerging AI technology have also gained importance. Reuters reported that Disney has created a task force to study artificial intelligence and how it can be applied across the entertainment conglomerate, signaling its importance.

“When technologies create new revenue streams, workers want a share of that revenue. Period,” said Steven J. Ross, a professor of history at the University of Southern California. “When it comes to artificial intelligence, it is an existential crisis. They have the potential of losing their jobs forever.” — Reuters

Manila Water’s Q2 profit soars 51.6% to P2.76B

MANILA WATER Co., Inc. reported a second-quarter (Q2) net income of P2.76 billion on Thursday, marking a 51.6% increase from the P1.82 billion reported a year ago, driven by higher revenue during the period.

In a stock exchange filing, the water concessionaire for the east zone disclosed gross revenues of P8 billion for the April-to-June period, reflecting a 39.9% increase from the P5.72 billion reported last year.

The company’s gross expenses saw a slight 12% increase to P3.91 billion for the second quarter, compared to P3.49 billion in the same period last year.

For the January-to-June period, Manila Water’s attributable net income grew by 72.9% to P5.05 billion from a previous profit of P2.92 billion.

Gross revenues for the first semester climbed to P15.39 billion, marking a 41.7% rise from the P10.86 billion registered a year ago.

However, the company’s gross expenses increased to P7.69 billion in the first half, a 15.6% rise from P6.65 billion in 2022.

Year to date, the total attributable billed volume increased by 2% to 651.8 million cubic meters from 637 million cubic meters the previous year.

For the first half, Manila Water’s combined billed connections increased by 3% to 1.31 million from 1.27 million in the same period last year.

At the local bourse on Thursday, shares of the company gained 24 centavos or 1.25%, closing at P19.40 apiece.

Manila Water serves the east zone network of Metro Manila, covering Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City, and Manila, as well as several towns in the nearby Rizal province. — Ashley Erika O. Jose

Disney hikes streaming prices, focuses on costs as Iger moves to reassure investors

WALT DISNEY CEO Bob Iger acknowledged that the entertainment company faces a “challenging environment” in the near term on Wednesday, but he emphasized progress in cutting costs and focusing on creativity, even as quarterly results showed Disney’s soft spots.

Disney’s stock rose nearly 3% in after-hours trading, as Mr. Iger touted $1 billion in operating-income improvement at the company’s streaming business over the last three quarters, which is aiming for profitability in 2024.

But he also acknowledged the need to improve the quality of Disney’s films, to position the company’s flagship sports brand, ESPN, for streaming directly to consumers, and to resolve the writers’ and actors’ strikes in Hollywood that have halted much film and television production.

“I returned to Disney in November, and I’ve agreed to stay on longer, because there was more to accomplish before our transformation is complete,” Mr. Iger said, describing a “challenging environment in the near term.”

The company beat Wall Street’s profit expectations for its fiscal third quarter and said it was on track to cut costs by more than the $5.5 billion it promised investors in February.

Disney also posted quarterly revenue below expectations and fell slightly behind analyst projections for US subscribers of Disney+.

The media conglomerate said it will raise by 27% the price of the ad-free tier of the Disney+ service to $13.99 and hike by 20% the no-ad version of Hulu.

Looking for ways to attract and retain subscribers in a competitive streaming market, Disney also announced it would launch ad-supported streaming in Europe and Canada and provide US subscribers with a new, ad-free package in coming months.

Iger said he would address the issue of password sharing next year, echoing Netflix.

He said Disney will reduce the number of titles it releases and also the cost per title.

REVENUE JUST MISSES
Disney said it cut losses at its streaming video services to $512 million in its fiscal third quarter from about $1.1 billion a year ago.

It added 800,000 Disney+ subscribers, 100,000 subscribers shy of analyst estimates, and shed 12.5 million subscribers to the Disney Hotstar service in India, or nearly a quarter of its subscribers, as it gave up rights to Indian Premiere League cricket matches.

“Disney will have to cut prices from current levels in an effort to stimulate demand and defend its market share in an increasingly competitive industry,” said Jesse Cohen, senior analyst at Investing.com.

Disney’s revenue for the quarter ended July 1 rose 4% to $22.33 billion from a year earlier, just short of Wall Street estimates, according to Refinitiv. It delivered per-share earnings of $1.03, when excluding certain items, beating Wall Street projections of 95 cents a share.

The company took $2.65 billion in impairment and restructuring charges in the quarter, reflecting the cost of removing some content from its streaming services, terminating licensing agreements and $210 million in severance payments to laid-off workers.

Disney’s traditional television business continued its decline. Higher sports programming production costs and lower affiliate revenue dragged down the performance of its cable channels. TV revenue fell 7% to $6.7 billion, while operating income fell 23% to $1.9 billion.

Disney’s direct-to-consumer business reported a 9% increase in revenue to $5.5 billion, as the average revenue per subscriber rose at Disney+ and Hulu.

Content sales and licensing, the unit that includes film and television sales, reported a deeper operating loss of $243 million in the quarter, compared with a loss of $27 million a year ago, as some movies disappointed, including the live-action remake of The Little Mermaid.

Disney’s Parks, Experiences and Products group reported a 13% increase in revenue in the quarter, to $8.3 billion, and an 11% bump in operating income to $2.4 billion. The results were buoyed by the rebound of the Shanghai Disney Resort, which was open for the full quarter compared with the same time a year ago, when COVID-19 forced the park to be closed for all but three days. The unit had lower operating income at its domestic parks, due to decreases at Walt Disney World Resort in Orlando, Florida. — Reuters

BancNet, PCHC shareholders OK proposed merger

SEBASTIAN HERRMANN-UNSPLASH

THE PROPOSED MERGER between BancNet, Inc. and Philippine Clearing House Corp. (PCHC) has been okayed by their respective shareholders and endorsed by the Philippine Payments Management, Inc. to the central bank for approval. 

“The proposed merger, which was initiated by the Bankers Association of the Philippines (BAP), has been approved by the shareholders of both BancNet and PCHC with 86.67% of BancNet shares being voted in favor of the merger and 78.57% of PCHC shares being voted in favor of the merger,” BancNet said in a statement on Thursday.

The proposed merger now awaits approval from the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission and the Philippine Competition Commission (PCC).

Last week, the PCC announced it was conducting a market inquiry into interbank electronic fund transfer services as it was reviewing the proposed merger.

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

BancNet said it fully supports the proposed merger, which will help respond to recent developments surrounding the payments industry.

This would also prompt both clearing switch operators to undergo the necessary changes in their respective firms to address the “new realities” in the industry.

“The merger of BancNet and PCHC will create a stronger, more resilient organization that will be better able to provide safe, reliable, and efficient payment services for the benefit of consumers. This will be achieved through the consolidation of their financial, technology, talent, and other resources,” it said.

If approved, the merged entity will be able to comply with regulatory requirements under the Republic Act 11127 or The National Payment Systems Act.

It will also comply with BSP Circular No. 1089 or the Payments System Oversight Framework, Circular No. 1126 or the Adoption of the Principles for Financial Market Infrastructures (PFMI), and Circular No. 1127 or the Governance Policy for Operators of Payment Systems.

The consolidation of the two firms’ resources and budgets will also allow the merged entity to develop and implement a risk management plan, ensuring a secure data center and backups, which would address cybersecurity risks.

“The merged entity will result in better governance, as required under the new regulatory regime, achieve cost efficiencies arising out of the pooling of technology, risk management, and other resources, and achieve a sharper strategic focus on the development of the payments industry,” BancNet said.

It noted that the merged entity will operate as a utility for the payments industry.

“As such, it shall price its services to consider the costs of providing the service plus a reasonable margin to fund future investments in technology and processes necessary to maintain and improve the service,” it said.

“This will help ensure that costs remain in check and that pricing of payment services is transparent, fair, and equitable to all key stakeholders,” it added.

BancNet and PCHC are the clearing switch operators for InstaPay and PESONet, the automated clearing houses launched under the BSP’s National Retail Payment System in December 2015.

PESONet, which is being operated by the PCHC, enables high-value transactions and is considered as an electronic alternative to the paper-based check system and recurring payments.

Meanwhile, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is handled by BancNet.

The total value of transactions coursed through InstaPay and PESONet climbed by 30.6% to P5.93 trillion as of June from P4.54 trillion in the same period in 2022.

In terms of volume, transactions done through the clearing houses stood at 398 million, 35.3% higher than the 294 million in the comparable year-ago period.

Under its Digital Payments Transformation Roadmap, the BSP aims to digitize 50% of total retail transactions and onboard at least 70% of Filipino adults to the financial system by the end of this year. — Keisha B. Ta-asan

Mitsubishi Motors Philippines sets sights on higher market share

MITSUBISHI MOTORS Philippines Corp. (MMPC) is targeting an increased domestic vehicle market share by aiming to sell more than 75,000 vehicles during the fiscal year, a company official said on Thursday.

“For the whole fiscal year from April 2023 to March 2024, our target sales is 75,000, but we may be able to exceed that a little bit,”  MMPC First Vice-President for Sales and Marketing Jack S. Ramirez, Jr. told reporters.

“Our target is 18% market share, but it may reach 18.5%,” he added.

Mr. Ramirez said that MMPC sold 43,831 units during the January to July period, representing an increase of more than half compared to last year.

This growth was driven by higher sales of the L300 utility vehicle, Mirage hatchback, and Mirage G4 sedan, all of which are assembled at the company’s Sta. Rosa assembly plant, he noted.

“Our sales volume from January to July is at 43,831 units. This is slightly above our target market share volume of 18%. It is about 18.9%. This is total industry data.”

“The L300 sales surged as we made special promotions for micro, small, and medium enterprises (MSMEs), while Mirage G4 and sedan models are targeting first-time buyers and starting families,” he added.

Mr. Ramirez also said that MMPC is seeing higher vehicle sales during the “ber” months, noting that the peak of the company’s sales performance occurs during this period. — Revin Mikhael D. Ochave

Philippines’ quarterly GDP performance

THE PHILIPPINE ECONOMY grew much slower than expected in the second quarter, dragged by elevated inflation, the lagged impact of interest rate hikes and a contraction in government spending. Read the full story.

Lebanon moves to ban Barbie film for ‘promoting homosexuality’

A scene from the movie Barbie. — IMDB

BEIRUT — Lebanon’s culture minister moved to ban the film Barbie from cinemas on Wednesday, saying it “promotes homosexuality” and contradicts religious values.

Minister Mohammad Mortada is backed by powerful Shi’ite armed group Hezbollah, whose head Sayyed Hassan Nasrallah has ramped up his rhetoric against the LGBT community, referring in a recent speech to Islamic texts that call for punishing offenders with death.

Mortada’s decision said the film was found to “promote homosexuality and sexual transformation” and “contradicts values of faith and morality” by diminishing the importance of the family unit.

Based on Mr. Mortada’s move, Interior Minister Bassam Mawlawi in turn asked General Security’s censorship committee, which falls under the interior ministry and is traditionally responsible for censorship decisions, to review the film and give its recommendation.

Kuwait followed in Lebanon’s footsteps later in the day, saying it had banned Barbie and supernatural horror film Talk to Me to protect “public ethics and social traditions,” the state news agency said.

Lebanon was the first Arab country to hold a gay pride week in 2017 and has generally been seen as a safe haven for the LGBT community in the broadly conservative Middle East.

But the issue has come into sharper focus recently, sparking tensions. Mr. Mawlawi last year took a decision to ban events “promoting sexual perversion” in Lebanon, understood to refer to LGBT-friendly gatherings.

In a speech last month, Mr. Nasrallah called on Lebanese authorities to take action against materials he deemed to be promoting homosexuality, including by “banning” them.

He said homosexuality posed an “imminent danger” to Lebanon and should be “confronted.” In the case of a homosexual act, Mr. Nasrallah said in late July, “from the first time, even if he is unmarried, he is killed.”

On Tuesday, Lebanon’s cabinet urged citizens to “cling” to family values following a meeting with the country’s top Christian cleric Patriarch Bechara Boutros al-Rai, although it did not mention the LGBT community specifically.

Ayman Mhanna, executive director at the non-profit civic Samir Kassir Foundation, told Reuters that Mortada’s move came amid “a wave of bigotry.”

“This is part of a broader campaign that is bringing together Hezbollah, the Christian far right, and other top religious leaders in a focused campaign against LGBT people,” Mhanna said.

Starring Margot Robbie and Ryan Gosling as Barbie and Ken, the movie sends Mattel, Inc.’s doll on an adventure into the real world. The film has topped $1 billion in box office ticket sales worldwide since its July 21 debut. — Reuters

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