Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 6037

Busybee joins DICT and NPC in underscoring importance of data privacy and cybersecurity

More than five hundred people from different organizations, the private sector, and the government witnessed and participated in the last part of the webinar series organized by MyBusybee, Inc., “Coping with the Accelerated Digitalization: Empowering Organizations with Digital Tools,” together with the event’s panelists from different fields of expertise, answering the question, “Is the internet a safe place to migrate our business into?”

The pandemic presents an opportunity for full-blown innovation. However, basic awareness and education regarding cyber risks are required to help protect our businesses and organizations from experiencing potential difficulties that could result from a cyber scam or attack.

Presenting their take on cybersecurity were guest speakers Dr. Thelma Villamorel from the Department of Information and Communications Technology (DICT), Ireneus Laszlo Legeza from Busybee’s CyberSecurity Division, and Janssen Esguerra from the National Privacy Commission (NPC) — discussing the impact of COVID-19 on cyber risk and the mitigation measures that businesses and professionals can take.

During her presentation with the topic, “Cybersecurity in the Philippines: How ready are we for digitalization?,” Dr. Villamorel outlined four main talking points — Cyberthreat Landscape, NCSP 2022 Cybersecurity Framework, CERT-PH Organizational Structure, and DICT Cybersecurity Bureau Initiatives, explaining that many of the industries which are transforming serve critical functions and as digital spreads its roots deeper, it also increases the risk and impact of cyberattacks on these institutions. She said, “The question is not if you are going to be a victim, but when are you going to be a victim?” and highlighted the top cyber-attacks that anybody can experience today through attacks on banks, ransomware, data hacks, phishing, and social engineering to name a few. On the bright side, Dr. Villamorel said the effects of these attacks can be mitigated when there is awareness. She emphasized on the truth that, “Data is more valuable than oil and is the most expensive asset in the world.” She then challenged everyone to be responsible in securing cyberspace by becoming more aware and educated about the dangers and risks of the internet.

Mr. Legeza presented the topic, “Strategic Cybersecurity Development for Organizations,” summarizing the different approaches that are necessary for cybersecurity. He noted that the issue on cybersecurity is not something as optional as in the past but has now become a necessity. Because of the increasing frequency and potential severity of attempted cyberattacks, organizations are increasingly recognizing the need for a robust strategy to address the challenges posed by cybersecurity threats. He said that, “Anything digital is hackable, anything mathematical is hackable” and there is no such thing as one hundred percent safe. He then shared Cybersecurity Strategy and Plan template (which was made available for download) to help organizations redefine strategies, undertake organizational change and workforce upskilling at scale, and manage increased digital, data, and cybersecurity risks.

Mr. Esguerra shared some valuable tips on how to secure our information online and significant points of the Data Privacy Act in his presentation. Businesses and institutions need to ensure that they have the right security solutions in place to ensure they are able to keep their data and infrastructure safe. One of the highlights from the presentation was on the importance of innovation through regulatory sandboxes that can help shape better policies and technologies for consumers and roll out the necessary interventions to eradicate the threat and recover. He concluded with a highly-commendable message from the National Privacy Commissioner himself, Raymund Liboro, “The NPC supports the successful use of digital technologies and the processing of personal data… in a manner that is effective, and preserves and protects the data privacy rights of individuals,” showing that privacy is the utmost priority because it’s the key for enabling technologies and protecting rights. At the panel discussion, Mr. Esguerra explained that whenever there is a security incident or a sensitive public information is breached or acquired by an unauthorized person, the NPC will conduct a thorough investigation to assess and evaluate the incident, restore integrity to the information and communications system, mitigate and remedy any resulting damage, and comply with reporting requirements.

There are many ways to reduce the likelihood and impact of a cyberattack, but it requires focused action and planning. Companies who are already educated about cybersecurity will be better prepared to face the continuous increase of cyber threats. Busybee believes that education plays an important role in pushing the development of the country’s cybersecurity capability. Moreover, the company believes there should also be a strong collaboration between the public and private and government sectors to ensure better knowledge-sharing across the board. We must all cooperate with the goal to enhance the current setup of security architecture and work together for the development and application of security measures among the businesses and organizations to ensure collective resilience.

Pandemic response still a budget priority

PHILIPPINE STAR/ MICHAEL VARCAS

PRESIDENT Rodrigo R. Duterte is set to submit a record P5.024-trillion national budget for 2022 to Congress on Monday (Aug. 23), with nearly P2 trillion going to social services that includes pandemic response, the presidential spokesperson said.

The proposed spending plan is 11.5% more than this year’s P4.51-trillion budget, with the government prioritizing funding for health-related services and education-related programs as the coronavirus pandemic drags on.

Palace Spokesperson Herminio “Harry” L. Roque, Jr. told a televised news briefing that the social services sector will get P1.922 trillion or 38.3% of next year’s national budget.

Funds will be used to implement the Universal Health Care Act and Universal Access to Quality Tertiary Education Act, as well as the purchase of more coronavirus disease 2019 (COVID-19) vaccines and personal protective equipment for healthcare workers.

No other specific details were given.

The economic services sector will get P1.474 trillion or nearly a third of the 2022 budget. This will be used to finance the flagship infrastructure projects under the “Build, Build, Build” program, which are aimed at creating jobs to help the economy recover from the pandemic.

The general public services sector will get P862.7 billion, while P541.3 billion or 11% of the proposed budget will go to paying off debts.

The Defense sector will be allocated P224.4 billion under the spending plan.

By department, the biggest allocation under the 2022 budget will go to the Department of Education, Commission on Higher Education and Technical Education and Skills Development Authority (TESDA) with P773.6 billion next year. This is 9.24% higher than the P708.181 it received in this year’s budget.

The Department of Public Works and Highways, which is one of the main infrastructure implementing agencies, will get a P686.1-billion budget, 2.82% higher than the P667.3 billion in this year’s budget.

This was followed by the Department of Interior and Local Government, whose budget will be nearly unchanged at P250.4 billion.

The Department of Health (DoH) will get a 19% increase in its 2022 budget to P242 billion.

“If there’s one thing that should receive the highest allocation in the 2022 budget, it would be the health sector,” said John Paolo R. Rivera, an economist at the Asian Institute of Management.

“Unless the pandemic is managed, we cannot liberally open the economy,” he said in a Viber message. “While the pandemic is here, the budget must be allocated to social services.”

“Policy makers need to realize that unless the pandemic is arrested, we cannot have normalcy in our lives, unless we are working on something to make this disruption the new normal,” Mr. Rivera said.

The Department of Defense will receive a P222-billion allocation, while the Department of Social Welfare and Development will get P191.4 billion in next year’s budget.

The Transportation department, which also implements major infrastructure projects, will be allocated P151.3 billion. The Department of Agriculture and National Irrigation Authority will get a P103.5-billion budget.

The proposed 2022 budget will face strong scrutiny from lawmakers after the Commission on Audit (CoA) flagged the unmaximized budgets of several government agencies, said Maria Ela L. Atienza, a political science professor at the University of the Philippines.

“We expect them to be extra hard on many agencies flagged by CoA,” she said in a Viber message. “With the Executive branch presenting their proposed budget for 2022, it is expected that the two Houses will be harder on the proposed budget.”

“The 2022 elections are near and the public and various interest groups are clamoring for Congress to exercise greater oversight functions,” she said, noting that the lawmakers will avoid being accused of not doing their job and condoning inefficiency and possible corruption.

The Health department is at risk of having its allotment reduced after state auditors flagged deficiencies in its pandemic response funds amounting to P67.3 billion, Ms. Atienza said.

“The two Houses have been scrutinizing the finances of DoH and whether these have actually been used for pandemic response,” she said. “Now, the CoA report has given the two Houses additional data to make the DoH accountable.” — Kyle Aristophere T. Atienza

Renewed lockdowns prompt DBCC to revisit economic growth targets

PHILIPPINE STAR/ MICHAEL VARCAS
Metro Manila is under the strictest form of lockdown until Aug. 20, amid a Delta-driven surge in coronavirus disease 2019 (COVID-19) infections. — PHILIPPINE STAR/ MICHAEL VARCAS

THE INTERAGENCY Development Budget Coordination Committee (DBCC) is set to review its growth targets and macroeconomic assumptions in a meeting on Wednesday (Aug. 18), in light of the renewed lockdown restrictions in some parts of the country, including Metro Manila.

“We will review all our macroeconomic assumptions and projections depending on the GDP (gross domestic product) numbers and now, on this lockdown that happened,” Finance Secretary Carlos G. Dominguez III told reporters on Tuesday. He declined to give further details.

Metro Manila is under the strictest form of lockdown until Aug. 20, amid a Delta-driven surge in coronavirus disease 2019 (COVID-19) infections.

Estimates from the National Economic and Development Authority (NEDA) showed the economy loses around P151 billion in potential output each week the government places Metro Manila under the enhanced community quarantine (ECQ). The stringent lockdown also pushes 177,000 more Filipinos into poverty and could render 444,000 jobless.

To mitigate the impact, the government released P11.26 billion worth of cash aid to help Metro Manila residents cope with the ECQ, P2.715 billion to households in Laguna and P700 million to Bataan.

In a special meeting on July 19, the DBCC retained its 6-7% growth target for the year after the easing of lockdown measures and a pickup in the vaccination rollout. It also kept the 7-9% growth target for 2022 and a 6-7% expansion each year for 2023-2024.

Economic managers also raised the growth target for goods exports to 10% this year from 8% previously, while the services exports are also expected to grow faster by 7% next year than the previous estimate of 6%, reflecting optimism on global economic recovery.

While the economy grew by an annual 11.8% in the second quarter, GDP data also indicated a slowdown in recovery momentum. On a quarter-on-quarter basis, GDP declined by 1.3% in the April to June period – when Metro Manila was also placed under an ECQ until mid-April.

The economy needs to grow by 8.2% in the second half to meet the lower end of the government’s target this year.

The Health department reported 10,035 new COVID-19 infections on Tuesday, bringing the active caseload to 105,787.

As cases continued to increase, Mr. Dominguez said the country’s mass vaccination program would provide a first line of defense for the economy.

As of Aug. 15, there are 12.56 million Filipinos fully vaccinated against COVID-19, representing 11.47% of the population, according to Our World in Data.

“Unfortunately, our COVID virus is not standing still… they’re evolving, mutating. So I cannot predict what new form will come up but rest assured that we are ready to meet it with our first line of defense. We have also been investing heavily in our healthcare. So that seems to be the only logical way we can approach this now,” he added.

The Finance chief added that the tax reforms passed before the pandemic hit also provided financial buffer for the government to respond to the pandemic.

In a report released on Monday, NEDA warned that job creation will remain muted if stringent lockdown measures will be enforced continuously, stating that the government has to focus on rolling out more proactive measures to curb the spread of the virus.

The unemployment rate hit 7.7% in June, similar to its level in May, while the underemployment rate — or the portion of the labor force that is currently employed but wanting more jobs — rose to 14.2% from 12.3%.

The country’s jobless rate was also among the highest among seven selected Asian economies in the report, second highest next to India’s 9.7% unemployment level for April-June, with Thailand recording the lowest rate at 1.9% for October-December 2020.

NEDA said the government should take advantage of the ECQ period to hasten the inoculation program so the economy can be safely reopened and jobs will be restored. — B.M. Laforga

Planned South Commuter Railway to boost jobs accessibility — ADB

PHILIPPINE STAR/EDD GUMBAN
The government is undertaking several railway projects to improve accessibility in the country. The photo shows a Philippine National Railways train car. — PHILIPPINE STAR/ EDD GUMBAN

RESIDENTS OF CITIES with planned South Commuter Railway (SCR) stations are expected to have access to over 300,000 additional jobs, as commuting time between Manila and Laguna is shortened, a study by the Asian Development Bank (ADB) showed.

In a study released on Tuesday, the ADB said the 54.6-kilometer (km) railway, which will have 19 stations between Blumentritt in Manila to Calamba in Laguna, could increase the job opportunities by an average of 15.3% for those living in the southern cities and by 8.5% for those residing in Metro Manila.

“The SCR will pass through five cities in Laguna, and five cities in Metro Manila. Each city will have at least one or two SCR stations.

“The completion of the SCR, together with the NSCRP (North–South Commuter Railway Project) and the existing rail network (Metro Rail Transit and Light Rail Transit), will give access to more jobs and close the gaps in job accessibility for some municipalities in the catchment area. With rail-based transit, commuters from 48 out of 64 municipalities can travel to a wider area within a one-hour window, accessing more job opportunities,” the ADB said in the study.

The ADB noted commuters using the SCR will now have access to a wide range of jobs, which will also have higher pay and more stability.

“The SCR will help mitigate regional income inequality by easing the spatial mismatch between workers and jobs,” it said, as commuters can travel more easily to areas with more jobs.

For instance, the study showed commuters in Makati can access up to 5.4 million jobs, while there are only 31,000 jobs in Nasugbu, Batangas.

It noted that service sector jobs dominate Metro Manila, while manufacturing jobs are mostly found south of the capital. Manufacturing wages in southern cities are also usually lower than wages for both service and manufacturing jobs in Metro Manila, it added.

“The spatial distribution of jobs relative to workers’ place of residence is far from even, resulting in the spatial mismatch between jobs and the labor force and inadequate livelihood options for households in the outskirts of Metro Manila. Household expenditure data suggest that households in the third and fourth income quintile use rail the most as a form of transport, suggesting that the immediate beneficiaries of the SCR are those in the middle- to upper- middle-income groups and skilled workers,” the ADB said.

The multilateral agency said the benefits of the new railway are likely to go beyond increased job accessibility, as the study does not consider the overall impact of other rail expansion projects.

The ADB is scheduled to approve a $1.75-billion loan for the south rail project by the fourth quarter of the year.

This is part of the North–South Railway Project of the government that spans 163 kms connecting Clark, Pampanga, Metro Manila, and Calamba, Laguna. This bigger railway line was co-financed by the ADB and Japan International Cooperation Agency (JICA), and will have 37 stations and 464 train cars or 58 trains sets, including airport express trains. — B.M. Laforga

SEC sets rules for investment companies to qualify for cross-border transactions

THE SECURITIES and Exchange Commission (SEC) on Tuesday released guidelines to allow qualified investment firms in the Philippines to offer and invest in shares via the ASEAN Collective Investment Schemes (CIS) Framework.   

“The rules apply to investment companies incorporated in the Philippines who intend to participate in the framework, as well as foreign CIS of member jurisdictions that will offer for sale units in the Philippines or other qualifying CIS as allowed under the ASEAN CIS Framework,” the corporate regulator said in a statement.

In May, the SEC inked a supplemental memorandum of understanding with its counterparts in Malaysia (Securities Commission Malaysia), Singapore (Monetary Authority of Singapore), and Thailand (SEC Thailand) to join the framework.

As one of the initiatives of the ASEAN Capital Markets Forum (ACMF), this allows fund managers in member jurisdictions to offer investments such as trust funds or mutual funds to retail investors in other Association of Southeast Asian Nations (ASEAN) countries.

According to the SEC’s Memorandum Circular No. 9, Series of 2021, to participate in the framework, firms must be compliant with local guidelines and the ACMF’s standards of qualifying CIS.   

“In instances where two sets of requirements differ on a particular provision, the stricter requirement must be followed and highlighted as such in the prospectus of the fund,” the SEC said.

Philippine investment companies and their fund managers may offer shares to other members of the ASEAN CIS Framework if they are incorporated in the Philippines and are authorized to issue shares to the public under the Investment Company Act (ICA) and the Securities Regulation Code (SRC).

Investment firms offering both shares and units may still participate in the framework, however, only shares may be offered for cross-border transactions.

The commission will assess whether the investment company is suitable to be a qualifying CIS. The review process will be done within 21 business days from the submission of complete documents.

“The shares of the qualifying CIS must be concurrently offered in the Philippines and in member jurisdictions,” the SEC said in the memorandum circular.

Meanwhile, a foreign CIS may be offered in the Philippines if it is constituted in a member jurisdiction and is authorized to offer shares to the public in its home jurisdiction. It should also be deemed as a qualifying CIS by its home regulator.

The foreign CIS must be recognized by the SEC and must gain permission to be offered in the country.

“A local representative and distributor/s in the Philippines must be appointed in relation to each foreign CIS that is to be offered, marketed and distributed in the Philippines,” the SEC said.

Guidelines for the foreign CIS’ representative and distributors are also included. A single entity may take both roles, provided that it has the necessary requirements.   

The foreign CIS will have to comply with the disclosure requirements of the SEC. Therefore, the local representative will act on behalf of the foreign CIS and its operator, taking on responsibilities such as filing and keeping reports and documents. 

“The applicable provisions of the SRC, ICA and their implementing rules and regulations on civil and/or criminal liabilities shall apply in case of any violation relative to the offering of the foreign CIS in the Philippines,” the SEC said. — K.C.G. Valmonte

Ty’s GT Capital posts ‘strong’ first-half results

GT Capital Holdings, Inc. on Tuesday said its net attributable income surged by over 12 times to P2.6 billion in the second quarter from P197 million logged in the comparable period the previous year.

In a regulatory filing, the Ty family’s listed holding company reported a 197% gain in April-to-June revenues to P40.31 billion from P13.60 billion.

For the six-month period, GT Capital posted a 143% growth in net attributable income to P6.67 billion from last year’s P2.74 billion. Revenues climbed 63% to P85.66 billion from P52.62 billion.

“GT Capital delivered strong results in the first half of 2021, which are approximately 80% of 2019 pre-COVID levels,” GT Capital President Carmelo Maria Luza Bautista said in a statement.

The company also saw its core income for the first half surge by 83% to P5.8 billion from P3.2 billion on the back of the positive performance of Metropolitan Bank & Trust Co. (Metrobank) and Toyota Motor Philippines Corp. (TMP).

“Amidst challenging conditions, the group’s first half performance demonstrates our inherent capacity to bounce back from the historic low levels of the past year, and in certain sectors, even optimize competitive shares by gaining market share,” Mr. Bautista said.

Metrobank reported a 28% increase in first-half net income year on year to P11.7 billion, as profits climbed 30% to P3.9 billion in the second quarter. GT Capital said the recovery in recurring fees offset the subdued loan demand and margin pressure.

Meanwhile, TMP’s consolidated net income in the first semester surged by 235% to P3.5 billion as consolidated revenues also climbed 60% to P63.7 billion. Its vehicle sales for the period went up by 79% to reach 63,758 units, while sales in the automotive market climbed 51% to 139,949 units.

It also launched the New GR Yaris in July.

“We have significantly outpaced the growth momentum of the industry, which led us to achieve an all-time high market share of 45.6%,” GT Capital Auto Dealership Holdings Chairman Vince S. Socco said.

Wholly owned property unit Federal Land, Inc. recorded a 243% growth in net income to P587 million from P171 million in the first half, as construction activity continued and as project bookings increased.

Federal Land’s revenues amounted to P5.1 billion, up by 21% from last year’s P4.2 billion. However, sales reservations slumped by 29% to P6.5 billion from P9.1 billion, while real estate sales went up by 17% to P3.5 billion from P3 billion.

“It capitalizes on opportunities such as sustained demand in residential developments in the upscale to luxury segments and on project launches with favorable market acceptance,” GT Capital said.

Federal Land’s office spaces recorded occupancy levels “above industry level” by 3.7%.

Metro Pacific Investments Corp.’s consolidated core net income for the first semester totaled P6 billion, 13% higher than the P5.3-billion income seen in the same period last year.

“This is a substantial improvement from the 26% decline in the first quarter of 2021 and was driven largely by improved traffic on its toll roads and higher volume of electricity sold,” GT Capital said.

The company’s insurance firm, AXA Life Insurance Corp., generated P1.4 billion in the six-month period, inching down from last year’s P1.5 billion. However, its consolidated life and general insurance gross premiums were up by 33% to P22.1 billion from P16.7 billion “driven by the life segment.”

“AXA Philippines attained life insurance sales in annualized premium equivalent of P3.2 billion in the first half of 2021 from P2.4 billion in the same period last year, as single premium product sales increased significantly,” GT Capital said, adding that single premium sales grew 96% year on year.

On Tuesday, shares of GT Capital at the stock market closed unchanged at P530 each. — Keren Concepcion G. Valmonte

2GO cuts net loss, stays bullish on growth

2GO Group, Inc. trimmed its second-quarter net loss to P308.7 million from a loss of P621.6 million in the same period a year earlier, as cost of services and goods sold fell.

Total revenues for the quarter decreased 2.6% to P3.8 billion from P3.9 billion in the previous year, 2GO’s second-quarter results showed.

By business segment, freight revenue for the quarter rose 49.4% to P849.7 million, while travel revenue declined 10.1% P93.8 million.

Second-quarter revenue from logistics and other services grew 36.4% to P1.5 million, while revenue from the sale of goods fell 33.3% to P1.4 million.

Cost of services and goods sold decreased 7.5% to P3.7 billion, resulting in a gross profit of P123.1 million, compared to a loss of P86.1 million in the same period last year.

2GO’s second-quarter general administrative expenses increased 5.4% to P398 million, bringing the company’s operating loss to P274.9 million from a loss of P463.8 million in the previous year.

The company trimmed its attributable net loss for the first six months of the year to P599.8 million from a loss of P730.5 million in the same period a year earlier.

First-half revenues fell 14.3% to P7.8 billion from P9.1 billion in the previous year.

2GO attributed its net loss for the first half to “the continued slowdown in the economy brought about by the… pandemic.”

“For 2021, 2GO continues its corporate governance initiatives, and aims to expand and further enhance its service offerings to its customers and stakeholders. 2GO plans to achieve this through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices from its new shareholders,” the company said.

“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” it added.

2GO shares closed 1.12% higher at P8.14 apiece on Tuesday. — Arjay L. Balinbin

Fruitas swings to profit on ‘resilient’ community stores

FRUITAS Holdings, Inc. on Tuesday reported that it swung to profitability in the April-to-June quarter, earning P6.9 million and reversing the P27.44-million loss incurred a year ago, as its community stores “remained resilient.”

“As we record our first quarterly net income since the pandemic, we will continue to ‘quarantine-proof’ our business,” Fruitas Holdings President and Chief Executive Officer Lester C. Yu said in a statement on Tuesday.

The company’s revenue surged three-fold to P262.62 million from P87.91 million in the same quarter last year. It also inched up from the P261 million generated in the first quarter.

Its community stores’ sales contribution reached 15% in the second quarter even if certain kiosks were temporarily closed. The company said it continues to expand its network.

“Our community stores remained resilient and have been instrumental in our push to generate more demand for our products online,” Mr. Yu said.

As of end-June, the company had 67 community stores under its belt. Its store network grew to 80 by Aug. 15, taking into account franchised Balai Pandesal stores following the company’s agreement forged with Balai Pandesal Corp. in June.

“Our wider network now allows easier access to and faster delivery of Fruitas products. It also makes us an attractive partner for other companies which want to target the same consumer base,” Mr. Yu said.

For the first half, Fruitas Holdings trimmed its loss by 30% to P8.63 million from P12.35 million as revenues grew by 13% to P524 million. However, this is still 44% lower than its topline pre-pandemic.

“Despite the significant drop in total revenue versus pre-pandemic levels of 2019, FRUIT’s average daily sales per store have already recovered to about 70% of pre-pandemic level,” Fruitas Holdings said, using its stock symbol.

On Tuesday, shares of Fruitas Holdings at the stock exchange went up by 0.85% or one centavo to close at P1.19 each. — Keren Concepcion G. Valmonte

FDC income slides; top official hopes to recover momentum

FILINVEST Development Corp.’s (FDC) net income attributable to equity holders of the parent company amounted to P2.23 billion in the second quarter, down by almost 47% from the P4.18 billion year on year as its topline figure dropped.

The Gotianun-led firm also reported in a regulatory filing on Tuesday that its revenues for the three-month period totaled P13.34 billion, inching down by six percent from P14.25 billion. Revenues and other income also decreased by 22% to P15.28 billion from P19.57 billion.

“The market conditions remain to be challenging, but our businesses continue to persist and progress amidst the volatility,” FDC President and Chief Executive Officer Lourdes Josephine Gotianun-Yap said in a statement on Monday.

For the first semester, FDC’s net income attributable posted a 42% drop to P4.2 billion from P7.22 billion from a year earlier. Its consolidated income amounted to P5.7 billion.

Its banking unit accounted for over half or 55% of FDC’s bottom line, contributing P3.7 billion, which is 16% less than the P4.4-billion contribution in the same period last year on lower loan revenues and trading gains.

Meanwhile, its property business, which includes its real estate and hospitality segment, recorded 26% or P1.7-billion net income contribution. Its power subsidiary accounted for 15% or P971 million, while the four percent balance was from its other business units.

The company’s revenues and other income also suffered a 23% dip to P31.88 billion from P41.25 billion.

Banking arm EastWest Banking Corp.’s profit went down by 18% to P3.8 billion year on year. Its net interest income also declined by 14% to P11.5 billion due to lower loan levels and yields on loans and fixed income securities.

FDC’s real estate business comprised of Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. contributed a P2.2-billion net income to the group in the first semester.

In a separate statement, FLI said its net income attributable to equity holders saw a 14% improvement in the second quarter to P1.09 billion from P952 billion year on year.

The company saw a 76% increase in residential revenue during the period to end with P2.57 billion, “which signals the recovery of the residential business and further confirms that demand for the company’s affordable and mid-income housing products remains resilient.”

FLI launched P3.4-billion worth of projects in the second quarter. Capital expenditures for the first half of 2021 totaled P5.78 billion, 60% of which were used for residential projects, 26% for office developments, and the rest were spent on retail, innovation or logistics parks, and land acquisition.

The listed property developer has P30 billion more residential projects in the pipeline, which the company will launch “as market conditions further improve.” It also said it is planning to expand to new areas in the country such as Bataan, Naga, Dagupan, and General Santos.

The real estate investment trust sponsored by FLI also made its debut at the Philippine Stock Exchange on Aug. 12, which raised P12.6 billion from its initial public offering. Filinvest REIT Corp.’s net income for the second quarter declined by 12% to P411.18 million year on year.

Meanwhile, Filinvest Hospitality Corp. reported a 41% drop in revenue to finish the first semester with P493 million as occupancy rates at its hotels were still below pre-pandemic levels.

“Revenue generation of the six hotels and resorts under the Filinvest group’s portfolio was limited due to the travel restrictions and social distancing guidelines,” FDC said.

However, Filinvest’s Crimson Alabang logged a higher occupancy rate at 73% and Quest Clark’s stood at 74%.

“We were already seeing an uptrend in operations just before the enhanced community quarantine that is currently enforced in the National Capital Region and nearby provinces was announced,” said Ms. Gotianun-Yap.

“We are hopeful that this is a headwind and that when the current restrictions are lifted, we can regain the recovery momentum as more and more Filipinos are vaccinated,” she added.

On Tuesday, shares of FDC at the stock exchange went up by 0.13% or one centavo to close at P7.80. — Keren Concepcion G. Valmonte

Del Monte Philippines enters dairy business

DEL Monte Philippines, Inc. (DMPI) in an e-mailed statement on Monday said that it will be expanding into the dairy sector in the Philippines.

The company said it entered into a “strategic alliance” with Vietnam Dairy Products JSC or Vinamilk. Both companies will be contributing 50% to the total investment capital of the joint venture.

“The joint venture will import dairy products from Vinamilk, and market and distribute them in the Philippines through DMPI,” Del Monte Philippines said.

Vietnam’s 45-year-old Vinamilk exports to 56 countries. Its product offering includes over 250 SKUs (stock-keeping units), which can address the “nutrition needs of consumers.”

It operates 13 dairy farms and a total herd of nearly 160,000 cattle, 13 factories, and 250,000 retail outlets in Vietnam. The company also has three factories in the United States, New Zealand, and Cambodia as well as an organic dairy farm complex in Laos.

Vinamilk is listed in Vietnam’s stock exchange and is said to be the largest listed food and beverage company, with a market capitalization of $9 billion. It is also among the Top 40 largest dairy companies across the globe, taking 36th place by revenue with its 2020 sales worth $2.6 billion.

“The joint venture provides an opportunity for growth in the domestic dairy industry as Vinamilk expands into a new consumer market, and as Del Monte expands its footprint into a new category regularly consumed in Filipino households on a daily basis,” DMPI said.

Vinamilk will be providing the technical and manufacturing expertise for the products of the joint venture. Products will be co-branded, to bank on the strong brand equity of Del Monte in the Philippines.

DMPI is the “most profitable subsidiary” of listed parent Del Monte Pacific Ltd., finishing its financial year ending April to net an income of P4.6 billion with sales inching up by eight percent to P34.5 billion.

On Tuesday, shares of listed Del Monte Pacific at the local bourse declined by 5.45% or 72 centavos to close at P12.48 apiece. — Keren Concepcion G. Valmonte

GMA Network continues dominance; income surges 98%

BROADCAST company GMA Network, Inc. saw its attributable net income surge 98.1% to P1.6 billion in the second quarter of the year, as revenues from advertising and sale of goods and services remained at high levels.

Total revenues for the quarter climbed 59.4% to P5.1 billion, the company’s second-quarter results showed.

GMA Network’s total expenses for the second quarter also increased 55% to P3.1 billion.

For the first half of the year, the company saw its net income attributable to the parent equity holder jump 157.1% to P3.6 billion.

Total revenues for the first six months grew 55.9% to P10.6 billion.

The company’s expenses for the first half went up 25.5% to P5.9 billion.

“The presence of new revenue streams such as the sale of digital setup boxes (GMA Affordabox) and digital TV mobile receivers/dongles (GMA Now) further added to this year’s topline growth,” GMA Network said.

“Advertising revenues remained the lifeblood of the company with a 93% share of the total consolidated revenue pie,” it added.

GMA Network shares closed 5.69% lower at P13.58 apiece on Tuesday. — Arjay L. Balinbin

DMCI Mining income climbs as revenues, shipments rise

DMCI Mining Corp. recorded a 409% increase in its net income for the first half to P1.2 billion from P241 million on the back of stronger revenues and higher shipments.

Its parent firm, DMCI Holdings, Inc., said in a stock exchange disclosure on Tuesday that the mining unit was able to ship 1.24 million wet metric tons (WMT) of nickel ore for the January-to-June period, up 45% from the 853,000 WMT shipped a year ago.

From the total, 718,000 WMT were contributed by Berong Nickel Corp., while 522,000 WMT were shipped by Zambales Diversified Metals Corp.

Due to higher shipments, DMCI Mining’s revenues for the first half rose 123% to P2.7 billion from P1.2 billion the previous year.

“This is the first time that both our mining assets are operating at full capacity. We expect shipments to remain strong in the second half since we were able to extend Berong’s mine life from June until third quarter this year,” DMCI Mining President Tulsi Das C. Reyes said in the disclosure.

According to DMCI Mining, the average nickel grade of its shipped nickel was at 1.39% while the average selling price per metric ton rose 57% to $44 due to the surging stainless production in China, higher demand for electric vehicles, and the ongoing Indonesian nickel ore export ban.

“Nickel is mainly used in stainless steelmaking, but is also a vital ingredient for the lithium-ion batteries used to power electric vehicles (EV). The International Energy Agency estimates that global EVs will grow 14 times to 145 million by 2030,” the company said.

Moving forward, Mr. Reyes said the uptrend in nickel prices is likely to continue in the following months due to production-consumption gaps.

“Major nickel producers are seeing lower output because of coronavirus disease 2019 (COVID-19) lockdowns and various operating issues but industrial manufacturing is still ramping up,” Mr. Reyes said.

Parent firm DMCI Holdings recorded a P5.23-billion attributable net income in the second quarter, surging from P1.42 billion a year ago. Its revenues for the quarter reached P29.76 billion, more than twice the P11.75 billion it reported in 2020.

On Tuesday, shares of DMCI Holdings rose 0.67% or four centavos to end at P6.03 apiece. — Revin Mikhael D. Ochave

1...6,0366,0376,038...12,638Page 6,037 of 12,638
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube