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Outstanding Property Award London 2020 honors Golden Bay Landholdings’ world-class projects

Golden Bay Landholdings wins big at the Outstanding Property Award London (OPAL). OPAL seeks the most exceptional architecture, interior design, and property development projects from around the world. Aspire Corporate Plaza and Garden City was awarded winners in the property development criteria of the critically-acclaimed awarding body. This is the developer’s first international win.

Garden City, OPAL 2020 winner in Property Development Category – Mixed-Use

Golden Bay Landholdings’ COO Jardin Wong shares that he and the rest of his team are elated for the international wins. Mr. Wong reminisces on the rigorous process of perfecting both properties with their architectural partners, ASYA Design and WTA Design Studio. “We all put in the time and the effort to create projects that really go beyond boundaries. We are glad we went through that process. We really took time to understand our projects’ impact on the general environment and community around it,” Mr. Wong states.

Both developments showcase exactly what the OPAL panel was looking for: Outstanding projects addressing creativity, innovation, social impact, and sustainability while creating a unique cross-industry platform that unites experts and talents.

Jardin Brian Wong, Golden Bay Landholdings COO

OPAL’s panel is composed of 29 highly-acclaimed architects, planners, interior designers, and purveyors. They judge the entries based on the project’s own merit and not against other entries. Entries are evaluated on creativity, form, function, and a clear relationship between the environment and end users.

According to OPAL, creativity alone is not enough to take home to be recognized by their panel. “It needs to show useful function and provide a better living experience for its users, meeting the clients’ expectations,” they share. These are elements that are visible in the architectural structure, sustainable design, and overall experience of both Aspire Corporate Plaza and Garden City. 

Mr. Wong points out that the odds of a local boutique developer like Golden Bay winning internationally was unexpected, making the wins even more satisfying. For tenants and partners of Aspire Corporate Plaza and the future residents of Garden City, the choice to invest in a Golden Bay property proves to be a solid investment backed by the distinguished OPAL jurors. “Fastened with our commitment to produce world-class innovation and creativity, Aspire Corporate Plaza and Garden City are not just assets, they are a legacy,” Mr. Wong points out. 

Aspire Corporate Plaza, OPAL 2020 winner in Property Development Category – Commercial, Low Rise

While Aspire Corporate Plaza launched last 2020 and Garden City is still in the works, the OPAL wins show that Golden Bay Landholdings is here to make a mark on the global stage of design and development. Standing tall beside major firms from all around the world, Golden Bay showcases the ingenuity of Philippine talent and architecture. This win is a step forward for aspiring Filipino designers everywhere. 

Mr. Wong shares that he and his team are grateful and honored for the awards but they are certain that this is just the beginning. More award-winning properties are on the drawing board and in the pipeline for Mr. Wong, his team, and his partners. The OPAL win has recharged and inspired them to create more world-class developments for the Philippines.

“Golden Bay Landholdings will continue to dream of exceptional projects that addresses social impact, environmental protection, inclusiveness, and real world purpose,” Mr. Wong shares.

 

 

 

BSP holds policy rate at record low

By Luz Wendy T. Noble, Reporter

THE Philippine central bank left its key interest rate unchanged at a record low on Thursday, as it supports an economy whose recovery is at risk from a renewed surge in coronavirus disease 2019 (COVID-19) infections.

The Monetary Board kept the overnight reverse repurchase rate at an all-time low of 2% for a third consecutive meeting, as predicted by 19 economists in a BusinessWorld poll last week. Rates for the overnight lending and deposit facilities were also maintained at 2.5% and 1.5%, respectively.

The government tightened some restrictions in Metro Manila and nearby provinces until April 4 in hopes of curbing the rising number of COVID-19 cases. As of Thursday, the Health department reported 8,773 new infections, with active cases nearing 100,000.

“The Monetary Board is of the view that prevailing monetary policy settings remain appropriate to support the government’s broader efforts to facilitate the recovery of the economy,” BSP Governor Benjamin E. Diokno said at an online briefing on Thursday.

The central bank kept policy settings steady since its December meeting, but Mr. Diokno hinted that they will respond accordingly when the need arises.

“The BSP is prepared to take immediate measures as appropriate to ensure that the monetary policy stance continues to support the BSP’s price and financial stability objectives,” Mr. Diokno said, stressing they will remain watchful for signs of a broader-based inflation.

Despite the recent spike, Mr. Diokno said the risk to the inflation outlook “appears to be broadly balanced” this year, and “leaning toward the downside in 2022.”

However, the BSP chief said further upside risks may emanate from tight domestic supply of meat products and pickup in global economic activity.

Downside risks come from the prolonged pandemic, the surge in COVID-19 cases, and challenges to the government’s mass vaccination program, Mr. Diokno added.

Headline inflation reached 4.7% in February, the highest since the 5.1% in December 2018.

“The Monetary Board emphasizes that the timely implementation of non-monetary interventions is crucial in mitigating the impact of supply-side pressures on inflation and thereby preventing them from spilling over as second-round effects,” Mr. Diokno said.

QUICKER INFLATION
Meanwhile, the central bank upwardly revised its inflation outlook to 4.2% this year, from the earlier forecast of 4% given in February. The average print for 2022 is seen at 2.8%, slightly higher than the previous projection of 2.7%, according to BSP Deputy Governor Francisco G. Dakila, Jr.

He said the February inflation print and the continued increase in global oil prices due to demand recovery were major factors to the inflation forecasts.

But Mr. Dakila stressed they still view the inflation uptick as “transitory” as it is mainly due to low supply.

“We are actually seeing that the inflation path will decelerate below the midpoint of the [2-4%] target range towards the fourth quarter of this year and continuing on to the first quarter of next year before settling close to the midpoint by the second half of next year,” Mr. Dakila.

Meanwhile, he said the BSP also raised its average Dubai crude oil price forecast to $61.37 per barrel (from $54.65 per barrel) this year, and to $57.79 per barrel (from $51.98) in 2022.

“As the global economy recovers, then oil prices will also recover and this has an impact on inflation,” Mr. Dakila said.

Despite the higher inflation outlook, Mr. Dakila said it remains necessary for the central bank to maintain its accommodative stance to support recovery. He added that supply-side factors should not trigger an “earlier-than-planned” exit from policy measures as this kind of inflation is better addressed by non-monetary actions.

“It is important that while the economic recovery is still in its nascent stage, then the monetary policy stance should continue to be supportive of the economy until such time that the recovery becomes fully self-sustaining,” he said.

ANZ Research Chief Economist Sanjay Mathur and analyst Rini Sen in a note said that while the BSP kept policy rates steady, its tone has become “more cautious on the underlying inflationary impulse.”

“We concur and do not expect any further rate action in 2021,” they said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the central bank may likely keep the rate settings in the near term, which could provide support to the peso’s stability.

“BSP may only consider a possible rate hike should inflation remain stubbornly high, which could disanchor inflation expectations and spark second-round effects such as wage and transport fare adjustments,” Mr. Mapa said.

S&P lowers PHL growth forecast

S&P GLOBAL RATINGS downgraded its Philippine growth forecast to 7.9% this year as the upward spike in inflation weighs on the consumption-driven economy.

“Inflation is high despite the lack of demand, on the back of sharp supply-side driven increases in food prices. We expect this to be transitory, but it does weigh on consumption in the first half of the year,” the global debt watcher said in a note on Thursday.

The latest outlook is more pessimistic than the 9.6% gross domestic product (GDP) projection it gave in September 2020. The GDP forecast for 2022 was likewise trimmed to 7.2% from 7.6% previously.

S&P’s growth forecast for the Philippines is the second highest in the Association of Southeast Asian Nations (ASEAN) next to Vietnam (8.5%), and is followed by Malaysia (6.2%), Singapore (5.8%), Indonesia (4.5%), and Thailand (4.2%). However, this outlook is partly due to a base effect as the Philippines also saw the steepest economic contraction of 9.5% last year in Southeast Asia.

The country’s headline inflation has accelerated in the past months. Inflation quickened to 4.7% in February, beyond the 2-4% target by the central bank and the fastest since the 5.1% print in December 2018. Higher prices of goods is hurting households, whose consumption fuels 70% of the economy.

The government traced the inflation surge to low supply caused by the typhoons last year as well as the African Swine Fever outbreak. A price cap on meat products has been imposed in Metro Manila and higher pork imports were allowed in response to the supply-side disruptions that caused the price hikes in food products.

Aside from the inflation, muted mobility and the slow pace of coronavirus disease 2019 (COVID-19) vaccinations will also temper the country’s growth trajectory this year, S&P said.

“Mobility indicators remain far below pre-COVID levels, and movement restrictions have extended far longer than we expected. We continue to expect a pickup in mobility in the second half of the year, but there will be a delay in economic recovery,” the credit rater said.

Tighter COVID-19 rules are in place in Metro Manila, Cavite, Laguna, Rizal, and Bulacan until April 4, as the number of COVID-19 cases continues to surge.

On Thursday, the Health department reported a record-high 8,773 new coronavirus cases, with active cases now nearing 100,000.

Data showed 1.12 million vaccine doses have been administered as of March 23. The government is targeting to inoculate 70 million Filipinos within the year to achieve herd immunity.

S&P said the country’s vaccination efforts have been “expectedly slow.”

As the crisis continues, S&P said the prospect of higher fiscal support this year “remains doubtful.”

“The lack of additional policy support implies a sharper downside risk if the economy’s mobility suffers further impediments,” the debt watcher said.

House Speaker Lord Allan Jay Q. Velasco on Wednesday said he got an assurance of support for the proposed P420-billion Bayanihan to Arise as One Act.

While 224 members of the House of Representatives support the stimulus package, economic managers have previously said this is not needed as pandemic response measures are already covered by the national budget as well as the prior Republic Act No. 11469 or the Bayanihan to Heal As One Act. 

Meanwhile, S&P said they expect the Bangko Sentral ng Pilipinas (BSP) to keep watch on the transitory rise in inflation.

S&P affirmed the country’s BBB+ long-term credit rating in May last year with a stable outlook, suggesting the rating may be maintained over the next 18-24 months. — Luz Wendy T. Noble

Philippines’ top 1,000 firms saw slow revenue growth even before pandemic

THE COUNTRY’S TOP 1,000 corporations saw their combined gross revenue grow at its slowest pace in four years in 2019, providing a baseline for how these firms were doing before the coronavirus pandemic hit.

The gross revenue of the top firms amounted to P12.303 trillion in 2019, 4.7% more than P11.754 trillion in the previous year. Meanwhile, their combined net income amounted to P1.455 trillion, 5.8% lower than the P1.545 trillion recorded in the year prior.

The 2019 performance of the top 1,000 marked the slowest gross revenue growth since the 2.8% clip in 2015. Moreover, the decline in aggregate profits was the first since the 18.5% plunge recorded in 2008.

Comparison of sectoral performance in 2019

To recall, Philippine gross domestic product (GDP) growth in 2019 grew at a revised rate of 6% at constant 2018 prices, the slowest in eight years or since 2011’s 3.9%. Similarly, nominal GDP growth — or output expansion based on current prices — was reported at 6.9% that same year, the slowest since the 5.6% showing in 2015.

Now on its 34th year, BusinessWorld Top 1000 Corporations in the Philippines ranks private and public stock entities based on gross revenue using the latest available full-year audited financial statements.

It should be noted that the latest data refer to firms’ performance in 2019, a year before the coronavirus disease 2019 (COVID-19) pandemic sent companies operating at below full capacity. Hence, these figures provide a baseline for how the country’s largest corporations were doing before the pandemic hit. The Philippine economy declined by 9.5% in 2020, its worst performance since the 1940s.

The latest edition of the Top 1000 had a gross revenue cutoff of P1.870 billion, lower than the previous edition’s P2.218 billion, considering the financial statements that were collected.

Petron Corp. grabbed the top spot on this year’s list with P323.273 billion in gross revenue. However, this was 10.5% lower compared with its gross earnings of P361.353 billion in 2018. The oil refiner and distributor also saw its profits plunge to P114.923 million from P6.337 billion the year before.

Second on the list is power distributor Manila Electric Co. (Meralco), which saw its gross earnings grow by 3.7% to P309.090 billion in 2019. On the other hand, its net income contracted by around 15% to P20.644 billion from P24.253 billion.

In the third spot was Pilipinas Shell Petroleum Corp. with P219.779 billion in gross revenue in 2019, inching down 0.03% compared with 2018 level. On the other hand, its net income jumped 10.7% to P5.62 billion.

Rounding out the top 10 are BDO Unibank, Inc., P196.226 billion; PMFTC, Inc., P172.765 billion; Toyota Motor Philippines Corp., P160.532 billion; Mercury Drug Corp., P160.180 billion; Philippine Airlines, Inc., P154.532 billion; Toshiba Information Equipment (Philippines), Inc., P139.523 billion; and Nestlé Philippines, Inc., P125.102 billion. 

The Top 1000 publication also provides a separate table ranking of these firms on a consolidated basis, that is, a parent company and its subsidiaries are treated as though they are a single entity. This is different from the main top 1,000 list wherein parent-only financial statements are used to account only for parent firms’ equitized earnings of their subsidiaries and associates. This was expanded to 200 firms in the latest edition from 100 in the previous release.

The list of the top 200 consolidated corporations saw San Miguel Corp. (SMC) and subsidiaries leading with P1.068 trillion in gross revenue in 2019, up 0.8% from 2018.

The consolidated business units of Top Frontier Investment Holdings, Inc. — San Miguel’s top shareholder — and Petron occupied the second and third spots with gross revenues of P1.068 trillion (up 0.9%) and P520.606 billion (down 7.7%), respectively.

The rest of the top 10 included SM Investments Corp. and subsidiaries, P506.295 billion; Mermac, Inc. and a subsidiary, P330.906 billion; Ayala Corp. and subsidiaries, P330.906 billion; Meralco and subsidiaries, P322.592 billion; San Miguel Food and Beverage, Inc. and subsidiaries, P313.803 billion; JG Summit Holdings, Inc. and subsidiaries, P307.596 billion; and GT Capital Holdings, Inc. and subsidiaries, P226.754 billion.

Of the 18 sectors represented by the top 1,000 corporations, 16 recorded revenue growth with five showing double-digit increases. Gross revenues of manufacturers, which made up 32.8% of the 2019 total, only went up by 0.7%, while those in the wholesale and retail trade (21.8% share) and financial and insurance activities (16.8% share), rose by 7.3% and 6.9%, respectively.

Multinational companies included in the latest edition made P4.204 trillion, 2.9% more than in the previous year and accounting for 34.2% of the Top 1000.

Exporting firms included in the Top 1000 recorded P1.819 trillion in revenues, 2.4% less than in the previous year. They make up 14.8% of total gross revenues in 2019.

BusinessWorld Top 1000 Corporations in the Philippines can be purchased at select branches of National Book Store, Powerbooks, Fully Booked, Office Warehouse and Rustan’s Supermarket. These can also be purchased directly through BusinessWorld’s Circulation Department at (+632) 8535-9940 loc. 250-258 or e-mail at bwcirculation@bworldonline.com. Or contact the Research Department at research@bworldonline.com for further inquiries. — L.O. Pilar

BoI investment pledges reach P137 billion so far

INVESTMENT PLEDGES approved by the Board of Investments (BoI) increased by more than 64% so far this year, the agency said.

Investments jumped by 64.65% to P137 billion as of March 19, compared with P83 billion in the first three months of 2020, Trade Secretary and BoI Chairman Ramon M. Lopez said in an online presentation on Wednesday evening.

Potential employment from these investments rose by 13.28% to 12,013 during the period versus 10,605 jobs last year.

The BoI accounts for the bulk of planned projects registered with investment promotion agencies.

The agency reached P1.02 trillion in approved investment pledges last year, or around 10% lower than the highest-on-record P1.14 trillion a year earlier and below the P1.25-trillion target set before the pandemic.

“We still reached a trillion level, so (it’s the) second highest,” Mr. Lopez said.

The bulk of last year’s total came from domestic infrastructure projects, including San Miguel Corp.’s airport project in Bulacan. Domestic investments in the first half of 2020 jumped by 166% due to the airport project, but foreign investments plummeted by 73% during that period.

To compare, BoI-approved investment pledges reached P617 billion in 2017 and P915 billion in 2018.

This year, the investment promotion agency is targeting P1.25 trillion in investment approvals, or 22.5% higher than last year’s tally as it anticipates more infrastructure projects to drive economic recovery.

Approved foreign direct investment (FDI) pledges among the country’s investment promotion agencies fell 71.3% to P112.12 billion in 2020, the lowest in three years, the Philippine Statistics Authority said.

FDI commitments are different from actual capital inflows tracked by the Bangko Sentral ng Pilipinas (BSP) for balance of payments purposes. Net FDI inflows fell by 24.6% to $6.5 billion in 2020, from $8.7-billion net inflows in 2019, due to the “disruptive impact of the pandemic on global supply chains and weak business outlook,” the BSP said.

The Philippine Economic Zone Authority (PEZA), another investment promotion agency, approved P13.19 billion in investment pledges this month.

The newest approved projects bring PEZA’s total to P24.5 billion for 2021 so far. PEZA green-lit P11.308 billion in investment pledges in January, or 139% higher than the P4.726 billion in the same month last year.

Meanwhile, Mr. Lopez in the same presentation said that Small Business Corp. (SB Corp.) has released almost P2.6 billion in loans to more than 22,000 businesses.

Under the COVID-19 Assistance to Restart Enterprises (CARES) program, the department was allocated P10 billion for lending to micro-, small-, and medium-sized enterprises from the Bayanihan II or Republic Act No. 11494.

Fewer small businesses have been applying for the loans amid low business confidence, Mr. Lopez said last month. — Jenina P. Ibañez

Stream ABS-CBN primetime dramas even before broadcast

ABS-CBN.COM/

THANKS to streaming services, catching a primetime show nowadays no longer requires waiting for the airtime slot or rushing home after a long day to catch a favorite program. Now there is a service that goes one step further — this month ABS-CBN Entertainment’s “Primetime Bida” series will be available to stream even before their local broadcast through a partnership with WeTV and iflix.

Since the network went off the air last year with the non-renewal of its broadcasting franchise, the partnership is one way for the network to make its primetime programs “available in as many digital platforms as possible,” said ABS-CBN CEO Carlo Katigbak in a video shown at the press launch announcing the partnership, which was held on Mar. 17 via Zoom.

“We continue to believe that ABS-CBN has the talent, the heart, and expertise to tell stories that can move the world,” Mr. Katigbak said.

PRIMETIME PROGRAMS
The long-running show FPJ’s Ang Probinsyano, as well as two new dramas —  Huwag Kang Mangamba and Init Sa Magdamag — will be the first primetime titles to be shown on the streaming platforms WeTV and iflix .

Now in its sixth year, FPJ’s Ang Probinsyano is one of the longest-running ABS CBN dramas. New episodes of the show will stream first on WeTV and iflix VIP 50 hours before they air on local television.

Episodes of Huwag Kang Mangamba will stream on WeTV and iflix VIP 46  hours before airing on local television.

Huwag Kang Mangamba  starring Andrea Brillantes, Seth Fedelin, Francine Diaz and Kyle Echarri — is set in the fictional town of Hermoso where two girls who die in separate incidents are miraculously brought back to life. Also in the cast are Sylvia Sanchez, Eula Valdes, Diether Ocampo, and Enchong Dee.

The third new series, Init Sa Magdamag, follows a love triangle starring Gerald Anderson, JM De Guzman, and Yam Concepcion. The show will premiere on WeTV and iflix VIP on Apr. 17, 46 hours before it starts broadcasting on local television.

The primetime dramas will also be available for free on WeTV and iflix two to three hours after they are broadcast on the Kapamilya Channel, A2Z, and TV5.

EVOLVING VIEWERSHIP
The partnership of broadcast and online streaming is a way to adjust to the evolving viewing behavior of audiences.

“One of our main goals for this year has been to give our users the power of choice when it comes to their entertainment, especially now that we are spending more time at home. Bringing excellent local content and compelling stories to you first is a big step in that direction, and we are excited to have ABS-CBN as our partner in this endeavor,” WeTV and iflix Country Manager for the Philippines Georgette Tengco said in a statement.

“We do not cannibalize each other’s businesses. In fact, digital complements broadcast services.” Ms. Tengco said at the press launch. “We saw that when we run their content like movies and series, the viewership base expands exponentially and reaches a different demographic and different target audiences.”

WeTV and iflix will soon introduce new functions on their streaming apps.

“We have recently introduced flying comments on the WeTV app, and very soon iflix will have the same feature. It allows viewers to post while watching the show,” Ms. Tengco said of the app’s new features which are meant to make the viewer feel like they are “watching with a community.”

New functions such as swiping left on the app to control brightness and swiping right to control volume are some of the upgrades underway.

“We want to make sure that the Filipino audience gets the content they want to watch, when they want to watch at their convenience,” Ms. Tengco said.

To stream the ABS-CBN Primetime Bida shows, download the WeTV app from the App store and Google Play. A monthly subscription is P99, quarterly is P269, and annually is P999. The iflix app is also available on the App store and Google Play. — Michelle Anne P. Soliman

Greenergy to build logistics, food complex in Batangas

GREENERGY Holdings, Inc. is set to construct a logistics and food terminal complex in a three-hectare property at Aplaya, Batangas City that would enable the distribution of farm produce to local and world markets.

The listed firm disclosed in a regulatory filing on Thursday that it signed a memorandum of agreement with Ala Eh Knit, Inc., an affiliate of Greenergy and listed AbaCore Capital Holdings, Inc,. for the establishment and operation of the logistics and food terminal complex.

The complex will house cold and dry storage facilities, agri-processing facilities, and other infrastructure needed for marketing and procurement activities.

Greenergy said that under the agreement, Ala Eh is set to amend its authorized capital stock to P1.5 billion; revise its primary purpose to allow it to enter in the business of operating, managing, leasing and developing the complex; and change its corporate name.

Under the signed memorandum of agreement, existing Ala Eh shareholders agreed to infuse the three-hectare property into Ala Eh in exchange for a number of shares equivalent to 40% of the company’s total outstanding capital stock.

Meanwhile, Greenergy agreed to subscribe to shares equivalent to 60% of the total outstanding capital stock of Ala Eh. The move allows Greenergy to acquire majority ownership of Ala Eh.

In a separate stock exchange disclosure, AbaCore said the location of the food terminal project is contiguous to the P6.5-billion property of Libertad Logistics Integrated Zone Builders Development Corp.

Previously, AbaCore announced that its board of directors authorized the purchase of Libertad via a merger or consolidated under a tax-free exchange that follows the National Internal Revenue Code.

According to the disclosure, Greenergy will manage and operate the logistics and food terminal complex once the terms and conditions under the memorandum of agreement and subscription agreement are met.

Greenergy is a listed company that has business interests in agriculture, real estate, agriculture tourism, renewable energy, and information technology.

Meanwhile, AbaCore has controlling interests in firms involved in financial services, real estate, gold mining, and coal mining.

On Thursday, shares of Greenergy at the stock exchange rose 1.88% or seven centavos to close at P3.80 each, while stocks of AbaCore increased 10% or eleven centavos to finish at P1.21 apiece. — Revin Mikhael D. Ochave

Music soothes pandemic blues as 2020 record sales hit high note

Drake, Billie Eilish, The Weeknd, BTS, and Taylor Swift

LONDON —  Turn on, tune in, and stay at home. That’s what millions of music fans did in 2020, with a rise in subscription streaming leading global recorded music revenue growth of 7.4%.

The market reported total revenues of $21.6 billion, marking its sixth consecutive year of growth, industry trade body the IFPI said in its Global Music Report on Tuesday.

The year’s top five best-selling artists were K-pop stars BTS, songstress Taylor Swift, rapper Drake, singer The Weeknd and teen sensation Billie Eilish.

“As the world contends with the COVID-19 pandemic, we are reminded of the enduring power of music to console, heal and lift our spirits,” IFPI Chief Executive Frances Moore said.

Total streaming, including both paid subscription and advertising-supported, rose 19.9% to $13.4 billion, accounting for 62.1% of total global recorded music revenues, IFPI said.

Paid subscription streaming revenues rose by 18.5% and there were 443 million users of paid subscription accounts at the end of 2020, the IFPI said.

The streaming figures compared to a decline in physical format revenues, which fell by 4.7%.

And with concerts and festivals canceled as countries went into lockdown to stop the spread of the coronavirus, revenues from performance rights dropped 10.1%.

“With so much of the world in lockdown and live music shut down, in nearly every corner of the globe most fans enjoyed music via streaming,” Ms. Moore said.

The IFPI said record companies had supported artists in making music despite the difficult circumstances.

Latin America remained the fastest-growing region, with recorded music revenues rising 15.9%, followed by Asia with growth of 9.5%,and Africa and the Middle East with 8.4%.

The US and Canada region grew by 7.4% in 2020, while Europe saw revenues rise by 3.5%.

In Britain, recorded music revenues rose to their highest since 2006, up 3.8% to 1.118 billion pounds ($1.54 billion), the British Phonographic Industry (BPI) said.

Streaming revenues, up 15.4% to 736.5 million pounds, led the growth while physical revenues fell 2.6% to 210.3 million pounds, with online sales cushioning the impact of lockdowns.

Online campaigns helped drive vinyl sales, which rose by nearly a third to 86.5 million pounds in Britain, their highest total since 1989, the BPI said. — Reuters

Regulators ease listing rules, set guidelines for SME sponsoring

By Keren Concepcion G. Valmonte

PHILIPPINE corporate regulators have approved the amendments in board listing rules and have released guidelines for small, medium, and emerging (SME) firms listing under its new sponsor model.

The Philippine Stock Exchange (PSE) published the memorandum detailing the changes, which the Securities and Exchange Commission (SEC) had approved last month.

The regulators will now be prioritizing net income reports over a company’s earnings before interest, taxes, depreciation, and amortization (EBITDA).

“The applicant company must have a cumulative net income, excluding non-recurring items, of at least P75 million for three full fiscal years immediately preceding the application for listing and a minimum net income of P50 million for the most recent fiscal year,” the memorandum stated.

Previous rules required companies to report a cumulative consolidated EBITDA, excluding non-recurring items, of at least P50 million for three consecutive years before the filing of its application.

The minimum net income requirement for the most recent fiscal year replaced the rule on having an EBITDA of at least P10 million for the past three years.

Those operating for at least 10 years before filing for listing may be exempted from the three-year track record requirement, provided that these companies have a cumulative net income of at least P75 million for two out of the three fiscal years before filing.

Regulations on market capitalization and minimum capital requirement have been removed. However, a specific requirement on stockholders’ equity has been adopted.

“The applicant company must have a stockholders’ equity of at least P500 million in the fiscal year immediately preceding the filing of the listing application,” regulators said.

Guidelines on minimum public offerings have also been updated. Companies with a market capitalization below P500 million must offer 33% or P50 million, whichever is higher; those with over P500 million to P1 billion must offer 25% or P100 million, whichever is higher; while those with over P1 billion must offer 20% or P250 million, which is higher.

Past rules on minimum public offerings covered those with market capitalizations worth up until P10 billion.

Meanwhile, market regulators have removed the minimum capital requirement for those listing under its SME board. The operating history for companies applying to the SME board has also been lowered to two years from three years.

The requirement for an EBITDA of at least P15 million remains, however, regulators put a requirement on revenues.

“[Companies must have] cumulative operating revenues or sales of at least P150 million for the three fiscal years immediately preceding the filing of the listing application or such shorter period as the company has been operating,” the memorandum said.

“[They must also post] an average net sales/operating revenues growth rate of at least 20% over the two fiscal years immediately preceding the filing of the listing application,” it added.

A stockholders’ equity of at least P25 million is also now required for those planning to list in the SME board.

Restrictions for SME board applicants include: no listing of portfolio and passive income companies, prohibition on backdoor listing, and no offering of secondary securities for companies exempt from the track record and operating history requirements.

SMEs that do not meet the requirements may opt to be listed via a sponsor.

“An applicant company that does not meet the required track record of profitable operations and/or stockholders’ equity may apply for listing with the favorable endorsement of a listing sponsor accredited by the exchange,” the memorandum said.

According to regulators, sponsors will maintain “the standard and quality of companies listed in the SME board under the sponsor model.” Sponsors are also expected to uphold the integrity of the market.

Sponsors should be corporations or partnerships registered with the SEC. They should also have at least five years of experience in a leading role or have at least two of its key personnel have the five-year leadership experience.

Regulators also require sponsors to be covered by a “professional indemnity insurance” equivalent to the value of the public offering to cover for damages resulting to investors, should the sponsor misconduct or be negligent in its sponsor responsibilities.

Sponsors are expected to submit a report, which includes assessment of the applicant’s business plan, future prospects, financial performance, and risks related to the applicant’s business and future prospects.

Listing applications should be filed by the sponsor on behalf of the listing applicant. Those planning to sponsor companies to be listed on the market are expected to do their due diligence on the applicant’s background.

Audio cassettes: despite being ‘a bit rubbish,’ sales have doubled during the pandemic – here’s why

Lady Gaga, Dua Lipa, and The 1975 have all come out with cassette tapes recently.

DESCRIBED by some as “Europe’s biggest tech show,” the Berlin Radio Show has long been famous for exhibiting the next big thing in consumer electronics. In 1963, that was the compact audio cassette, introduced at the time by its creator, the late Dutch engineer Lou Ottens, who died in early March.

Over the course of Ottens’ lifetime, cassette tapes came to redefine listening habits, which until then had been limited to the much more unwieldy vinyl record. Car stereos and the iconic Sony Walkman suddenly made individual listening experiences possible outside of the home. The re-recordable nature of the format, meanwhile, helped music fans collate and circulate their own mixtapes. At its peak in 1989, the cassette tape was shifting 83 million units per year in the UK alone.

Despite having been superseded in functionality first by the compact disc (CD) and then the digital file (mp3 and mp4), the audio cassette retains a special place in the history of audio technology, with mixtapes a precursor to playlists, and the Walkman the precursor to the iPod.

And, despite being considered aesthetically and materially inferior to the vinyl record that came before it, the audio cassette is actually experiencing something of a resurgence — partly for sentimental reasons, but also because, with gigs canceled, it’s a smart way for smaller artists to monetize their work.

Against a backdrop of a pandemic that has done huge damage to the music industry, 2020 could justifiably be called the year of the cassette. According to British Phonographic Industry (BPI) figures, 156,542 cassettes were sold in the UK last year, the highest figure since 2003 and an increase of 94.7% on 2019 sales. Seemingly out of the blue, global pop icons such as Lady Gaga, the 1975, and Dua Lipa have started rushing out their new releases on cassette — and they’re selling out.

For those of us who are old enough to remember the cassette tape as a common format of music consumption, their resurgence is somewhat puzzling. After all, even in their heyday, cassettes were always a bit rubbish.

They lacked the aesthetic appeal and the romance of the vinyl LP and its gatefold sleeve. Subsequently, they lacked the usability, flashiness, and sonic fidelity of the CD. And there is not a music fan alive over the age of 35 who doesn’t have a horror story to tell about a favorite album or mixtape being chewed up by a malicious car stereo or portable boombox.

Mr. Ottens himself was dismissive of the “nonsense” of a cassette revival, telling Dutch newspaper NRC Handelsblad that “nothing can match the sound” of the CD, the development of which he also played a key part in. For Mr. Ottens, the ultimate goal of any music format was clarity and precision of sound, though, in a nod to nostalgic listeners, he also conceded: “I think people mainly hear what they want to hear.”

As a scholar of popular music and material culture, I can’t help but wonder if Mr. Ottens’ strict utilitarian perspective misses a deeper point about the cassette tape and its recent resurgence as a medium in popular culture.

After all, the cultural enjoyment of music goes far beyond narrow debates about sound quality. Our enjoyment of music, and the cultural rituals surrounding that enjoyment, is a complex and deeply social thing that engages more than just our ears.

The ongoing revival of the record, for instance, is sometimes explained as a turn back to vinyl’s superior sound. But it’s just as often regarded as a cultural turn back to an iconic medium, steeped in musical history, that people can feel, handle, and experience together – unlike a digital file. Though they may be less iconic, cassettes also represent cultural moments of cherished significance to music fans.

In the mid 2010s, I investigated the first signs of this resurgence of cassettes within Glasgow’s indie and punk scenes as part of my PhD, talking to musicians, labels, and fans about the resurgence of cassette tapes. In these conversations, the materiality of these objects — their physical, tangible presence — was often highlighted as a motivating factor.

As one fan remarked to me: “I just like having things. They’re all kind of becoming a bit defunct now, but I just like having something. That’s my hobby, music is my hobby, and that’s how I spend my money.”

There’s also an economic component to the cassette resurgence. With debates raging about how music streaming services should reimburse artists, independent musicians have, for some time, been looking to the sale of physical products and merchandise as a means of generating income.

For Glasgow’s indie and punk bands, as with today’s independent artists, cassettes actually represented a cost-effective means of providing a physical product, far cheaper than pressing a vinyl record and printing sleeves and packaging. As one label owner put it, “we tend to release on tape because it’s cheap to manufacture, it’s easy to recoup, and it leaves money left over for the bands to get something.”

While the practices of these small, independent artists may feel quite far removed from the recent embrace of cassette tapes by mainstream pop stars, each arguably has their roots in a desire for analogue products we can touch in an increasingly digital world mediated via screens.

Many people have reported feelings of digital detachment and alienation during the pandemic. It doesn’t seem unreasonable to suggest that a desire for something we can actually feel, embellished with a nostalgic glow from a COVID-free past, may also explain the resurgence of the audio cassette, over 60 years since it’s Berlin debut.

 

Iain Taylor is a Lecturer in Music Industries at Birmingham City University.

PLDT-Smart: Almost 3 million customers shifted to paperless billing

PLDT, Inc. and its wireless arm Smart Communications, Inc. on Thursday said nearly three million of their combined customers have shifted to paperless billing as mobility restrictions continue.

“The telco has seen over 2.91 million customers shift to paperless billing as of February 2021,” PLDT and Smart said in an e-mailed statement.

PLDT and Smart said they expanded their digital payment channels and online billing services for transactions to encourage their customers to stay home.

“By using online payment channels, our customers do not have to physically go to our stores to pay their bills. It saves them time, money, and at the same time, protects them from possible exposure to COVID-19,” said Jane J. Basas, senior vice-president and head of consumer wireless business at Smart.

Alfredo S. Panlilio, Smart president and chief executive officer and PLDT chief revenue officer, noted both companies have various platforms for their customers to allow them to accelerate their own digital transformation.

Last year, PLDT saw its total revenues grow 7% to P181 billion, with service revenues increasing 8% to P173.63 billion amid an accelerated shift to digital services.

PLDT’s telco core income grew 4% to P28.09 billion.

The company attributed the 73% of its net service revenue of P171.5 billion to data.

Its individual business contributed P82.7 billion (up 15%) to the service revenues, followed by home at P41.4 billion (up 11%), and enterprise at P41.2 billion (up 5%).

PLDT intends to spend between P88 billion and P92 billion this year, mainly to support the rise in mobile data traffic.

PLDT shares closed 0.16% lower at P1,248 apiece on Thursday.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Non-completion of financial condition caused termination of Balagtas water deal – Manila Water

MANILA WATER Co., Inc. said its concession deal in Balagtas, Bulacan was terminated after the area’s water district’s failure to complete a section in the issued notice of award.

In a regulatory filing on Thursday, the east zone water concessionaire disclosed that the notice of award was revoked and terminated as a result of the non-completion by Balagtas Water District (BWD) of a precedent financial condition.

Manila Water did not disclose the specific financial condition but said it was decided upon by the parties during the issuance of the notice of award.

“With this and despite the best efforts of both parties, the joint venture between the consortium of Manila Water and Manila Water Philippine Ventures, Inc. (MWPV) and the BWD will no longer proceed,” the company said in the disclosure.

Manila Water announced in a stock exchange disclosure on March 23 that it had officially received BWD’s decision to revoke and terminate the notice of award for the water project.

In April 2018, the consortium of Manila Water and MWPV was awarded a 25-year concession deal to implement P400 million worth of water and used water projects in Balagtas. The deal was estimated to provide 22 million liters of water to customers in the area. 

Under the concession deal, Manila Water was set to create a joint venture company together with BWD and MWPV for the water project.

The joint venture was supposed to design, construct, rehabilitate, operate, maintain, finance, expand, and manage the water supply system and water and sanitation services in Balagtas.

Manila Water reported an attributable net income of P4.50 billion last year, a drop of 18.2% year on year, as a result of lower contribution from its domestic subsidiaries because of the pandemic.

The company disclosed that its consolidated operating revenues for 2020 fell 2.4% year on year to P21.13 billion due to weaker contributions from its Estate Water and Boracay Water.

BusinessWorld sought the comment of BWD regarding the concession deal but has not received a response as of deadline time.

On Thursday, shares of Manila Water at the stock exchange fell 0.42% or six centavos to close a P14.30 apiece. — Revin Mikhael D. Ochave

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