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IMI losses swell as virus disrupts business

LOSSES of Ayala-led Integrated Micro-Electronics, Inc. (IMI) ballooned to $4.62 million in the first quarter due to the global impact of the coronavirus disease 2019 (COVID-19) pandemic.

The global electronics manufacturing firm reported yesterday the exponential growth of its attributable net loss to close to $5 million from $335,000 last year. Its revenues contracted 21% to $255.82 million, and gross profit slumped 33% to $19.47 million. Revenues from wholly-owned businesses fell 19% to $209 million.

IMI’s operating units in Asia posted a revenue decline of 20% to $105 million, reflecting the effect of closing facilities in China in February and in Luzon, Philippines in mid-March.

While plants in Europe and North America remained fully operational during the three-month period, revenues still dropped 15% due to market disruptions in the global chain.

The combined revenues of Via Optronics and STI Enterprises, Ltd. also went down 27% to $47 million.

Despite the sour turnout in the first quarter, IMI Chief Executive Officer Arthur R. Tan said the company is hopeful that its geographic diversity will help lift its performance in the coming months.

“The company’s wide geographical footprint gives us the flexibility to shift and address demands across all our regions as the pandemic situation continues to affect global markets,” Mr. Tan was quoted in a statement as saying.

IMI has 21 manufacturing plants across 10 different countries, namely the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Mexico, Serbia, United Kingdom and the United States.

The company also said it is adapting to the challenges by “controlling overhead costs, reducing raw material expenses, and securing ongoing support from various governments including Bulgaria, China, Czech Republic, Germany, Serbia and Singapore.”

“Despite these turbulent times, we firmly believe that the strategies we set forth in building towards a sustainable, interconnected future continue to be very relevant,” Mr. Tan said.

Shares in IMI at the stock exchange in up six centavos or 1.03% to P5.91 each on Thursday. — Denise A. Valdez

Money Heist: A show that connects to the periphery of the world

WHEN it first aired on Spanish television channel Antena 3, La Casa de Papel, also known as Money Heist, was a failure: it had falling viewership and its creator álex Pina, the cast, and the crew thought it was over, that there was no hope for the series. But then it was picked up by Netflix and suddenly it became one of the most-streamed titles on the service globally and even won an Emmy award for Best Drama series in 2018.

“[The series was a failure.] It was like a zombie. [Viewership fell from] 4 million to 2 million. We were going to put an end to it. I couldn’t even convince my friends to watch it. And then Netflix bought it June 2017 and some months after, in December, they uploaded it,” Javier Goméz Santander, the show’s screenwriter and co-executive producer, said in a webinar organized by Instituto de Cervantes Manila on April 28.

(The webinar was done in Spanish with simultaneous English translation.)

He said they noticed that the series was getting traction in February when, during a football match in Saudi Arabia, the bleachers transformed into the show’s Salvador Dalí mask. Then the same mask sold out in Rio de Janeiro. There were also a few copycat crimes.

“It was more popular outside Spain,” Mr. Goméz Santander said.

Money Heist is, as its name suggests, a heist film, but it’s distinctive Spanish sensibilities made it different: from having the film told through a female perspective, to a focus on the emotional dynamics and passionate scenes distinctive of telenovelas, and dark comedy. Mr. Goméz Santander noted that the beauty of the series is it was told from “the periphery of the Anglo-Saxon world.”

“[The series is] more emotional… and we found ourselves an incredible platform which is our language. We discover that the periphery of the world… have a common vision,” he said before adding that it’s time to have more stories coming from the periphery (outside Hollywood) because “we’ve exhausted the Anglo-Saxon narrative.”

If there was one thing that he thinks Money Heist has successfully done is that he thinks the world will be seeing more “products from all the peripheries.”

Money Heist’s plot is fairly simple: the first season revolved around a plan to rob the Royal Mint of Spain, which involved the thieves taking 67 hostages, printing 2.4 billion euros, and then escaping. The entire plan was orchestrated and controlled by the Professor (álvaro Morte) from an external location. Each person in the group wore a red jumpsuit and a Salvador Dalí mask and went by a code name using cities (Tokyo, Moscow, Nairobi, etc).

The show was supposed to end there — its creator, álex Pina, initially planned for it to be a limited series. But then Netflix asked them to write another season, Mr. Pina said in the documentary Money Heist: The Phenomenon. He said it took them two months to get back to Netflix and make a second season.

(Each Money Heist season is divided into two parts. The most recent release was the second half of the second season on April.)

“The biggest decision was to decide to come back or not to come back. After the Mint, it was dead and it was done. But Netflix said if you want to reopen it then we’re game. We didn’t want to destroy that myth. It was very difficult,” Mr. Goméz Santander said in the webinar.

“You don’t write stories about people in paradise,” he added.

At the end of Season 1, the group managed to escape and celebrate their spoils. The Professor chose to vacation in Palawan. In the second season, he finds refuge in an undisclosed location in Mindanao. The second season also introduced a character who goes by the name Manila (played by Belén Cuesta), a transwoman who is the godchild of Moscow (Paco Tous) and Denver’s (Jaime Lorente) childhood friend.

The idea of including the Philippines in the show was sentimental, said Mr. Goméz Santander as Mr. Pina had been to the Philippines and had gone to Mindanao and loved it. It should be noted that the scenes which are supposedly set in Mindanao were actually shot in Madrid, though Mr. Goméz Santander said they did shoot a few scenes in the Philippines.

In the second season, the gang’s target is the Bank of Spain.

With much of the world currently under varying degrees of quarantine due to the COVID-19 pandemic — Spain has the second-most number of cases after the US at 236,899 so far — Mr. Goméz Santander said that much like the characters of Money Heist, “we need to accept a more intense world.”

“We put the characters [under so much pressure] — in jail and in a ship. Why we resort to this is to elevate the emotions with characters and viewers. [It’s like being in a] pressure cooker, everything is magnified. We now find ourselves in a very similar situation,” he said.

“And that has affected our mental health… it’s important that we are aware that we’re subject to this pressure and to be able to do as best [as we possibly can] to manage the situation,” he added. — Zsarlene B. Chua

SEC eases rules for company registration

THE Securities and Exchange Commission (SEC) will now allow companies to register without having their articles of incorporation notarized.

The commission approved on Wednesday a new memorandum circular allowing domestic corporations to register using articles of incorporation accompanied by a certificate of authentication signed by all incorporators.

Both these documents will be accepted without having them notarized or consularized.

“By easing the requirements for company registration, we hope to further encourage the formation of businesses and attract more investments that will subsequently generate more employment opportunities and support our economy’s overall growth,” SEC Chairperson Emilio B. Aquino said in a statement.

If a company’s articles of incorporation is executed abroad, it must be apostilled or authenticated by a Philippine diplomatic officer. The same would apply for a company that has more than 40% foreign equity, which must register as an investment of a non-Philippine national.

The SEC warned that if a corporation is found to have committed fraud in the process of registering, its certificate of registration will be revoked by the commission. Persons that assisted in the fraud will also be fined P200,000 to P2 million. If the violation is found detrimental to the public, the fine will be P400,000 to P5 million. — Denise A. Valdez

Gavel&Block to hold online benefit auction

SALCEDO Auctions’ subsidiary Gavel&Block will hold an online benefit auction on its official website on May 23, 2 p.m., to support communities affected by the COVID-19 enhanced community quarantine. The fundraising auction will be for the benefit of the international hunger relief organization Rise Against Hunger (RAH) Philippines.

For sale at the benefit auction are more than 200 lots of fine and decorative art, furniture, jewelry, and timepieces, as well as fashion pieces.

Highlighted in the upcoming auction is an oil painting titled Tianzi Mountain 1341 (2013) by portraitist and landscape artist Besty Westendorp. The painting depicts Tian Zi mountain located in China’s Hunan province.

“There was an art lover who wanted a painting done by me, but requested to put some mountains in the painting. I was surprised because I never painted mountains,” Ms. Westendorp said during the Gavel&Block community call via Zoom on April 26.

Ms. Westendorp recalled scanning images of mountains online when she was amazed by photos of Tian Zi mountain. “It’s very nice that we get to reach the world in our hands. When I saw that site, I got carried away.”

Other works to go on the block are National Artist Benedicto “BenCab” Cabrera’s 2013 digital print of (Untitled) Lady with Fan, conceptual artist Roberto Chabet’s House 1979 (1985), fine prints by National Artist Arturo Luz, as well as works by Fernando Zobel, Carlos “Botong” Francisco, Anita Magsaysay-Ho, and Nena Saguil. Contemporary art pieces by Rod Paras Perez, Lilo Gutierrez, Lynyrd Paras, Ronyel Compra, and Medicom Jean-Michel Basquiat will also go under the gavel.

Modern Filipiniana pieces were donated by fashion designers Jojie Lloren, Len Cabili, and Joey Samson, while photographs by Veejay Villafranca, Paco Guerrero, Denise Weldon, and Sonny Thakur are also for sale. The auction will also feature fashion accessories from designers such as Bea Valdes, Aranaz, Joanique, and FINO.

“Art enables us to get together for a good cause,” Salcedo Auctions director Richie Lerma said in the community call.

A substantial portion of the proceeds from the auction will be allocated for RAH Philippines’ food distribution and aid to communities affected by the quarantine. Adhering to dietary and food safety standards, RAH Philippines ensures that each family member receives 1,500 to 2,000 calories per day. As of April 26, the organization has reached 19,687 families, 200 people with disabilities, 400 homeless people, and 30 hospitals.

Consignments for the fundraising auction are still being accepted. Those interested in supporting this fundraiser can send pictures of their fine and decorative art to info@salcedoauctions.com or contact (0917-825-7449 or 0917-107-5581). For more information, visit https://salcedoauctions.com/. — Michelle Anne P. Soliman

Robinsons Land gets top rating for P20-B bonds

ROBINSONS Land Corp. (RLC) has received the highest credit rating from a local debt watcher for its planned bond issuance of up to P20 billion.

In a disclosure to the stock exchange on Thursday, the Gokongwei-led real estate company said it had been given a “PRS Aaa” credit rating by the Philippine Rating Services Corp. (PhilRatings) for its proposed bond issuance.

The company is looking to issue P10 billion bonds with an oversubscription option of up to P10 billion.

A PRS Aaa credit rating means RLC is expected to have an “extremely strong” capacity to meet its financial commitment. The rating was also given a stable outlook, meaning it is expected to hold for the next 12 months.

PhilRatings said the issue rating was based on RLC’s solid competitive position, healthy liquidity, sound capitalization and solid fundamentals amid the coronavirus pandemic.

“PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to RLC and may change the ratings at any time, should circumstances warrant a change,” it said.

RLC’s net earnings in 2019 climbed 6% to P8.69 billion, driven by a P1.02-billion increase in revenues to P30.58 billion. Its shares at the stock exchange stood at P15.04 each on Thursday, down 44 centavos or 2.84% from a day ago. — Denise A. Valdez

Rising through adversity with a song

Filipina alternative R&B singer August Wahh has released a new single titled “Elated” described as a song about recovering one’s self.

“I wrote ‘Elated’ as a reminder to myself and to others that no matter what you’ve been through, the goal is to rise above situations that made you feel small — by accepting where you’ve been and the journey you’re on, even if you don’t know where you’re going,” Ms. Wahh said in the release.

“It’s a reminder to own yourself and live life to the fullest,” she added.

Ms. Wahh released her first single, “Know What I Want,” in December 2019. Her newest single is said to make for “both easy casual listening and soulful rumination.”

The song was produced by King Puentespina, better known by the moniker crwn.

“The song was basically written on the spot. crwn had a beat he played, and I wrote along it. On the same day, we recorded ‘Elated,’” Ms. Wahh said.

This isn’t the first time the two artists collaborated as Ms. Wahh and Mr. Puentespina worked together on the song “Gaslight” last year.

Ms. Wahh’s music is known for promoting self-worth which is part of her personal mantra.

“She asks rhetorically ‘does it matter where I go?’ while also guaranteeing to own every decision she makes, tackling the age-old question with emotional openness and introspection,” the statement read.

August Wahh’s new single “Elated” is out on streaming and digital platforms worldwide. The YouTube lyric video can be viewed here: https://www.youtube.com/watch?v=zYgsI1-2518

Cathay Pacific readies more passenger flights to Manila

The Hong Kong-based Cathay Pacific Group (Cathay Pacific) is planning to augment the number of its flights to Manila in June.

In a recent advisory posted on its website, the group said Cathay Pacific intends to operate three flights per week in May to Manila, Tokyo (Narita), Taipei, Bangkok, Jakarta, Ho Chi Minh City and Singapore.

From June 21 to 30, the group said Cathay Pacific will operate “daily flights” to Manila, Tokyo (Narita), Osaka, Seoul, Taipei, Bangkok, Jakarta, Ho Chi Minh City and Singapore.

It said the additional passenger flights in June will increase its passenger network’s operating capacity by approximately 5%.

Also in May, Cathay Pacific plans to operate two flights per week to London (Heathrow), Los Angeles, Vancouver, Sydney and Delhi.

In the same month, Cathay Dragon, a wholly owned subsidiary of Cathay Pacific, will be operating three flights per week to Beijing, Shanghai (Pudong) and Kuala Lumpur.

The group said further that Cathay Pacific intends to operate five flights per week from June 21 to 30 to London (Heathrow), Los Angeles, Vancouver, Sydney; and three flights per week to Amsterdam, Frankfurt, San Francisco, Melbourne, Mumbai and Delhi.

It said Cathay Pacific or Cathay Dragon will be operating daily flights to Beijing and Shanghai (Pudong) during the same period.

Cathay Dragon also plans to operate daily passenger flights to Kuala Lumpur from June 21 to 30.

The group said the planned flight sules are still subject to government travel restrictions.

“We will continue to monitor the developing situation and further adjustments may be made as necessary,” it said. — Arjay L. Balinbin

Gen-Z cites lack of networks as career hindrance

YOUNGER workers have identified the lack of networks as the main hindrance to their careers, LinkedIn said, citing the results of a study.

In the “LinkedIn Opportunity Index 2020” report released Wednesday, LinkedIn said 78% of Filipino workers cited strong networks as key to opening up opportunities, while 84% of Generation Z, the youngest members of the current workforce, cited their lack of important connections.

“This indicates that there may be a knowledge gap on just how exactly to go about building a reliable professional network,” LinkedIn said in a statement Wednesday.

LinkedIn also reported that 68% of the Baby-boom generation said they had “moderate to strong” networks.

“Network gaps” are influenced by factors such as the school one graduated from and cities they reside in, LinkedIn added. Those from top schools and in major cities believe they have stronger networks.

LinkedIn said that professionals can tap readily available platforms such as LinkedIn to seek advice on work-related concerns. Other resources such as LinkedIn Groups also offer the opportunity to boost their connections with professionals in the same industries.

LinkedIn Managing Director for Asia Pacific Olivier Legrand said in the statement: “During challenging times like this, we believe it is all the more important to build stronger networks. This can potentially aid us in seeking out new opportunities even as we weather through, and recover from this crisis.” — Gillian M. Cortez

Oscars to admit streamed films next year as coronavirus upends movie going

LOS ANGELES — The organizers of the Oscars said on Tuesday that films released only on streaming platforms or video on demand while movie theaters are closed due to the coronavirus pandemic would be eligible for Academy Awards next year.

The temporary change, which will apply only for next year’s Oscars and will lapse when movie theaters reopen across the nation, was announced in a statement by the Academy of Motion Picture Arts and Sciences.

Previously, a movie had to be screened in a movie theater in Los Angeles for at least seven days in order to be eligible for Oscar consideration.

“The Academy firmly believes there is no greater way to experience the magic of movies than to see them in a theater. Our commitment to that is unchanged and unwavering. Nonetheless, the historically tragic COVID-19 pandemic necessitates this temporary exception to our awards eligibility rules,” President David Rubin and Chief Executive Dawn Hudson said, referring to the disease caused by the virus.

Streaming platforms like Netflix have upended Hollywood, drawing A-list stars such as Robert De Niro and Martin Scorsese and producing award-winning content like 2019 best foreign language winner Roma that have rivaled what traditional movie studios can offer.

Movie theaters across the United States shut their doors in mid-March, forcing the postponement of major film releases. The three main movie theater chains — AMC, Regal and Cinemark — have said they do not expect to reopen until late June or July.

Some films, including Universal Pictures CMSCA.O animated Trolls World Tour, have been released directly to streaming platforms or video on demand.

Universal will do the same with the upcoming Judd Apatow comedy The King of Staten Island, while Walt Disney has announced it will release children’s fantasy film Artemis Fowl on its Disney+ streaming platform rather than wait for theaters to reopen. Others are expected to follow.

The Oscars, the highest awards in the movie industry, are still scheduled to take place in Hollywood on Feb. 28, 2021. — Reuters

Alsons’ P1-B debt papers rated above average

THE Alcantaras’ Alsons Consolidated Resources, Inc. (ACR) on Thursday said it had been given an above-average credit rating for the latest tranche of the P2.5-billion commercial papers it registered with the Securities and Exchange Commission in 2018.

In a stock exchange disclosure, the listed firm said it had received a PRS (Philippine Rating Services Corp.) A plus rating and a stable outlook for the second tranche of its commercial papers amounting to P1 billion.

The credit rating meant that the company has an above-average capacity to meet its financial commitments.

Among factors cited by PhilRatings as basis for the rating were “the positive growth prospects for Mindanao which will bring about an increasing demand for power” and the company’s “ability to establish joint ventures with strong partners for particular projects.”

The stable outlook, on the other hand, meant that the rating is likely to be maintained or to remain unchanged in the next 12 months.

Meanwhile, ACR sees no major delay in the projected start of the commercial operations of its two on-going power plant projects in Mindanao.

One of these is the 14.5-megawatts (MW) hydroelectric power plant at the Siguil River basin in Maasim, Sarangani province, which is expected to begin commercial operations in 2022.

The other one is the 105-MW San Ramon Power, Inc. baseload coal-fired power plant in Zamboanga City, which is slated to commence operations in 2023.

“Even with the current quarantine, we do not foresee a major delay in the targeted commencement of operations for our Siguil and SRPI projects,” ACR Executive Vice President and Chief Executive Officer Tirso G. Santillan, Jr. said in a statement.

On Thursday, shares in ACR were unchanged at P0.92 each. — Adam J. Ang

Metrobank Q1 income falls as it doubles provisions for loans

METROPOLITAN BANK & Trust Co. saw its net income decline. — BW FILE PHOTO

METROPOLITAN BANK & Trust Co. (Metrobank) posted a lower net income in the first three months of 2020 as it set aside bigger loan provisions to prepare for the impact of the coronavirus disease 2019 (COVID-19).

In a filing with the local bourse on Thursday, the bank said its net profit in the first quarter settled at P6.1 billion, declining by 9.33% from the P6.75 billion seen a year ago.

“Recognizing the potential impact of the COVID-19 pandemic, the bank proactively doubled provisions to P5.0 billion, which tempered this quarter’s net income…,” it said in a statement.

“Our underlying business is strong. We started the year with healthy growth in loans, deposits and other revenue streams,” Metrobank President Fabian S. Dee said in the statement.

“However, current conditions point to an expected slowdown in the business environment and challenges ahead. Mindful of the potential impact of this pandemic, we decided to take the prudent approach of increasing provisions to cover anticipated risks. We have weathered periods of crisis in the past and we are confident that we are well prepared, as the bank has one of the strongest capital positions in the industry. We will continue to adjust our processes to ensure the sustained delivery of meaningful banking services; and implement the necessary measures to keep both our customers and our people safe,” Mr. Dee added.

Gross operating revenues from January to March climbed 13% to P27.6 billion while operating costs grew 8% to P14.5 billion. This caused its cost-to-income ratio to improve to 53% from 56% a year ago.

Growth in the bank’s core business came on the back of the 13% jump in gross revenue due to an eight percent rise in deposits and as its non-interest income reached P6.2 billion, driven by the 7% growth in service fees and commissions to P3.3 billion and net trading and foreign exchange gains of P1.4 billion.

The bank’s net loans and receivables went up six percent to P1.4 trillion during the period as it boosted support for customers’ business requirements across all segments such as corporates, middle market, SMEs (small and medium enterprises) and retail.

The quarter saw the bank’s nonperforming loan (NPL) ratio relatively stable at 1.4% while the NPL cover was at 114%.

“To anticipate the possible impact of the pandemic, the bank increased provisions to P5 billion, more than double the P2.4 billion in the first quarter last year,” Metrobank said.

Total deposits increased 8% to P1.7 billion during the period due to the 18% growth in current account, savings account (CASA) deposits. This improved CASA ratio to 66% from the 61% seen in the comparable year-ago period.

Meanwhile, Metrobank’s total asset base stood at P2.4 trillion while total equity was at P305 billion.

Capital adequacy ratio stood at 17.6% at end-March, while its common equity Tier 1 ratio was at 16.3%, both above the minimum regulatory levels.

The Ty-led lender’s shares ended trading at P39.05 apiece on Thursday, up by 3.86% or P1.45 from its previous close. — L.W.T. Noble

New lawyers urged to harness technology to deliver better justice

THE Integrated Bar of the Philippines (IBP) said the more than 2,000 passers of the 2019 Bar examinations must harness technology to deliver better justice.

“Your passing the bar exams during a world pandemic should remind you that countries and jurisdictions are intertwined in many ways; that technology can be harnessed to significantly improve the administration of justice and the practice of law; and that we can help our community and country beyond traditional lawyering,” according to the IBP President Domingo Egon N. Cayosa, in a letter to the new lawyers.

“Have a broad perspective and measure up to global standards. Use technology to efficiently deliver justice and more importantly to promote peace, conscientiously advance the interest of your clients, and help the less fortunate in your community and in our country,” he added.

A total of 2,103 out of 7,685 examinees passed the Bar exams held last year, for a passing rate of 27.36%.

The new lawyers are led by Mae Diane M. Azores from University of Santo Tomas in Legazpi City, who topped the Bar with a score of 91.05%.

“Be confident. Do not be afraid. Be true to your lawyer’s oath and be mindful of your ethics, for lawyering is not just a livelihood but a vocation,” it said.

Associate Justice Estela M. Perlas-Bernabe, who chaired the Bar committee, said at a virtual briefing that the passing score was lowered to 74% from 75%.

She noted the need for “younger and technologically adept lawyers to help different fronts of society as we meet the peculiar challenges brought about by the COVID-19 pandemic and transition to the new normal.” — Vann Marlo M. Villegas