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A time to laugh: how some performers react when the pandemic hits their gigs

Let me start with a familiar story: a wrestler, two comedians, and a comic book artist all walk into a bar… except they don’t, because there’s a pandemic, and we’re all still stuck at home.

Standup comedian Micah Andres had wrestler, lawyer, and musician Trian Lauang, comic book creator Rob Cham, and comedian and writer Israel Buenaobra over on his webshow, Nagmamarunong, late last month to talk about their situations in quarantine, and to see as well the new directions they may take when it comes to performing acts during the pandemic. “A lot of people do overlook artists during the ECQ. A lot of us have artist friends who we should be reaching out to kasi feeling ko nasisiraan na sila ng ulo (because I feel that they’re going crazy),” began Mr. Andres.

Mr. Andres asked everyone when they last had a gig. As a member of a band, Mr. Lauang said, “2019!” Apparently, in years past, they would begin collecting gigs late in January or in Februray, but the eruption of Taal volcano earlier this year interrupted that. March and a pandemic rolled in after that. “On the band front, we are doing absolutely nothing,” he said, and was greeted by laughs. He cites the difficulty of exchanging ideas over chat, as well as not being in a studio.

He said it’s his gig in wrestling that might be most affected. Aside from the fact that there wouldn’t be live audiences to watch them, “In wrestling, you get used to getting hurt… if you don’t do that for a long time, sobrang maninibago na naman kami (it will feel like we are starting over all over again).”

“That’s what scares the most of us right now. Kaya pa ba namin tumanggap ng sakit ng katawan (can we still deal with physical pain)?”

Meanwhile, Mr. Andres asked Mr. Cham about how being under a community quarantine affects his art. “A lot of [time] is spent watching the news; trying to pay attention to what’s happening.” He admited that he sometimes finds himself in a funk, not being able to draw anything. “Getting clients is a lot harder. Trying to talk to clients; trying to get paid is a lot harder because usually it’s bank deposits.”

Mr. Buenaobra keeps himself busy with a comedy webshow. “The show keeps me sane, kahit papaano (somehow). It gives me a reason to put on a T-shirt.”

Mr. Cham made a point about why performers like his co-panelists and artists like him are having a hard time. “People can’t really spend that much on culture. In the case of you guys as comedians, musicians, and wrestlers, you need a public venue to do that. On my end, will they spend on art?”

Mr. Buenaobra thought about the scene for performers like him when the lockdown ends, as we enter what everybody calls “The New Normal.” “Kailangan pa natin magbenta ng tickets para kumita tayo. Iyon ang mahirap dito (We’ll need to sell tickets to earn. That’s what’’s hard here).” He also noted that the restaurants and bars they normally perform in might be reluctant to take them in due to their own losses during the lockdown. Mr. Lauang pointed out that a lot of those places may not even survive.

As mass gatherings are not allowed right now, they were asked when they could start performing again. “Kayo ba, gusto niyo magperform (you guys, would you like to perform) for a crowd shortly after ECQ is lifted?” Mr. Lauang pointed out the risks involved in wrestling, which would entail body contact between performers, increasing a risk of infection. “Would you risk that for something [that is] not necessarily an essential service?”

Mr. Buenaobra said, “Ang matutuloy lang siguro ay iyong Open Siomaic every Tuesday kasi ganoon kakonti iyong tao,” making a joke about his small audience draw during a gig at a Quezon City bar.

Since he also performs from home via a webshow, he points to a new direction of comedy. “Masasanay tayo na for comedians na mag-perform in front of a camera (We’ll get used as comedians to perform in front of a camera).” But he noted the difficulties of this — that there would be “Minimal or no feedback at all,” since you can’t always hear laughter online. “Ano pang magagawa ng laugh reacts sa baba?,” he said, referring to the laughing reaction button Facebook employs. He also joked about the slow internet speeds in the country: “Naka-panlimang joke ka na, unang joke mo pa lang tinatawanan (You’re on your fifth joke, and they’re still just laughing at your firste).”

As a wrestler, Mr. Lauang bills himself as the “Inch for Inch Best Wrestler in The World” (it’s a joke about his height) but still said pretty big words: “We’ll find a way. That’s the thing about art: it’s always growing, it’s always evolving. We’ll find a way, because we want our [stuff] out there for people to consume.” — Joseph L. Garcia

DLSU’s A Fire in the Soul cantata gets limited online showing

To mark the 70th anniversary of the declaration of St. John Baptist de La Salle as the Patron of Teachers, De La Salle University will stream A Fire in the Soul, a cantata about the De La Salle Brothers during World War II, from May 15 to 17 on its YouTube channel.

It also serves as a tribute to acclaimed Lasallian artist and director Peque Gallaga, who passed away recently.

Created by Gabby Fernandez, A Fire in the Soul was one of the highlights of the yearlong centennial celebration of De La Salle University in 2011. Vicente Garcia Groyon wrote the libretto and Von de Guzman composed the music.

The cantata may be viewed at the DLSU YouTube channel at www.youtube.com/dlsu100.

SM Prime profit slips 5% amid mall closures

By Denise A. Valdez, Reporter

SM Prime Holdings, Inc.’s profit slipped by 5% dip in the first quarter, as its shopping malls in the Philippines and China were forced to close due to the coronavirus disease 2019 (COVID-19) outbreak.

In a statement Friday, the Sy-led property developer said its consolidated net income in the first three months of 2020 fell to P8.3 billion from P8.8 billion the same period last year.

Total revenues dropped 3% to P25.8 billion, as its mall business, which accounted for 47%, suffered due to enhanced community quarantine (ECQ) implemented in Luzon in mid-March.

Malls in the Philippines saw a 16% decline in revenues to P11.3 billion, as mall rental income fell 12% to P10.1 billion. SM Prime had limited the operations of its mall network in the country to essential stores starting mid-March.

The company earlier announced it will waive rent for all tenants in its shopping malls that are not able to operate during the ECQ period.

In China, the company operates seven malls which closed as early as January 25 due to the COVID-19 outbreak. They reopened starting February 10 and are now running at 80% capacity and slowly getting regular foot traffic.

SM Prime’s residential segment, operated by SM Development Corp. and comprising 44% of the company’s total revenues, posted a 23% growth in revenues to P11.4 billion. This was attributed to higher reservation sales amounting to P24.8 billion.

SM Prime also noted it has an inventory of 16,000 units -equivalent to 12 months of sales, making it sufficient to temper the expected construction delays in new projects due to the lockdown measures currently in place.

Other business segments added P2.2 billion in revenues, with operating income sliding 9% to P1.1 billion. This accounts for SM Prime’s office leasing segment, which continue to operate under quarantine as its tenants are mostly business process outsourcing companies. SM also operates hotels, including Taal Vista Hotel which was closed in late January due to the eruption of Taal Volcano.

“The company’s first quarter results reflect the business disruption impact of the quarantine measures implemented last March 16, which affected primarily our leasing businesses,” SM Prime President Jeffrey C. Lim said in the statement.

“The residential segment has still shown strong growth in the first three months, abating the effect of revenue losses in the malls segment. The balance between our recurring and developmental income streams sustains our healthy financial position during this pandemic,” he added.

Despite the economic decline brought by the pandemic, SM Prime said it is keeping its allocation for capital expenditures this year at P80 billion, which will focus on projects with sustainable returns in the long term.

“We believe that in crisis like this, flight to quality will be the driver for consumers and buyers, and SM has the solution and right product,” SM Prime Chairman Henry T. Sy, Jr. said.

Shares in SM Prime at the stock exchange shed P1.60 or 5.23% to P29 apiece on Friday.

Earnings of Lucio Tan-led conglomerate surge in Q1

By Denise A. Valdez, Reporter

LT Group, Inc. reported a 41% surge in profits in the first quarter, lifted by growth in its tobacco and property segments.

The listed conglomerate of tycoon Lucio C. Tan posted a attributable net income of P6.21 billion in the three-month period, up from P4.42 billion during the same period last year. Total revenues climbed 15% to P25.22 billion.

By business segment, the tobacco arm accounted for 80% of LTG’s earnings at P4.99 billion. Banking unit Philippine National Bank (PNB) contributed P761 million or 12%, while Tanduay Distillers, Inc. (TDI) accounted for P199 million or 3%. Property segment Eton Properties Philippines, Inc. added P168 million or 3%; and beverage arm Asia Brewery, Inc. (ABI) pitched in P74 million or 1%.

The remaining 1% is from LT Group’s 30.9% stake in Victorias Milling Co., Inc., which contributed P91 million to the company’s total attributable income.

The tobacco firm’s earnings surged 76% to P5 billion, owing to the higher share of premium Marlboro and an increase in prices since late August 2019. Volume dropped 9% in the three months, which LT Group warned may keep plummeting due to the government’s higher excise tax on tobacco.

“(LT Group) is not against tax increases, but believes that the hikes should be moderate. Continual price increases to pass on higher excise taxes may result in further volume drops,” it said.

PNB generated a net income of P1.37 billion during the period, 30% lower from the first quarter of 2019. Provisions for credit losses expanded to P3.36 billion from P346 million last year as it anticipated an economic decline due to the on-going coronavirus pandemic.

Tanduay’s net income fell 15% to P199 million, as higher alcohol costs resulted in lower margins for the company. A 4% drop in volume was offset by the price increase per case in January, which resulted in a 9% increase in revenues from the liquor segment. However, revenues from the bioethanol segment fell 8% due to lower volumes and selling prices.

Property arm Eton posted a 13% profit increase to P169 million, which it traced to an increase in rental income and improvement in gross profit margins for real estate sales. The company currently has 181,000 square meters of office space for lease and 43,000 square meters of retail space.

ABI, which produces products such as Cobra energy drink, Vitamilk soymilk and Absolute and Summit bottled water, saw a 10% decline in net income to P74 million. It said some equitized loss in a joint venture dragged its bottomline as revenues were flat during the period.

As the Philippines continues to face the coronavirus pandemic, LT Group said it is confident in the strength of its balance sheet, as its debt-to-equity ratio was at 3.86:1 with the bank and at 0.16:1 without the bank.

Shares in LT Group at the stock exchange ended flat on Friday’s trading at P7.18 apiece.

ABS-CBN says shutdown to ‘significantly impact’ revenues

ABS-CBN Corp. on Friday said the shutdown of its free-to-air television and radio operations “will significantly impact” the company’s media, networks, and studio Entertainment (MNSE) operations which generate billions of pesos in annual revenues.

The Lopez-led media giant told the stock exchange that revenues from MNSE operations stood at P23.3 billion in the period ended September 2019. Of the total, P15.9 billion or around 68% came from free-to-air advertising.

ABS-CBN said on a consolidated basis, free-to-air advertising accounted for around 50% of the company’s consolidated revenue for the first nine months of 2019.

“The actual impact on MNSE operations is difficult to estimate at this point since it will depend, among other things, on the duration of the time its television and radio stations are off-air, and its ability to generate alternative sources of revenues to make up for the shortfall,” ABS-CBN said.

“Even as the impact of the COVID-19 pandemic on the Philippine and global economy is yet to be fully realized, the order will put additional financial burden on the Company,” it added.

ABS-CBN shut down its free-to-air television and radio stations last May 5, after the National Telecommunications Commission issued a cease-and-desist order against the company after its franchise expired on May 4.

ABS-CBN said it continues to produce and distribute content via active channels, including The Filipino Channel (TFC) and ABS CBN News Channel (ANC), which were not affected by the NTC’s order.

“The Company is exploring alternative means to reach its audience and substitute sources of revenues, such as but not limited to, expanding its digital platforms and developing new products,” it said.

It likewise maintains the operations of its cable, satellite, and broadband business, digital and interactive media unit, as well as consumer products and experiences segment.

ABS-CBN said it will continue implementing cost control measures, reducing general administrative expenses or overhead, and rationalizing capital expenditures.

It is currently crafting measures to protect the welfare and interest of its employees who are affected by the network’s shutdown.

The company said it will pay all its bank debts on time and committed to “honor all existing obligations for goods delivered and services rendered by its third party suppliers.”

As of end-September 2019, ABS-CBN sad its long-term debts amounted to P21.34 billion.

Last May 13, the House’s Committee of the Whole approved on second reading House Bill No. 6743 which grants the network a franchise until October 31, 2020.

Meanwhile, in Senate, two bills on its franchise are still pending. One bill seeks to grant the company a 25-year franchise, while the other will provide a provisional franchise that will allow its operation to continue until June 30, 2022.

“The Company is confident that it has not committed any violation of the terms of its franchise, permits, and licenses or any applicable law or regulations as to merit the non-renewal of its franchise or suspension of its broadcast operations as a consequence,” it told the stock exchange. — A.J. Ang

ATI’s Q1 earnings slump as container volumes fall

Asian Terminals, Inc. (ATI)
Courtesy of Asian Terminals, Inc.

PORT OPERATOR Asian Terminals, Inc. (ATI) halved its profits in the first quarter as its ports saw lower container volumes amid the coronavirus disease 2019 (COVID-19) pandemic.

In a regulatory filing Friday, the listed firm said its attributable net income slumped 68% to P472.16 million in the January to March period, as revenues dropped 29% to P2.58 billion.

“Revenues from South Harbor (SH) international containerized cargo operations and Batangas Container Terminal (BCT) decreased from last year by 29.3% and 39.7%, respectively, on account of lower container volumes resulting from the negative impact of COVID-19. Container volumes at SH and BCT declined by 20.8% and 18.8%, respectively,” it said.

ATI said costs and expenses climbed 3% to P1.36 billion, partly due to labor costs related to the COVID-19 crisis. Expenses for security, health, environment and safety rose 8% to P56.3 million as the company bought supplies to combat the spread of the coronavirus.

Other expenses grew 5% to P60.7 million, accounting for donations and community investment programs that ATI rolled out in relation to the pandemic.

Amid the COVID-19 crisis, ATI said its ports will remain operational 24/7 to ensure the “unhampered flow of food, medicines, medical supplies and other vital commodities in the supply chain.”

DMW profits fall 12% on last year’s one-time gain

EARNINGS of D.M. Wenceslao and Associates, Inc. (DMW) fell 12% year-on-year in the first quarter after the absence of last year’s one-time gain.

In a statement Friday, the property and construction firm said its attributable net income stood to P445.4 million in the January-to-March period, lower than the P507.1 million it recorded the same period last year.

Excluding the P300-million other income it saw in 2019, DMW said its net income would have grown 71% this year.

DMW’s revenues surged 72% to P1.02 billion, driven by record-high growth in its leasing and residential segments. Revenues from the leasing segment climbed 4% to P512.7 million, while revenues in the residential segment soared 398% to P498.1 million.

The growth in the leasing segment was triggered by sustained occupancy and higher rates in new leases. The rise in residential revenues was supported by higher project completions and additional accounts recognized.

“We continue to show good progress against our strategic priorities of enhancing our earnings base and profitability by developing a portfolio of high-quality real estate projects, resulting in our highest quarterly revenues without land sale,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao said in a statement.

“While we expect the risk of delays to our project construction schedule and potential weaker near-term demand due to COVID-19 (coronavirus pandemic), we believe that the overriding strategy we laid out at the time of our IPO (initial public offering) remains relevant and will enable us to weather and respond to market uncertainty as well as to pursue new opportunities that will emerge as a result of the crisis,” he added.

The company also announced its board of directors has approved undertaking a P1-billion share buyback program to enhance and improve shareholder value. It noted this will affect DMW’s minimum public ownership, but committed to bring it back up to the required percentage within 12 months.

“The share buyback program will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the Philippine Stock Exchange… The share buyback program will not affect any of the company’s prospective and existing projects and investments,” it said.

Shares in DMW at the stock exchange inched up six centavos or 0.90% to P6.70 each on Friday. — Denise A. Valdez

NLEX, ALI unit start rapid COVID-19 testing for employees

NLEX Corp. and Ayala Property Management Corp. (APMC) have started conducting rapid testing for coronavirus disease 2019 (COVID-19) for employees as Metro Manila shifts to a modified enhanced community quarantine (MECQ) on Saturday.

NLEX Corp., a unit of Metro Pacific Tollways Corporation (MPTC), said it began rapid COVID-19 testing for all employees, particularly its frontline staff, today (May 15).

“We will see to it that only those who are cleared by the testing will face our customers,” NLEX Corporation President and General Manager J. Luigi L. Bautista was quoted as saying in a statement.

Since the enhanced community quarantine started in mid-March, the company enforced strict health and safety protocols, including for toll booths at North Luzon Expressway and Subic-Clark-Tarlac Expressway.

At its toll booths and customer service centers, the company installed transparent barriers or protective curtains, and provided alcohol and hand sanitizers for customers.

Moreover, NLEX Corp. said it is considering long-term changes for its facilities, including room renovations, improvement of its ventilation system, and replacement of manual faucets to hands-free taps.

In a separate statement, AMPC said it performed mass testing for COVID-19 last May 7 to 8 for security guards, maintenance personnel, and other employees delivering services to Ayala Land, Inc. properties in Makati City.

AMPC said all 380 employees who underwent testing were negative for COVID-19.

The company is looking to procure more rapid antibody-based test kits for the rest of its workers who were on-duty during the lockdown.

“Testing for APMC frontliners is part of ALI’s initial efforts to start conducting tests for frontliners across its subsidiaries, including its malls and other commercial properties. This would prepare the company for the resumption of business operations once the ECQ is lifted, or as soon as the National Government permits,” the company said. — Adam J. Ang

SMC delivers donated testing booths, kits to LGUs

SAN MIGUEL Corporation (SMC) said it has started donating COVID-19 testing booths to the cities of Mandaluyong, Pasig, and Manila, as part of its commitment to boost the testing capacities of all Metro Manila local government units (LGUs).

In a statement, the conglomerate said it turned over 24 testing booths to Mandaluyong, Pasig and Manila.

More testing booths will be delivered to other LGUs next week.

SMC is also donating 34,000 or P3 million worth of rapid tests using the technology called PCR (polymerase chain reaction) to the LGUs.

“With these donations, we hope to help boost testing particularly in our less-fortunate communities where many underprivileged families are extra vulnerable, due to their living conditions,” SMC President Ramon S. Ang said.

Mr. Ang said testing should be free for all poor families. He said the price of testing should be regulated to make it more affordable for Filipinos and small companies that need to test employees before they can go back to work.

Phoenix unit to start selling US-made gensets

A UNIT of Phoenix Petroleum Philippines, Inc. will start selling gas-powered generator set (genset) units, targeting companies in hospitality and manufacturing sectors.

In a statement, Phoenix Pilipinas Gas and Power, Inc. (Phoenix Gas) said it will bring the first batch of the gas-powered gensets to the country in June.

The gensets are manufactured by US-based Mesa Natural Gas Solutions, LLC., and will be distributed by Phoenix Gas in the Philippines.

The three gensets each have a 350-kilowatt maximum capacity. It will use liquified natural gas (LPG) to be supplied by Phoenix LPG Philippines, Inc.

The company said the gensets are designed to enable remote performance monitoring on a real-time basis, sporting also on-site troubleshooting features.

“We are happy to share that amid the ongoing crisis, Phoenix Gas and Mesa have finished developing our gas-powered gensets, which are now en route to the Philippines for utilization. We are optimistic about the future of these types of gensets in the country, and we hope that this will signal the revolution towards a cleaner and more reliable power source,” Phoenix Gas President Henry Albert Fadullon said in the statement. — A.J. Ang

IC outlines regulatory relief for insurers

THE Insurance Commission (IC) eased rules on insurance firms’ quarterly compliance with the minimum net worth requirement and also announced other relief measures to help companies stay afloat amid the coronavirus crisis.

The IC issued Circular Letter No. 2020-60 on Friday relieving insurance companies from quarterly compliance with the P900 million minimum net worth requirement.

However, the IC said only those already compliant with the requirement as of end-December are immediately to avail of this regulatory relief measure.

Meanwhile, those that have failed to comply before the enhanced community quarantine was declared last March 17 can only avail of the relief once they “put up additional funds to cover the net worth deficiency.”

Under Republic Act No. 10607 or the Insurance Code, insurers must have a net worth of at least P900 million by Dec. 31, 2019 and P1.3 billion by Dec. 31, 2022. New players must have at least P1 billion in paid-up capital.

While insurers still need to comply with the minimum risk-based capital (RBC) ratio, the IC also relaxed the levels of regulator intervention based on the company’s level of compliance.

For instance, companies with RBC ratio of over 100% will no longer require regulatory action but if the ratio falls below 25% level, IC can still, and is required to, take control of the company.

IC said the submission of 2020 RBC2 reports will be on Aug. 31 for the period ending June 30, Nov. 30 for the period ending September and on April 30, 2021 for the period ending December 2020.

The insurance regulator said the economic fallout from the coronavirus disease 2019 (COVID-19) pandemic is expected to impact policyholders, counter-parties and agents.

“Insurance companies may be affected in a variety of ways such as exposure to declining revenues, unprecedented volatility in the stock market, interest rate changes, increased claims, credit risks, supply chain and service disruptions, and the overall decrease in the value of assets and investments,” the circular, issued by IC Commissioner Dennis B. Funa, read.

“These events could depress the solvency position of insurance companies. This Commission values the importance of insurance companies to stay in business as they provide a primary source of financial protection to the society and economy,” it added.

In a separate directive, the IC also extended the period agents sell online or via information and communication technology (ICT) until the end of the year from the initial end-June rule to give both life and non-life insurance companies more selling options amid the ongoing COVID-19 pandemic.

The insurance industry’s premiums rose 2.76% to P224.97 billion at the end of September 2019.

The life insurance sector accounted for P172.05 billion of net premiums written in the period, while the non-life sector generated P44.02 billion. — B.M. Laforga

Inflows boost PHL net external liability position

CONTINUED investment inflows pushed the country’s net external liability position wider in the fourth quarter of 2019, backed by optimism among foreign investors.

The country’s international investment position (IIP) stretched to a net external liability of $34.8 billion as of end-December 2019 from the $33.5 billion logged as of end-September, the Bangko Sentral ng Pilipinas (BSP) said in a statement.

On the other hand, net external liability dropped 28.3% compared to the $48.6 recorded as of end-2018.

The IIP takes stock of a country’s financial claims and liabilities.

The BSP said the 2.2% rise in total external financial liabilities to $231.9 billion — which surpassed the 1.9% growth in total external financial assets — boosted the net external liability position of the country.

“The increase in the country’s net external liability position reflected continued inflows on the back of investor confidence in the Philippine economy,” the BSP said.

The country’s total external financial liabilities rose by $5.1 billion as of end-December 2019 on a quarterly basis. This was on the back of transaction inflows, particularly in the form of foreign direct investments (FDI) in equity capital and debt instruments, coupled with positive exchange rate and other valuation adjustments, according to the central bank.

Total foreign financial assets also inched up by $3.7 billion quarter-on-quarter backed by the accumulation of reserve assets, combined with the increase in the amount of residents’ direct investments abroad.

As of end-2019, only the BSP posted a net external asset position of $86.8 billion. Other sectors including the general government and deposit-taking corporations recorded a net external liability position.

The BSP also continued to keep the largest stock of the financial assets of the Philippines at $88.1 billion or 44.7% of the total as of end-2019.

Meanwhile, other sectors held 38.5% or $75.8 billion of the country’s external financial assets. Banks held the remaining 16.8% or $33.1 billion.

According to the central bank, 44.6% of the foreign assets were reserves held by the BSP at $87.8 billion.

“Direct investments accounted for about a third of the country’s external financial assets in the form of debt instruments amounting to $32.7 billion (16.6%) and equity capital and investment fund shares totalling US$25.2 billion (12.8%),” the BSP said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the ongoing coronavirus pandemic may affect the country’s financial claims and liabilities.

“In view of COVID-19 (coronavirus disease 2019) lockdowns that led to economic contractions and risk of recession globally, foreign investments into the country could potentially slowdown amid reduction in capital expenditures by some of the biggest global companies caused by reduced economic activities,” Mr. Ricafort said in an email. — L.W.T. Noble