JazzyPay is a web and mobile app that allows businesses to accept cashless payments. There are no setup or subscription fees, neither is there a monthly sales volume quota. Partner merchants are charged only for every successful payment transaction.
Payments are received within 2–3 days, instead of the usual 14, and are accepted through 27 payment methods, including credit and debit cards, online banking, digital wallets, and over-the-counter cash deposits.
Since representing the Philippine startup community at InnoVEX 2019 in Taipei City, Taiwan, JazzyPay has secured a US $500,000 seed financing round from Cocoon Capital, a venture capital from Singapore that focuses on Southeast Asian early-stage technology companies.
JazzyPay 2.0, its latest iteration, has a feature that allows merchants to send an invoice with a secure text or e-mail payment link. It also has a QR scanning option.
The platform recently got an Operator of Payment System (OPS) license from the Bangko Sentral ng Pilipinas (BSP). It also earned the highest Payment Card Industry Data Security Standard (PCI DSS) certification level for security by the SISA Information Security.
A Mastercard study in April showed that 74% of people worldwide and 75% in the Asia Pacific said they would keep using contactless after the pandemic is over. The shift towards a “frictionless” economy is partly from the fear of coming in contact with the virus on the surface of bills or through human interactions.
While the needs of the unbanked are met by the platform via the over-the-counter cash deposit option, JazzyPay COO and co-founder Kathleen Acosta hopes that, by collaborating closely with merchants, it can play a role in educating the public about a cashless future.
“Coupled with the government’s push, we’re excited to see society accelerate its adoption of cashless payments in the near future,” she said. “In the long-term, solving this problem will require a good synergy among [stakeholders]. We also need to ensure that the infrastructure is ready to support this advancement, else there will still be hindrances before it can reach those at the bottom of the pyramid.” — Patricia B. Mirasol
Nauts and Vectors Company Inc., NAVCO, the official distributor of Garmin smart wearables in the Philippines, announces a partnership with WellteQ, a Singapore-headquartered digital wellbeing platform that enables access to the latest innovative healthcare.
Highlights
Through Garmin’s official distributor in the Philippines, Nauts and Vectors Company Inc, (NAVCO), the partnership enables Garmin users a seamless integration into WellteQ’s wellbeing platform to consistently monitor and track health data for comprehensive wellbeing analysis.
This partnership allows companies to equip their employees and their spouses with the necessary tools to keep tabs on their own health both at work and at home to create healthier and safer environments during the COVID-19 pandemic.
Both NAVCO and WellteQ recognize that it is critical to proactively track health data as lead indicators of health and wellbeing status, and can be vital in the fight against COVID-19.
Integrated Solution Supports Employees Working From Home
Garmin Philippines’ mission is to help Filipinos enhance their overall health and wellbeing in an attempt to build resistance against the current virus outbreak. The data a Garmin device collects and the mapping features it provides are invaluable in monitoring general health and wellbeing as well as being able to track changes in mental and physical wellbeing that might not be easily perceptible to a non-medical professional.
With Garmin’s new integrated FirstBeat technology, it’s been discovered that an increase of eight beats per minute (BPM) in resting heart rate equates to an increase of one-degree centigrade in temperature. This data is monitored through the WellteQ digital ecosystem for a cost-effective, accessible, and efficient COVID-19 defense that could help minimize the spread of the virus.
By integrating Garmin’s smart wearables and fitness trackers capabilities and features into WellteQ’s digital wellness platform, WellteQ extends the use case of digital wellbeing into the continuity of care. Its suite of digital health assessment and wellbeing tools now extend past objective health risk assessment and preventative coaching into measurable action in a user’s health and wellbeing profile.
Combined Technologies Support Overall Resistance To Illness
While a user works towards their health and fitness goals, measurable evidence of their progress is tracked in the WellteQ platform for consistency, aiding sustained behavioural change. Starting with smaller goals and with the aid of Intelli-nudges, a personalized in-app notification to help keep the user on track, momentum is built-up until the user feels more confident to tackle larger health objectives.
Strong general wellness has been proven as the greatest resistance against developing non-communicable diseases, improving mental health issues, and reducing the risk of contracting viruses. With the precision accuracy of Garmin’s health data, metrics such a sleep cycles, blood oxygen saturation (SpO2), and stress levels, measured through heart rate variability (HRV), small changes in physiological responses are tracked and benchmarked against the user’s own history, as well as WellteQ’s global population database.
How Businesses Can Use This New Solution
For employers, this collaboration offers an end-to-end solution for their workforce that spans prevention programs and wellness resistance improvement, to disease management and home-based health monitoring. The combined solution provides employees with the right tools to stay active, strengthen their immune system, and maintain their fitness level during periods of lockdown in the ongoing health crisis:
More accurate employee profiling allowing employees to get ahead of the risk before the situation becomes more serious and costly.
Safe and secure digital environment for employees ensures user anonymity as only aggregated information is reported back to the employer.
A dedicated solution that improves the lives of the workforce irrespective of location.
Understanding the increased time spent at home during various stages of lockdown, the enterprise solution is extended to both employees and their spouses in the Philippines region to create a supportive environment that can be enjoyed in the family home.
Neil Anthony Tan, Managing Director of NAVCO (exclusive distributor of Garmin in the Philippines), said:
“We’re excited about NAVCO’s partnership with WellteQ, combining workplace physical data insights with Garmin’s wellbeing hardware, science, and technology that aims to provide a holistic wellbeing approach for employees and their workplaces.
In this collaboration with WellteQ, we’ll be able to provide better data-driven employee assistance programs that go beyond the workplace. It’s now possible to provide them with tools which are dedicated to understanding how they can make the employees’ lives better.
By using advanced, functionally-integrated technology, we create landmark products that set new standards for user-centric health and wellbeing experiences. This will not only help employees but increase the return of investment for businesses. We make a really simple and transparent process for companies to see their return on investing in wellbeing. I am very excited to see how we can transform workplace health together.”
Scott Montgomery, CEO of WellteQ, said:
“Now is a unique time in our history, presenting business owners with both challenges and opportunities to manage and improve workplace environments. The current pandemic has fast-forwarded the use of the latest digital tools as the world comes to terms with extended periods of social distancing, various stages of lockdowns, and the new norm of working from home.
We’re thrilled to be deepening our relationship with Garmin as we now expand into the Philippines, a region that’s been on our radar for quite some time. We feel we have a huge advantage of having NAVCO as our on-the-ground partner in offering a new standard in health and wellbeing technology. By combining our client relationships and years of experience, we’re positive that we’ve developed a solution for the market, by the market.
Understanding the importance of family in the Philippines, we’ve extended our solution to include spouses, a unique offering that we envision will not only encourage employees engagement but will aid in the creation of health support networks outside of the workplace. We can’t wait to get started.”
NEW YORK — As our lives become more virtual with technology, how do gadgets define our identity at work, home, and social circles at this unique moment in history?
Mary L. Gray, an anthropologist and recent recipient of a 2020 MacArthur “genius grant,” looks at the way technology affects labor, identity, and human rights. Ms. Gray, 51, who is based in Somerville, Massachusetts, discusses how digital culture can improve our professional as well as personal lives.
Below are edited excerpts.
Q: Nearly six in 10 workers say that working from home means their day is less defined, according to a recent study. What are your thoughts on how technology is keeping us connected to work more than we probably want or need it to?
A: Remote work is not new to anyone who does contingent work. Contract workers, who have no healthcare benefits and can be fired at any time, work as much as they need to make ends meet, and they have always done that work around family demands.
What is new is the experience of the salaried worker now working from home, who is figuring out how to juggle eldercare, childcare, household chores, and everything else. That’s the thing about this pandemic—it drove so many of us to the realities that gig economy workers live every day.
Q: How can we make technology matter, but not overshadow our life?
A: By understanding that technology is not the thing that matters. What matters is how can we apply technology to problems where we see inequity.
Take broadband: It’s expensive to access data plans in rural parts of US. Rural broadband won’t fix rural poverty. But it’s a lever. The internet is not a “nice-to-have.” It’s essential to economic productivity.
Q: Are you worried that we are all spending too much time online these days?
A: No. What were our options before Facebook? The internet provides a place to connect, explore and be seen. We all crave social connection, especially right now.
Q: What is your advice for parents who worry about too much “screen time?”
A: We have a popular narrative that says video games are bad, and parents are bad if they let kids sit in front of screens all day.
The more pressing question is what are we trying to achieve when we are on our screens? The most valuable skill is teaching kids to evaluate and critically analyze what is in front of them. They need to learn how to make sense of the world, to think through a problem and how to identify sources.
If there is one thing our democracy needs, it is fact-checking.
Through screens, young people are learning how to collaborate, and even how to work with a group they’ve never met before.
It’s not always obvious to parents, but if kids are developing skills to learn how to learn, that is a good thing.
Q: What form of technology is most indispensable to you?
A: I feel like I could live without all of it. I’m quite conscious of the connections I have with people—that’s the most important structure we can put in our lives.
If pushed to pick one form of technology, I’d say I rely on the phone the most to stay in touch with family and friends. But mostly it’s just talking, not FaceTime.
My dad is 91. He doesn’t have internet in his house. And he has a flip phone. — Lauren Young/Reuters
How Lazada has grown into the eCommerce giant it is today and how 11.11 has become synonymous with being the biggest online shopping festival day
Photo courtesy of Mighty Baby
Conceived in 2009 by Alibaba’s platform for premium brands Tmall, the date November 11 is now synonymous with the biggest shopping celebration in the region. Originally an obscure holiday to celebrate singles, today many companies come to use this opportunity to promote the best deals and lowest prices to consumers on almost all categories available.
Lazada was the first to bring this retail event to Southeast Asia, and this year will be the eighth edition. Filipino consumers eagerly wait in anticipation for not just exclusive deals, but a range of entertaining activities on the platform such as the Super Show concert, LazLive content like interactive game Guess It!, and voucher deals through in-app games.
How did 11.11 evolve from its beginnings on Lazada to the super shopping festival it is today?
Humble beginnings
Launched in 2012, Lazada used to operate as an online retailer, wherein items were stocked and then sold directly to customers online. Lazada took care of the logistics, making sure purchased items were conveniently delivered to customers’ doorsteps. While eCommerce is prevalent now, it wasn’t the same eight years ago. Back then Filipinos preferred to do all their shopping in traditional brick and mortar stores.
MemoXpress, one of the pioneer brands that joined Lazada in 2014, sold mobile phones and accessories. They are a known brand in retail malls, but it was a challenge to build and grow their customers on eCommerce. Filipinos were resistant to the idea of buying products online, especially big-ticket items like mobile gadgets. The team knew they had to build a strong foundation for their online business in order to gain the trust of their customers.
Shop your favorite mobile phones and accessories at MemoXpress’ online shop in Lazada.
“Buyers were quite wary to purchase online back then, always making sure that the seller was authorized and the products were legit. It was crucial for us to really build our team and adapt the mindset of understanding our customers’ needs and how we can better serve them through an online platform,” says Wilton Yu, MemoXpress Division Head for eCommerce.
Mighty Baby, another pioneer on the platform, has been with Lazada for six years. Selling mom and baby merchandise, the brand received a similar reception from buyers wary of purchasing products online.
Photo courtesy of Mighty Baby
“When we joined Lazada, many people were unfamiliar with the concept of shopping online. People were skeptical about buying from a platform, asking if this is a legit website to purchase from. There was a curiosity to buy online but they were not sure as if it was a scam,” said Meryll Dy, Mighty Baby owner.
Photo courtesy of Mighty Baby
The brands’ online business evolved along with the eCommerce platform, maintaining faith even in the face of rocky beginnings as Lazada worked to grow its presence and improve its back-end capabilities.
“When we were first starting out, the back-end support on our Seller Center was rudimentary and simple. We had to do everything manually like churning out reports and figure out the transactions since our items had higher price values. Even our training modules were all just in PDF,” says Wilton.
Using the tools and limited knowledge they had, the brands embarked on their first 11.11 journey and got a taste of what was to be their biggest sale day of the year.
“We really didn’t expect anything when we first participated, and we were surprised to find out that it was a big shopping event. We were also available on other platforms and offline stores then, but we really saw a healthy spike in our sales on Lazada,” says Meryll.
Platform evolution
As the years passed, Lazada got bigger and bigger. More brands and sellers joined, and the back-end technology available for sellers became more sophisticated and helped to improve their business operations.
“Sellers now have access to their sales reports, store audience and page views, all the different metrics to see if the store is doing well. We have the option to dress up our store and make it more appealing for customers. Likewise, we can also showcase our products in more creative and appealing formats like videos and livestream. We see that these are effective in driving more consumers to click and shop on our store,” says Meryll.
Not only has the Seller Center’s tools evolved with better technology, resources like training modules used to educate sellers on the ropes of eCommerce have improved as well. From the simple PDF modules, it has blown to a full-fledged course training program via Lazada University. New innovations have also been introduced to give brands and sellers better visibility and traffic on the platform, such as the newly launched Lazada Sponsored Solutions.
During the recent 9.9 Big Brands sale, Johnson & Johnson utilized the solutions Sponsored Affiliate and Sponsored Search, with the former contributing 23% of total sales. Likewise, electronics brand Coocaa saw it boost their daily sales, contributing to 10% of their total sales since activating the use of Lazada Sponsored Solutions.
“Lazada’s Sponsored Solutions opened up new opportunities for our Johnson & Johnson LazMall store, making our brands stand out more than ever within the platform. The full funnel solutions allowed us to strategize where our big bets will go best in alignment with our business objectives,” says Johnson & Johnson Digital Brand Manager, Charmaine Obedencio-Gumban.
Photo courtesy of Mighty Baby
Apart from the back-end tools, Lazada’s overall look and feel has improved since its beginnings, especially with the latest refresh of LazMall unveiled last September. The current app provides an easy and seamless shopping experience from start to finish, with added features available such as livestreaming and games, digital payment capabilities, as well as access to everyday essentials like groceries, medicine and even fresh produce.
MemoXpress noted that the launch of LazMall helped increase their visibility as a trusted seller, differentiating their brand from the thousands of other sellers on Lazada.
“Searching for a product on the platform wasn’t very straight forward in the beginning; it was a whole jumble of results given every time customers tried to search for products. When Lazada established LazMall, the categories were better sorted and brands offering quality products gained better visibility on the platform,” says Wilton.
Even the businesses who have started out small in Lazada’s early stages have also grown phenomenally on the platform.
Unisilver Time also started out on Lazada in 2014, being conservative with their scale as they were just starting to dip their toes on eCommerce.
Get the watches you desire from Unisilver Time’s over a thousand products available at Lazada.
“When we were starting out, we only listed around less than 500 products on our Lazada store. At present, we have over a thousand products for our customers, really giving them the whole variety of our product offerings,” says Maricris Alovera, Unisilver Time Operations Manager.
Lazada and 11.11 at present
Now that 11.11 has become a mainstay on shoppers’ calendars, sellers make a lot of preparation for their biggest sale day.
“At the start we were not so focused on our eCommerce presence and didn’t have enough manpower. But we saw how much our store has grown as the online space continues to evolve. During our last 11.11 in 2019, we had over 500 visitors and more than3,000 page views within the first 30 minutes. We know this year will be even bigger, and we’re continually increasing our assortment to provide our customers more choices and deals. We really want to build Mighty Baby as a go-to shop for mom and baby products,” says Meryll.
With eCommerce seeing explosive growth, more brands and sellers on the platform are also seeing their businesses flourish and are quickly adapting their strategies to better cater to the growing online market.
“Before we really invested in our physical presence, opening a lot of physical stores. With the evolution of technology and eCommerce, it has also evolved consumer preferences and led us to become more flexible with our business. 11.11 now really has a big impact for our business; people expect great deals on quality products that we have on offer. On our end, we really find ways to provide for their needs and make their eCommerce experience seamless from adding to cart to receiving their products in the best condition,” says Wilton.
“The road to becoming the leading eCommerce platform in the Philippines has not been easy and we have overcome many obstacles in our journey to build Lazada to what it is today. Seeing the growth of our brands and sellers through our 11.11 mega campaign together with Lazada is incredibly rewarding to us. I’m proud that 11.11 and our other mega campaigns throughout the year has helped businesses boost their sales and providing them with a wider audience reach for their growing product assortment. This year’s 11.11 would be bigger and better, and we hope that more brands celebrate with us as we bring more non-stop happiness to consumers and celebrate more campaigns to come,” says Ray Alimurung, Lazada Philippines Chief Executive Officer.
President Rodrigo R. Duterte said on Tuesday he would favor a government-to-government deal for the purchase of coronavirus vaccines to prevent the risk of corruption.
“Let me tell everybody that we will not beg, we will pay,” Mr. Duterte said in a weekly televised address. “To the Chinese government, you need not look for partners, we can make it government-to-government.”
The Philippines has the second-highest number of COVID-19 infections and deaths in Southeast Asia behind Indonesia. — Reuters
THE country’s balance of payments (BoP) position remained at a surplus for the eighth consecutive month in September, supported by the central bank’s foreign exchange operation and profits from investments abroad.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said the BoP surplus stood at $2.104 billion in September, ballooning from the $38-million surplus in the same month in 2019. This was also 220% higher than the $657-million surfeit posted in August, and the highest since May’s $2.431 billion.
“The BoP surplus in September 2020 reflected mainly the inflows from the BSP’s foreign exchange operations and income from its investments abroad, and the National Government’s (NG) foreign currency deposits with the BSP. These inflows were partly offset, however, by the NG’s payments of its foreign currency debt obligations,” the central bank said.
The BoP portrays the country’s economic transactions with the rest of the world within a given period.
In the first nine months of 2020, the BoP posted a surplus of $6.88 billion, 24% higher than the $5.57 billion during the same period a year ago.
“Based on preliminary data, the current BoP surplus was supported mainly by higher net foreign borrowings by the NG and lower merchandise trade deficit along with sustained net inflows from foreign direct investments, personal remittances, and trade in services,” the BSP said.
Foreign borrowings have surged 85% to P509.69 billion in August year to date, data from the Bureau of the Treasury showed.
Meanwhile, the trade deficit slimmed to $14.61 billion as of August year to date from the $27.071-billion deficit in the comparable period of 2019.
Latest data from the BSP showed foreign direct investments (FDI) grew 35% year on year to $797 million in July, marking its third straight month of growth and its highest since the $1.153 billion logged in December last year. However, FDI inflows are still down by 11% in the first seven months of the year to $3.795 billion.
Earlier this month, the BSP upwardly revised its BoP projections to a surplus of $8.1 billion this year, from the $600-million surfeit it penciled in last May. The latest projection is equivalent to 0.6% of the gross domestic product (GDP).
The September BoP position also reflects a final gross international level of $100.44 billion as of end-September, inching up by 1.5% from the $98.95-billion level the prior month.
“This is equivalent to 10 months’ worth of imports of goods and payments of services and primary income,” the BSP said.
“It is also about nine times the country’s short-term external debt based on original maturity and 5.4 times based on residual maturity,” it added.
A wider surplus is likely in the last few months of 2020, supported by the seasonal increase in cash remittances from overseas Filipino workers, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.
Cash remittances slipped 2.6% to $19.285 billion in the first eight months of 2020. The BSP expects cash remittances to drop by 2% this year due to the impact of the pandemic.
“The BoP surplus could also be sustained amid continued narrower trade deficit recovery in imports, and additional dollar borrowings by the National Government to partly finance various COVID-19 programs as well as more infrastructure projects,” Mr. Ricafort said.
The government expects to borrow $3 trillion this year from both domestic and foreign sources to boost its funding meant for the crisis response. —Luz Wendy T. Noble
SHARES in Converge ICT Solutions, Inc. declined on their first day of trading at the Philippine Stock Exchange (PSE), after completing a P29.1-billion (around $600-million) initial public offering (IPO) amid the coronavirus pandemic.
The fiber internet provider’s shares, which were priced at P16.80 each during the IPO, slumped by 9.40% to close at P15.22 apiece on Monday. Converge shares opened at P16.78 each, and fell by as much as 11.2% to P14.92 during the session.
“Short-term traders cashed out of Converge shares as they speculated on the prospects of the company amid the pandemic,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
Converge on Monday announced it will spend P29 billion for capital expenditures (capex) in the next year and a half.
“We have planned to deploy about P29 billion or $600 million of capex over the next 18 months to roll out our network to tens and of thousands of communities across the Philippines,” Matthias Vukovich, chief financial adviser of Converge, said a virtual press briefing after its listing ceremony.
This would help the company meet its target of reaching about 55% of households nationwide by 2025, he added.
However, investors are wary of these targets given the hurdles posed by the ongoing coronavirus pandemic. Several parts of the Philippines, including the National Capital Region, have been under varying levels of quarantine for over seven months.
“Many are debating as to how fast the company can meet its growth targets given the effects of the lockdown,” Mr. Limlingan said.
Converge’s shares also continue to be perceived as over-valued by analysts, with Philstocks Financial, Inc. projecting a 2020 price-to-earnings ratio of 48.64x for the company.
“The sell-off can be attributed to Converge’s expensive valuation… Because of this, the stock was sought for a lower price at the secondary market,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks, said in a text message.
The overall weaker trading at the PSE also weighed on Converge shares, as investors started profit taking after last week’s 10% rally for the main index. The PSEi was flat on Monday, recording a 0.11% uptick to 6,491.19.
“Despite Converge’s strong fundamentals, its IPO price was never exceeded, mainly attributable to its lofty valuation and the current economic condition being a recession, with most investors at the sidelines. Also, the local market consolidated after the run-up (last week),” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
Converge’s offering marked the Philippines’ largest-ever IPO in peso terms, after generating P29.1 billion (about $600 million), including the over-allotment shares. In dollar terms, Robinsons Retail Holdings, Inc. was the country’s biggest IPO, raising P26.79 billion or around $627 million in 2013.
Converge is only the second company to go public this year, following grocer MerryMart Consumer Corp. in June.
“We celebrate our successful IPO today as a significant milestone for the company and as evidence of our strong operational and technological capabilities,” Dennis Anthony H. Uy, founder and CEO of Converge, said in a statement.
The company’s offering was “well oversubscribed,” booking more than P4.86 billion of domestic demand and P10.93 billion of cornerstone investment.
“We are fully committed to building the largest fiber broadband network in the Philippines and to providing affordable and reliable high-speed internet connectivity to millions of Filipinos nationwide,” Mr. Uy added.
Finance Secretary Carlos G. Dominguez III said he hopes the company will use its IPO proceeds to improve internet services in the country.
“We will count on your company to help us bridge the digital divide as we purposely move forward to a New Economy,” Mr. Dominguez said during Converge’s listing ceremony.
Converge posted a net income of P1.26 billion in the first six months of 2020, up 53% from the same period last year. Its revenues grew 65% to P6.49 billion on increased demand for internet services during the lockdown.
The company is backed by US-based private equity firm Warburg Pincus, which invested $225 million in equity funding last year.
DEPOSIT GROWTH is likely to slow in the remaining months of 2020 as Filipinos are likely to tap their savings for the upcoming holidays, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said.
“Our outlook on savings is that it will continue to grow. But, maybe, not at the rate it has grown in the past,” Ms. Fonacier said in a text message.
Total deposits rose 3% to P14.3 trillion as of end-July, BSP Governor Benjamin E. Diokno earlier said. This, as Filipinos chose to boost their savings amid heightened uncertainty due to the pandemic.
The rise in bank deposits can be attributed to the liquidity boost from the BSP as well as the recession, according to ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa.
The BSP’s policy measures have so far infused P1.9 trillion in liquidity to the financial system, equivalent to about 9.6% of the country’s gross domestic product, Mr. Diokno has said.
“With the pandemic forcing the economy into a deep recession, households have entered conservation mode and are putting off discretionary spending, luxury and leisure spending and select big-ticket investments given the uncertainty,” Mr. Mapa said in an e-mail.
The country fell into a recession as GDP shrank by a record 16.5% in the second quarter. Household spending, which accounts for about 70% of the GDP, also contracted by a record 15.5%.
As quarantine restrictions ease, Ms. Fonacier said spending is likely to pick up as the holiday season nears.
“It’s in the Filipino culture to always share during Christmas, hence, the spending pattern goes up at this time.OFWs (overseas Filipino workers) would normally send more money for Christmas,” she said.
“Also, employers would normally have something for their employees even in difficult times because it has been the tradition to always share during Christmas,” she added.
Mr. Mapa said the spending across the board tend to jump right after All Souls’ Day (Nov. 2) as people prepare for the holiday season, but this year could be a different story.
For UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion, effective virus containment is still the key to economic recovery.
“COVID-19 (coronavirus disease 2019) still persists and advance countries’ current experiences with virus resurgence post a huge threat to emerging economies especially to those who do not have a clear grip on the containment of the disease,” Mr. Asuncion said in a text message.
The Health department reported 1,607 new coronavirus infections, bringing the total to 371,630. This is the second-highest number of infections in Southeast Asia.
As unemployment remains high, many consumers may be restrained about holiday spending this year.
Unemployment rate in July stood at 10%, easing from the record 17.7% in April but still nearly double the 5.4% seen a year ago. The July figures represent 4.571 million jobless Filipinos, lower than 7.254 million in April, but higher than 2.437 million in the same month of 2019.
“This unfortunately will translate to a lower likelihood for a quick recovery as the economy enters a lower growth path with consumer and business confidence reeling from the pandemic,” Mr. Mapa said.
The government expects the economy to shrink by 4.5 to 6.6% this year, before growing by 6.5% to 7.5% in 2021.
DISTRIBUTION utility ‘confident’ of exceeding P21-billion core income target. — PHILSTAR/MICHAEL VARCAS
MANILA Electric Co. (Meralco) on Monday reported a core net income of P5.14 billion in the third quarter, down 16.3% from a year ago but milder than the fall it posted in the second quarter this year when its customer base was under a strict lockdown.
Total revenues between July and September reached P71.95 billion, lower by 5.5% compared with the same quarter last year.
The utility giant performance during the quarter brought its core net income in the three quarters to September to P15.73 billion, translating into a 15% year-on-year decline because of the slump in revenues and electricity sales.
Gross revenues fell by 11% to P214.21 billion during the nine-month period, dragged down by lower energy sales volume and generation charges, said Meralco Chief Financial Officer Betty C. Siy-Yap during its virtual quarterly briefing.
Revenues from power generation charges stood at P157.74 billion, while distribution revenues were at P50.7 billion.
The company posted a gloomier “reported” profit, which includes one-off items, plunging by 38.6% to P11.25 billion in the same period, attributed to its P2.7-billion share in its investment impairment in Singapore-based PacificLight Power Pte Ltd. in the first quarter.
Year-to-date, the publicly listed distribution utility sold 7% less power to 32,539 gigawatt-hours (GWh) than in the same period last year, according to Meralco Chief Commercial Officer Ferdinand O. Geluz.
It only saw an increase in sales from its residential customers, cornering 39% of total sales.
“We have seen the sales mix shift towards the residential for 2020 as customers continue to stay at home due to work-from-home policies, lockdown restrictions, and most recently, the online distance learning,” Mr. Geluz explained.
Business shutdowns during the strict community quarantines in the past months led to declines in the sales share of its commercial and industrial customers to 34% and 27%, respectively.
On a monthly basis, Meralco recorded positive growth in its total sales in September for the first time after the strict lockdown period. “Consolidated sales were at 4,007 GWh, which is 0.4% higher than the same month last year,” Mr. Geluz noted.
Moreover, its customer count went beyond 7 million last month, with residential customers accounting for 92% or 6.47 million.
The company is “confident” that it can exceed the P21-billion core profit target for this year, Meralco Chairman Manuel V. Pangilinan said in a separate statement.
Core profit grew by 2.1% in the first quarter to P5.72 billion before plunging by 27.7% in the second quarter to P4.86 billion.
“As 2020 comes to a close, we remain to be on the lookout for ways to limit the adverse impact of this pandemic, while remaining steadfast in commitment to keeping the lights on,” the official said.
“We firmly believe that there is opportunity in every crisis and, are hopeful that we will emerge stronger than ever,” he added.
On Monday, shares in Meralco increased by 1.02% to close at P298 each.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. 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. — Adam J. Ang
LIQUOR manufacturer Emperador, Inc. posted double-digit bottomline growth for the third quarter of 2020 due to improved sales from its overseas operations.
In a statement on Monday, the Andrew L. Tan-led company said its net income during the July-to-September period stood at P2.5 billion, up by a record 26% from the same period a year ago.
Year-to-date, its net income grew 11% to P5.9 billion, owing to the robust sales of its brandy and whisky products in international markets.
“The success of our international expansion boosted company earnings, bringing stability and growth at a time when the Philippines wrestles with the impact of the coronavirus,” Emperador President and CEO Winston S. Co said in the statement.
“Emperador’s global business saw double-digit growth as it adapted well to new consumption trends,” he added.
As the Philippine capital remains under quarantine since mid-March to contain the coronavirus outbreak, Emperador banked on its operations in the United States, Canada, Italy, Spain, United Kingdom and Greater China for its Fundador, Tres Cepas and Emperador brands.
It said the Fundador brand tripled its sales in Canada during the nine-month period due to the introduction of Fundador Light in Alberta this year. The brandy also recorded a 185% sales growth in the United Kingdom, a 23% sales growth in North America, a 15% sales growth in Italy and an 8% sales growth in Mexico.
In Spain, the company said products of Grupo Emperador España S.A. have maintained dominance with a 40% share in the brandy market.
“We are glad that the company was able to deliver solid performance in the first nine months of 2020 on the strength of its international business that we have developed in the past five years. The highest international growth comes from China, which is expected to more than double from last year, which will be driven by the premium single malt brands and brandy,” Emperador International CEO Glenn Manlapaz said in the statement.
“We are confident that this will pave the way for further growth in the future for Emperador,” he added.
Shares in Emperador at the stock exchange closed at P10.02 apiece on Monday, up two centavos or 0.20% from the last session. — Denise A. Valdez
THE GOVERNMENT made a full award of the Treasury bills (T-bills) it auctioned off on Monday as yields inched down as the market remains awash with cash and despite lingering uncertainties due to the coronavirus pandemic.
The Bureau of the Treasury (BTr) borrowed P20 billion as planned via the T-bills on Monday as the offer was more than four times oversubscribed, with bids amounting to P81.825 billion.
Broken down, the BTr awarded the programmed P5 billion in 91-day papers as tenders reached P23.44 billion. The three-month debt fetched an average rate of 1.079%, down by 0.7 basis point (bp) from the 1.086% seen at the previous auction.
The government borrowed another P5 billion as planned in 182-day T-bills as bids stood at P27.576 billion. The six-month papers were quoted at an average rate of 1.543%, declining by 5.4 bps from 1.597% at last week’s auction.
The Treasury also made a full P10-billion award of the 364-day debt yesterday as bids reached P30.809 billion. The one-year T-bills fetched an average rate of 1.791%, inching down by 0.2 bp from the 1.793% quoted during the previous offering.
To accommodate excess demand, the Treasury also opened its tap facility window yesterday to raise another P5 billion each via the 182-day and 364-day T-bills.
National Treasurer Rosalia V. de Leon said the decline in T-bill yields yesterday indicates continued strong liquidity in the market.
“It was a full award with hefty submission and with rates aligned with secondary levels. This demonstrated sustained liquidity onshore,” Ms. De Leon told reporters in a Viber message after the auction on Monday.
At the secondary market on Monday, the three-month, six-month and one-year T-bills fetched yields of 1.137%, 1.586% and 1.799%, respectively, based on the PHL Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.
Meanwhile, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said investors continue to prefer the short-tenored T-bills amid uncertainties in the economic outlook.
“Lack of fresh leads and outlets for the abundance of cash on hand pushed investors to the safest and, for now, only game in town: T-bills,” Mr. Mapa said in an e-mail.
“With domestic activity still hobbled by concerns about the virus and overall challenging job market, we do expect these trends to persist for the balance of the year,” he added.
The Treasury wanted to raise P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly Treasury bond auctions. Yesterday’s offering was the last one for October.
During the month, it made full awards of its offerings of government securities and even opened its tap facility several times as demand stayed strong, with the market looking for safe investment outlets to put their excess cash to work.
The government wants to borrow around P3 trillion this year from local and foreign lenders to help fund its budget deficit expected to hit 9.6% of the country’s gross domestic product. — K.K.T. Jose
PROPERTY developer SM Prime Holdings, Inc. reported a consolidated net income of P14.4 billion in the nine months to September, a 48% decrease from its P27.6-billion posting last year.
In a press release on Monday, SM Prime said that its consolidated revenues fell 29% to P60.7 billion, as its mall business declined during the period.
Its Philippine mall businesses logged in revenues of P18.3 billion, which is 57% lower than last year. Rental income of local malls was recorded at P16.8 billion, which is 52% lower from P42 billion in the previous year.
According to SM Prime President Jeffrey C. Lim, the developer’s malls are “slightly recovering” amid the global health crisis, which has affected the local economy.
“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to re-open more industries to help the economy going in to the second half of the year. We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter,” said Mr. Lim in a statement.
SM Prime’s residential business, led by SM Development Corp. (SMDC), posted a 7% revenue increase to P34.2 billion year-on-year.
With the construction of new and expanding projects, SMDC announced that it is expecting to increase its inventory and continue offering ready-for-occupancy units.
Meanwhile, SM Prime’s commercial properties business reported a P3.7-billion revenue in the nine-month period, with its operating income reaching P3.3 billion.
SM Prime’s hotels and convention centers business segment posted revenues of P1.3 billion as quarantine measures eased in the country.
On Monday, SM Prime shares closed at P34.20 apiece, down 30 centavos or 0.87% from the last session. — Angelica Y. Yang
