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Virtual Cinemalaya kicks off

CINEMALAYA, the country’s largest independent film festival, is back for its 16th year though unlike other years where it was held in the halls and theaters of the Cultural Center of the Philippines (CCP), the pandemic has forced the festival to go online. But instead of being a setback, the online installment of the festival can be viewed more as an experiment on how things may go in the near future, though its organizers said it may not be a seamless experience for now.

“It’s a brave new world. We don’t expect a seamless experience, but I hope our viewers appreciate that this [was made] in the context of a learning curve,” Chris B. Millado, artistic director of the CCP and festival director of Cinemalaya, said during a digital conference in July.

“I think this will only enhance the work that we’re doing. In fact, we were thinking about [going online] a few years back… I think people’s viewing behaviors have changed with what’s going on, so hopefully this can be translated into continued if not increased viewership in Cinemalaya,” he added.

The festival will run from Aug. 7 to 16 via  the video-sharing website Vimeo, and will feature 10 short films in its main competition section and another 20 in the exhibition section.

In March, Cinemalaya announced that it was postponing the festival because of the COVID-19 lockdown and its organizers admitted that they would have canceled this year’s edition completely if not for the fact that they had already received some 240 short film submissions.

“These people submitted their films… and [we thought] this would be a nice time to highlight the short filmmakers. So we said we should continue with the festival and make the short films the main event this year,” Jose Javier Reyes, competition and monitoring chairperson of the festival, said at the conference in the vernacular.

This year’s 10 competition short films are: Ang Gasgas na Plaka ni Lolo Bert (The Broken Vinyl Record) by Janina Gacosta and Cheska Marfori; Ang Pagpakalma sa Unos (To Calm the Pig Inside) by Joanna Vasquez Arong; Excuse Me Miss, Miss, Miss by Sonny Calvento; Fatigued by James Robin Mayo; Living Things by Martika Ramirez Escobar; Pabasa Kan Pasyon by Hubert Tibi; Quing Lalam Ning Aldo (Under the Sun) by Reeden Fajardo; The Slums by Jan Andrei Cobey; Tokwifi by Carla Pulido Ocampo; and Utwas (Arise) by Richard Salvadico and Arlie Sweet Sumagaysay.

The eight full-length features which were originally set for screening this year will be moved to next year in what is hoped to be an 18 full-length feature carambola as they will be competing against the 10 features selected for 2021.

Talkbacks, Dokyu, and masterclasses

So, yes, this is a whole new Cinemalaya providing an entirely new experience but it still is Cinemalaya, which means the well-loved sections such as the Dokyu (documentary) section and masterclasses and talkbacks with the creators will be held.

The documentary section is curated by filmmaker and screenwriter Clodualdo “Doy” del Mundo, Jr., and the films that were chosen are “portraits of individuals.” They are Overseas (2019) by Yoon Sung-A and Elihiya sa Paglimot (Elegy of Forgetting), a 2018 film by Kristoffer Brugada.

Overseas was described by Mr. Del Mundo in a statement as an “empathetic film about Filipina women who are training for their work in foreign lands as domestic helpers,” while Elihiya is a film that “records his father’s journey to forgetting.” 

Indie Nation, a section featuring independent films, will be featuring four full-length films: Mindanao (2020) by Brillante Ma. Mendoza, Watch Me Kill (2018) by Tyrone Acierto, Jesusa (2019) by Ronald Carballo, and Circa (2019) by Adolfo B. Alix, Jr. Circa was veteran actress Anita Linda’s last film before she passed away in June at the age of 95.

And in tribute to Ms. Linda, Cinemalaya is holding a special screening of her film Adela (2008). The festival is also paying tribute to award-winning director Peque Gallaga, who passed away in May at the age of 76, by screening his film Unfaithful Wife (1986).

A talkback session for the tribute screenings will be held on Aug. 15, at  3 p.m. and 6 p.m.

The festival’s Premiere section starts Aug. 10 with Basurero, a short film by Eileen Cabiling on Vimeo, which will be followed by a talkback with her and her cast at 7 p.m. Nang Em by Maria Ranillo premieres on Aug. 11, followed by a talkback with the director and her actors at 3:30 p.m. Heneral Rizal by Chuck Guttieres will also be premiering on Aug. 11 and will be followed by a talkback with the director and his actor, though no time has been announced.

Famed scriptwriter Ricky Lee will be holding two masterclasses on storytelling on Aug. 9 and 15 about how to find one’s voice in writing and how to write during a pandemic. Mr. Lee’s masterclass is priced at P300. Former students of Mr. Lee will be holding a reunion on Aug. 8 at 1 p.m.

The talkbacks and masterclasses will be streamed on the CCP Facebook page and on live streaming site, Kumu. 

The Cinemalaya awards ceremony will be on Aug. 12 via Kumu.

Fringe Cinemalaya events

On Aug. 7, after the premiere of the short films in competition, there will be talkbacks with the directors at 4:20 p.m. and 6:15 p.m. 

Gawad Alternatibo, considered the longest-running independent film competition in Asia, will have its opening program on the same day at 6:30 p.m. Talkbacks for the Gawad Alternatibo entries will happen on the same day as their premieres starting at 3:30 p.m.

The awarding ceremony for Gawad Alternatibo is on Aug. 15, 7 p.m.

The films in Gawad Alternatibo include entries from the European Union and Iran, shorts from the School of Slow Media alongside a “human-centered” storytelling workshop, shorts from QuaranTime Chronicles, documentary essays from alternative media, and winning shorts from the Department of Education’s national festival of Talents-Sineliksik competition.

Gawad Alternatibo also has a section for independent games which can be accessed on their website. Gameplays of the entries will be livestreamed on the CCP, Cinemalaya, and Gawad Alternatibo Facebook pages from Aug. 6 to 14.

Cinemalaya Retro Shorts: Women in Short Films and Cinemalaya Retro Shorts: The New Generation will have talkbacks with filmmakers on Aug. 8 at 4:30 p.m. and 7 p.m.., respectively. The Retro Shorts will also have back-to-back talkbacks on Aug. 9 at 5:15 p.m. and 7:15 p.m. to be moderated by actress Sheenly Gener, and another on Aug. 10, 4:30 p.m.

Cinemalaya Campus: Re-Imagining and Contextualizing Filmmaking launches on Aug. 10 and runs until Aug. 14. There will be two sessions daily at 10 a.m. and 11 a.m. On Aug. 14, short films will be screened within the campus session.

On Aug. 13, there will be a panel discussion on Experiments During Quarantine featuring the Virgin LabFest artists and filmmakers.

All the events mentioned in this section can be viewed on the Cinemalaya and CCP Facebook pages and on Kumu.

Tickets are $4 (P200, estimate) for the standard Vimeo bundle and $7 (P350, estimate) for the premium Vimeo bundle. The standard bundle includes films in competition, in exhibition, retrospective full-lengths and shorts, and the documentary section. The premium bundles include all these plus access to premieres, the tributes, digital classics, and talkbacks.

Cinemalaya Independent Film Festival will run from Aug. 7 to 16.

For the complete schedule and more information, visit the CCP website (www.culturalcenter.gov.ph) and the Cinemalaya and CCP social media pages. — Zsarlene B. Chua

Alliance Global to diversify for new revenue sources

By Denise A. Valdez Senior Reporter

ALLIANCE GLOBAL GROUP, Inc. (AGI) is embarking on an earnings diversification and digitalization strategy to help support recovery from the impact of the coronavirus pandemic.

In the company’s annual stockholders’ meeting held virtually on Thursday, AGI Vice-Chairman and CEO Kevin Andrew L. Tan introduced a five-point recovery strategy which centers on opening new revenue streams to support its finances.

“While sticking to our core competence in real estate and consumer sectors, we are diversifying and expanding our revenue mix to provide for future growth without sacrificing earnings stability,” he said.

Mr. Tan did not specify how AGI will do this, but he mentioned how the diversification of Megaworld Corp. and Emperador, Inc. have involved offering new projects and entering new markets while sticking to their core businesses.

Megaworld started boosting its recurring revenue streams in 2015 with the opening of more office buildings and lifestyle malls to complement its real estate sales. It also acquired more properties outside Metro Manila, which helped cushion its revenues from localized dips.

On the other hand, Emperador has started bringing international markets into its portfolio, as it strengthened the sale of its products in countries such as China, United Kingdom, Russia, United States, Sweden, Spain and Indo-China.

Apart from diversification, the other elements in AGI’s five-point strategy are digitalization, financial flexibility, adaptability, and sustainability and well-being.

Megaworld has recently announced forming a digital subsidiary, AGILE Digital Ventures, Inc., which would invest in technology startups to adapt to the changing market.

It is pouring $5 million (about P250 million) in its own startup brand PICK.A.ROO, an on-demand lifestyle delivery mobile app that will launch on Aug. 18.

As part of keeping its financial flexibility, AGI has cut its 2020 budget for capital expenditures by almost half to P42 billion, most of which will go to Megaworld’s residential, office and mall projects that are already committed for completion. While its priority is to preserve cash, Mr. Tan said the company remains open to opportunities that may arise, particularly in land banking and acquisitions.

“All throughout (several) milestones in our company’s history, one underlying factor that allowed AGI to take advantage of those opportunities was its strong balance sheet, which was achieved through years of financial discipline and prudence,” he said.

“Businesses should pave the way in coexisting with the virus in order to survive,” Mr. Tan added. AGI earnings dropped 32% to P3 billion in the first quarter as a result of the Taal Volcano eruption in January and the coronavirus-related lockdown in March.

AGI is the holding firm of tycoon Andrew L. Tan, who also has interests in hotel and casino through Travellers International Hotel Group, Inc., and in McDonald’s Philippines through a joint venture with the Yang family.

Shares in AGI at the stock exchange dipped seven centavos or 1.25% to P5.53 each on Thursday.

San Miguel incurs P4-B net loss as Petron becomes unprofitable

SAN MIGUEL CORP. (SMC) booked a P4-billion net loss in the six months to June, as its fuel unit became unprofitable during the coronavirus-related quarantine.

In an investor presentation posted on its website on Thursday, SMC said the coronavirus pandemic made it bleed in the first semester, reversing its net income of P26.15 billion in the same period last year.

Consolidated revenues dropped 31% to P352.8 billion, as income from operations contracted 74% to P14.93 billion. By business segment, SMC’s fuel unit Petron Corp. and beer unit San Miguel Brewery, Inc. (SMB) were the main drag of the decline.

Petron posted a net loss of P14.2 billion, a turnaround from its net income of P2.6 billion last year. Consolidated revenues slumped 40% to P152.4 billion.

It attributed the reversal to the volatility of global crude prices, and the eventual imposition of a lockdown in March which restricted nonessential travel.

SMB also suffered from the lockdown, as the government imposed a liquor ban to match the measure, thus pulling down the company’s revenues by 39% to P42.8 billion.

It also started seeing the effects of the higher excise tax on sin products, as it recorded a 62% profit drop to P5.02 billion. But the 28% net growth of the spirits business to P1.26 billion, and the profit jump of the foods business to P1.34 billion from last year’s P447 million, tempered the decline in the consolidated net income of San Miguel Food and Beverage, Inc. to a 19% drop to P122.82 billion.

“The first half was particularly challenging for most in the business sector but we are seeing strong indications of a recovery for SMC businesses, and we remain focused and determined to build on these gains,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement.

“Government reopening the economy, and allowing businesses to operate under strict health and safety protocols, was a very good call,” he added.

SMC ended the semester with its cash growing to P344 billion from P286 billion in end-2019. Its interest-bearing debt also grew to P953 billion from P852 billion. The company’s net debt-to-total equity stood at 0.93x. Shares in SMC at the stock exchange increased 30 centavos or 0.31% to P97.30 each on Thursday. — Denise A. Valdez

Japan rises

By Noel Vera

SERIES REVIEW

Japan Sinks
Directed by Masaaki Yuasa and Ho Pyeon-gang
Netflix

ONCE AGAIN Masaaki Yuasa put out an anime series (Japan Sinks, 2020, available on Netflix — actually his second after the delightful Keep Your Hands Off Eizouken!) and once again he flouts expectations, of both his fans and fans of disaster movies. This time though Yuasa may have fashioned not just a quietly subversive disaster epic but the fiction story summing up our feelings in this disaster of a year, 2020.

Where the source novel (by Sakyo Komatsu) focused on government efforts to cope with the cataclysm, Yuasa (with co-director Ho Pyeon-gang and writer Toshio Yoshitaka adapting) focuses on the common folk struggling to stay alive. Where the novel had mostly Japanese characters, the series takes extra effort to present a more diversified cast: wife and mother Mari Muto is from Cebu, Philippines; popular YouTube celebrity KITE is from Estonia; hitchhiker and amateur magician Daniel is from Kosovo; submarine pilot turned research scientist Onodera — who predicted Japan’s downfall — is a paraplegic (a source of unspoken embarrassment in everyday Japanese society). A sinister religious cult is introduced, its subplot springing a few surprises (and not a little controversy among viewers); the actual disaster setpieces (the various earthquakes, Mt. Fuji erupting, Japan’s promised submersion) look and feel, well, different from the usual onscreen depiction.

When the first quake strikes, Yuasa cuts to four locations: a girl’s locker room (where middle schooler Ayumu Muto is dressing after track practice); an Olympic stadium (where father Koichiro is installing a jumbotron screen); the Muto home where youngest son Go is waiting; and an inflight jet holding Mari, who is coming back to Japan. The locker, stadium, and home sequences are handled impressionistically; mainly brief shots strung together (perhaps the most effective being Ayumu and her classmates flung against a rushing gray background, to land every which way they can). Mari’s plane crashes against a river, resting its nose against a bridge but the actual crash is skipped over — and you realize that perhaps Yuasa didn’t have the budget to visualize the series properly, hence, the elliptical if not downright frugal approach. He may have decided to pour money instead in unexpected directions: a garden lit at night in spectacular purple, blue, and green, as a signal to draw people together; a panning shot of the Shiba-koen district, dim concrete towers lit from below by what looks like a vast bed of coals (glide past the famed Tokyo Tower, upper half hanging to one side); a quietly spectacular overhead shot of a Tokyo suburb some 10 to 20 feet submerged, the water so clear you can still see the streets, the tops of trees and buildings poking out of the gently lapping waves. The family is happily reunited — with next-door neighbor Nanami having found Go and bandaged his eyes, and track-star-turned recluse Haruo coming along — but Yuasa has one more shock in store: bodies dropping from the sky, and a helicopter spinning out of control to end its trajectory in a nearby fireball. His apparent message: don’t expect the usual disaster movie, with tropes and conventions providing comfort in the midst of the chaos — Yuasa has neither the budget nor inclination. Anything can happen to anyone anytime, and probably will.

That’s what initial audiences apparently reacted against: the series flouts conventions too much, is apparently unmoored and ridiculous in its narrative and tone. Plot coincidences abound, characters survive by the most unlikely of means, and deaths are often passed over if not downright ignored. Yuasa addresses the latter early on (skip the rest of this paragraph if you haven’t seen the series and intend to!): Koichiro is the best qualified and most natural leader of the group, an outdoorsman who knows where to find potable water and yams and even how to field-dress a wild boar (which he dispatches himself) — and what does Yuasa do? Take the man away, literally, with a bang and a cloud of smoke. Nanami has a mini-arc where she develops an attraction to Haruo, has to fend off an attempted sexual assault by a truck driver, then dies, just like that. Ayumu — the series’ ostensible protagonist — is horrified by these deaths, partly because they’re so sudden, partly because she feels she had somehow caused them (Koichiro because she wanted yams and he had died looking for some, Nanami because Ayumu also had a crush on Haruo, and was mildly jealous). Crassly manipulative? Maybe, but remember the story is being told through Ayumu’s eyes, at least in these passages, and she can’t help but see the world in terms of how it affects her and she affects it.

As for several characters’ passing, Mari’s reaction seems particularly noteworthy: she stoically shrugs them off, especially the first one. Ayumi reflects our feelings and says as much to Mari: how can the woman just ignore death like that? But Mari’s reflects one way people cope, rightly or wrongly: by focusing on the business of survival. Mari feels the trauma and Aymumu’s hurtful angry words, and internalizes it — a recognizably human response, just not the kind we’re used to seeing in movies or on TV.

Then there’s the cult (Again, skip the rest of this paragraph if you haven’t seen the series and intend to!), which admittedly comes at a low point in the series, animation wise — looks like Yuasa was scraping financial bottom when he worked on these episodes. We’re waiting to learn that the cult is either fake or somehow evil, and neither expectation is fulfilled: the cult does have what seems like a genuine medium, or at least an actual telepath, and its intentions turn out to be sincerely benign — the Mutos aren’t asked to convert, and they enjoy a few days’ rest, not to mention a hot shower. The rest stop does function as a turning point for several of the characters: Mari conducts a sneakily flirtatious relationship with the sad sack Daniel and ultimately allows herself to mourn Koichiro, Ayumu and Mari finally reconcile, and an old man named Kunio — an unapologetic racist — eventually relents in his racism. 

Mind you I’m not saying Yuasa and his writer Yoshitaka do flawless plotting (Komatsu I absolve because very little of his original story was used, aside from the premise). If the story feels like it pinballs all over the place, I’d say that reflects the relentlessly random nature of a disaster and its aftermath; if we’re upset that the plot seems to shortchange some characters, I’d say that’s thanks to the care put into their development by the makers, our indignation a tribute to the emotional investment we in turn have put into them. 

The last few episodes are devoted to KITE and his attempt at data gathering, the resolution to this particular plotline giving rise to a flaw no one seems to have noticed (Again skip the paragraph if you haven’t seen and intend to!): KITE implies the possibility of saving Japan but no one points out KITE’s failure — that he did little to prevent the sinking and even less to do with its partial return. I submit that in a way KITE didn’t fail: he (with Onodera’s help) salvaged data predicting the return of portions of Japan, and that data helped convince the rest of the world to continue recognizing Japan’s sovereignty. KITE in effect helped preserve the idea of Japan, not just among its remaining citizens (the Muto family in particular) but among the international community.

Which leads us to one of the strongest criticisms leveled against the series: that it, like its source novel, is a jingoistic piece of nationalistic propaganda, meant to promote the 2020 Tokyo Olympics. I’d argue that: 1.) Yuasa kept very little of the original novel, and, 2.) the series if anything is an argument against nationalism. When Japanese athletes do march in the 2020 opening ceremonies (an event that, right off, marks this series as taking place in an alternate universe) it’s as citizens of a country whose land has vanished. These athletes, like KITE, believe in the idea of Japan, of a people with marked flaws (provincialism; suspicion of outsiders or those who seem different) and even more marked virtues (the ability to work hard and when challenged, work harder; the ability to get along with others under the worst circumstances; the ability to sacrifice oneself for the common good). The athletes wave these flaws and virtues higher than any mere flag, and invite all and sundry (including paraplegics and those of mixed racial blood) to imitate, possibly integrate, perhaps declare themselves in turn honorary Japanese citizens in a gesture of solidarity (as an American president once declared, inspired by similar sentiments: “Ich bein ein Berliner”).

But the series, I submit, does more than celebrate Japan (as a concept not necessarily as a nation): it captures the mood of desperation we all feel, isolated and struggling to stay in contact and stay sane. Japan Sinks with its beleaguered but persistent optimism feels like perfect viewing in this time of corona, an essential if eclectic tool for mental well-being we can include in our select survival kit.

Stuff to do at home

Art Talk: We bring Edvard Munch to You

THE Munch Museum is holding a webinar about Edvard Munch’s relationship to the coast, nature, and recreation. The talk will be helmed by curators Patricia Berman and Signe Endresen. The talk can be seen free of charge by following this link: https://vier.live/acts/munch-relationship-to-the-coast-nature-and-recreation, on Aug. 18 at 4 p.m. UTC+02. (UTC 4 p.m. in Manila is at midnight). Other talks may also be accessed at the museum’s Facebook page, @munchmuseet. 

Philippine Philharmonic Orchestra’s pocket concert series

THE PHILIPPINE Philharmonic Orchestra (PPO) continues its concert series PPO By Your Bedside, on Aug. 7, 8 p.m., on the Cultural Center of the Philippines’ website. The concert’s repertoire will include the songs “Usahay” by Gregorio Labja, to be performed by Joy Allan De la Cruz on the viola; “Bayan Ko” by Constancio de Guzman, to be performed by Jay Ar Mesa on the French horn and Manuel Agustine Chua on the guitar; the Pangasinense folk song “Malinac Lay Labi” as performed by Dino Decena and Christian Tan on violin, Rey Casey Concepcion on the viola, Giancarlo Gonzales on the Cello, and Rommel Cruz on the contrabass; and Wency Cornejo’s ”Hanggang,” performed by Hercules Santiago on flute, Christian Tan on violin, and Giuseppe Diestro on cello. PPO By Your Bedside is part of The Music for Healing: PPO in Quarantine Pocket Concert Series, an ongoing program which can be viewed on the PPO FB page and the CCP YouTube as platforms. Initially intended as an online music offering to Filipinos who are recuperating in their beds in hospitals or at home as therapy to aid in their healing, it also aims to accompany the whole family in coping with the pandemic situation and the frontliners who bravely provide their services to fellow countrymen in need. The series offers two other programs, the PPO in the Workplace pocket concert and the PPO in your Living Room pocket concert.

Gabriel Barredo’s Opera by Ballet Philippines

GABRIEL BARREDO’S Opera, with choreography by Redha, considered by Ballet Philippines’ President Kathleen Lior-Liechtenstein as one of their best performances, will only be available for streaming until Aug. 14 as the ballet has been accepted to the International Ballet Festival of Miami 2020. The ballet is currently on view on the Ballet Philippines website: ballet.ph.

Bimpo Improv offers class

IMPROVISATIONAL theater group Bimpo, is holding an hour-long session featuring improv games and exercises “in a safe, non judgmental space.” Called Quaranbreak: Pause and Play, the session is free and will be held on Aug. 15, 7 p.m., via Zoom. Slots are limited. To register, go to https://tinyurl.com/y5a5dvvh or message 0956-554-1933.

PETA’s Online Theater Workshops

THE PHILIPPINE Educational Theater Association (PETA) is holding a series of online theater workshops starting Aug. 17 until Sept. 5. Topics include introductions to visual arts and writing, acting workshops for screen and theater, and creative musical theater. For more information and to register, visit www.bit.ly/PETAOnlineWorkshop or contact betitasarmiento@petatheater.com or via 0926-406-6858.

PPO Instrument Petting Zoo spotlights the French Horn

THE PPO Instrument Petting Zoo continues with its live online program with the spotlight on the French Horn on Aug. 9 at 4 p.m. via the PPO Facebook page. French horn player Jay-Ar B. Mesa, a member of the horn section of the Philippine Philharmonic Orchestra (PPO), will talk about the French horn and demonstrate how it is played. Mesa will also perform classical pieces suited for the French horn. The PPO Instrument Petting Zoo, a project of the Cultural Center of the Philippines and the PPO, aims to promote appreciation for musical instruments of the orchestra and its music among children and families. It is held every Sunday at 4 p.m., and runs for several months. 

Ballet Philippines holds masterclass

BALLET PHILIPPINES’ Masterclass by the Masters this week features Victoria Ananyan, a Principal Dancer at Les Ballet de Monte Carlo, on Aug. 7, 4 p.m. For details go to ballet.ph.

Enchanted Kingdom’s Kiddie Chef Challenge 2020

ENCHANTED KINGDOM’S Kiddie Chef Challenge 2020: Recipes from Home Edition is an online challenge open to all aspiring little chefs ages four to 12 years old who want to show off their culinary skills. The child’s food entry, made  using Purefoods Tender Juicy Hotdog, SPAM Luncheon Meat and/or Magnolia products inspired by one of EK’s seven themed zones (check the official website for information on EK’s zones www.enchantedkingdom.ph), can be shared until Aug. 11. Winners will be announced on Aug. 14, and will receive four Regular Day Passes each plus a special gift basket from EK partners. To join one must first “like” Enchanted Kingdom’s official Facebook page. All entries must have the complete recipe (including the participating products used) and a photo collage of the finished dish with participant’s photo while cooking. Post the photo at EK Kiddie Chef Challenge FB post’s comment section, and use the hashtags: #EKKiddieChef, #iloveEK and #EKatHome. For more information, visit Enchanted Kingdom’s official website and Facebook page at www.enchantedkingdom.ph and www.facebook.com/enchantedkingdom.ph or click https://web.facebook.com/notes/enchanted-kingdom/kiddie-chef-challenge-recipes-from-home/3624944944200412/?_rdc=1&_rdr to know the complete contest mechanics.

Infection risk prompts big push to set up worker salary accounts

THE Department of Labor and Employment (DoLE) said employers need to minimize physical contact when paying their workers by setting up accounts they can deposit wages to.

In Labor Advisory No. 26 dated Aug. 3, the DoLE said it aims to “encourage and enable all private establishments” to use salary accounts for wages and other benefits, to minimize the possibility of spreading the coronavirus.

It said employers must also help their workers gain access to “formal financial services for the promotion of their welfare, to reduce costs and risks of physical cash disbursement, and to promote digital payments as a safer alternative to physical exchange of bills and coins, thereby reducing physical contact and minimizing transmission or spread of…COVID-19 (coronavirus disease 2019).”

Employers were also encouraged to help unbanked workers gain access to electronic money services. Employees with bank accounts should also be given the option to receive their pay via PESONet, the central bank’s electronic payments network.

Management should collect no additional charges for directly depositing salaries, and were encouraged to tell their workers about the advantages of having formal accounts, it said.

The DoLE also recommended that companies seek the assistance of the Bangko Sentral ng Pilipinas Center for Learning and Inclusion Advocacy for materials on financial literacy. — Gillian M. Cortez

ICTSI net profit down 4% to $54 million

RAZON-LED International Container Terminal Services, Inc. (ICTSI) saw its second-quarter net income attributable to equity holders decline by 4% to $53.8 million due to lower operating income, increase in interest on concession rights payable, and expenses related to the coronavirus pandemic.

The second-quarter net income is 9.7% lower than the previous quarter’s $59.6 million.

In a regulatory filing on Thursday, the listed firm said the decrease was “partially tapered by a reduction in net loss at its greenfield terminal in Melbourne, Australia, and lower equity in net loss of joint ventures.”

The global port developer and operator saw its gross revenues decline by 5% to $348.5 million from $368 million. The amount is 7.3% lower than the $375.8 million earned in the first three months of the year.

ICTSI said trade activities declined during the period due to the impact of the coronavirus pandemic and government- imposed lockdowns.

The company’s consolidated throughput for the quarter dropped 11% to 2,290,779 twenty-foot equivalent units (TEUs) from last year’s 2,563,244 TEUs.

In the first quarter, ICTSI reported a consolidated throughput of 2,508,986 TEUs, driven by the contribution of its new terminal in Rio de Janeiro in Brazil and new services at certain terminals.

“Capital expenditures (capex), excluding capitalized borrowing costs, for the six months ended June 30, amounted to $91.2 million,” ICTSI said.

The company has cut its capex guidance for 2020 to about $160 million. It said it intends to use the amount for its expansion projects this year.

“Our primary focus and central to our decision making since the start of the coronavirus outbreak has been, and remains, the safety and well-being of our employees, customers and our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a statement.

He said the company took immediate action to preserve cash and reduced its capital expenditure in what he described as a period of “significantly reduced economic and international trade activity, brought about by protracted lockdown periods for many countries around the world.”

“These prudent measures taken early on, our diversified portfolio and maintaining a very high level of service to our clients has helped cushion the impact from the pandemic and generated a resilient and better-than-expected performance,” Mr. Razon said.

He expects the second half of the year to remain challenging for the company because of uncertainties.

“However, ICTSI is well-positioned to navigate through these uncertain times, underpinned by our 32 terminals diversely located around the world, the resilience of our business model, agility and a strong capital structure,” Mr. Razon said.

Shares in ICTSI on Thursday closed 0.52% higher at P97.50 apiece. — Arjay L. Balinbin

Allianz PNB to widen reach

ALLIANZ PNB Life Insurance, Inc. has ramped up its digitization efforts and is also looking to boost its branch network as it looks to widen its reach in the microinsurance sector.

“[T]he segmentation of our customers is way bigger so we really need to move also more into the microinsurance sector to allow and to include more rural communities as well,” Allianz PNB Life Chief Executive Officer Alexander Grenz said in an online briefing for the launch of their partnership with health technology startup reach52.

Mr. Grenz said they are looking to add more branches to the 15 they have across the country to reach more customers. He added the 700-strong branch network of Philippine National Bank (PNB) across the country is also an advantage for the insurer.

Allianz PNB has also been boosting its digitalization drive through robot process automation for insurance applications and claims, Mr. Grenz said.

He said while there are some limitations to making the application process quicker amid regulatory requirements, PNB Allianz aims to “deliver a policy within five minutes.”

The need to leverage on technology has increased in urgency amid the coronavirus disease 2019 (COVID-19) pandemic, which Mr. Grenz said “put digitization on steroids.”

“Consumer needs have changed as well. And we basically launched at the beginning of COVID our virtual sales process. So nowadays, instead of doing the personal selling process, our distribution across the Philippines is enabled to sell virtually,” he said.

Local insurers have already disbursed about P326 million so far due to COVID-19-related claims, Mr. Grenz said. The official said one of Allianz PNB’s products that caters to those who want to get more health benefits is Allianz Well!, which could be more attractive to the A and B market due to its P60,000 to P70,000 yearly premium. Its international coverage is worth P100 million.

Through its partnership with reach52, Allianz PNB will grant life insurance worth P25,000 to beneficiaries in Iloilo for every Allianz Well! product sold from August to December this year. This will give the beneficiary health coverage against COVID-19 for a year.

Allianz PNB’s premium income from life insurance rose 10% to P9.44 billion in 2019 from P8.56 billion in 2018, data from the Insurance Commission showed. This put the firm at tenth place in terms of the highest premium income among life insurers last year.

The German firm acquired 51% of PNB Life Insurance, Inc., the life insurance arm of the Tan-led lender, in June 2016. — Luz Wendy T. Noble

PXP Energy raises stake in Canada-based unit

MANUEL V PANGILINAN-LED PXP Energy Corp. has increased its stock ownership in its gas and oil exploration unit based in Canada that is exploring a petroleum block in the contested West Philippine Sea.

The company told the stock exchange on Thursday that it acquired 450 million new shares of FEC Resources, Inc. via a stock rights offering at $1.01 million (around P50 million) or $0.00225 each share.

This raised its shareholding to 78.39% from 54.99% of the holding firm.

PXP Energy’s share subscription also led to a 1.59% increase in its economic interest to 77.66% in Forum Energy Ltd. (FEL), a United Kingdom-based exploration firm operating in the Philippines, in which FEC Resources has a 6.8% interest.

FEC Resources owns a 70% interest in Service Contract (SC) 72 in Reed Bank in the West Philippine Sea, which likely bears as much as 3 trillion cubic feet of gas resources. The Sampaguita gas prospect is also situated in the 880,000-hectare block.

Aside from paying administrative expenses, FEC Resources said it will use the proceeds from the share purchase partly to fund its participation in any fund-raising activity of FEL to maintain its ownership in the company.

To recall, PXP Energy will conduct a 2,600-square-kilometer 3D seismic survey in the petroleum block for oil potential, according to Daniel P. Carlos, its president and director, during the company’s annual stockholders’ meeting last month. Currently, exploration activities in the area are suspended upon the invocation of a force majeure due to the coronavirus pandemic.

Moreover, FEC Resources also holds a 66.7% interest in SC 40 in North Cebu (SC 40) and a minority stake in the Galoc block in SC 14 in northwest Palawan.

On Thursday, shares in PXP Energy went up 3.93% to close at P5.56 apiece. — Adam J. Ang

Actress Son Ye Jin is Smart’s newest endorser

TWO MONTHS after telecommunication company Smart Communications named Korean actor Hyun Bin as its endorser, the company has added another Korean to the mix: Mr. Hyun’s leading lady in the hit series Crash Landing on You, Son Ye Jin, as the face of its postpaid line.

“Well it was really an easy choice for us. We really hoped we could bring her in with her popularity with Hyun Bin and CLOY (Crash Landing on You),” Alfredo S. Panlilio, CEO and President of Smart Communications and PLDT’s chief revenue officer, said during the launch on Aug. 4.

Mr. Panlilio, in June, said that they wouldn’t want Hyun Bin to be “lonely” when asked about the prospect of having another Korean endorser. This, according to Jane J. Basas, Smart’s SVP and head of consumer wireless business, was the catalyst for bringing Ms. Son to the Smart fold.

“We knew that we had to get her because of the positive reaction to that statement,” Ms. Basas said in the same event.

It also helped that the Hyun Bin campaign was so successful that Ms. Basas said it was “one of the best in the history of the brand.”

“The appeal just cut across demographics and economic classes. And I think in terms of how he translated into the business… June happened to be the best month this year for Smart, even better than the three months pre-COVID. We hope that performance is sustained with Son Ye Jin now joining the family,” Ms. Basa explained.

Ms. Son is now the face of the company’s postpaid line, Smart Signature, and her TV commercial features her in South Korea riding a motorcycle.

Son Ye Jin rose to fame in romance films and series including The Classic (2003), Summer Scent (2003), and April Snow (2005). She also gained recognition for her versatility as shown in the films The Last Princess (2016) and The Truth Beneath (2016).

She rose to international fame when she played the spunky Yoon Seri, an heiress who survives a paragliding crash and meets and falls in love with a North Korean soldier, captain Ri Jeong Hyeok in Crash Landing on You. The show aired on Netflix and ran on Korean television from 2019 to 2020. The show, during its height of popularity, was consistently in the top 10 (or at the top) list of Netflix’s trending shows in the Philippines.

“As an actress, I am always grateful for having a platform to entertain and touch the lives of others through my craft. I thank Smart for giving me a way to specifically reach out to my Filipino fans and inspire them to make a mark in whatever path that they have chosen. I wish to see you all soon,” Ms. Son said in a statement. — ZBC

Ayala Land finishes P12-B REIT offering

AREIT, INC. of Ayala Land, Inc. (ALI) has completed the country’s first real estate investment trust (REIT) offering and is set to list at the Philippine Stock Exchange next week.

In a disclosure on Thursday, ALI said AREIT has ended the offer period for its P12.33-billion initial public offering on Monday, which saw a twice oversubscription from investors.

AREIT will list its shares at the exchange on Aug. 13.

The company offered up to 456.88 million common shares with an overallotment option of up to 45.69 million shares priced at P27 each. It has not disclosed on Thursday the total proceeds it generated from the offering.

“The landmark deal and the introduction of the new asset class was well-received by the market, with the deal more than fully covered with broad distribution across retail investors as well as international and domestic institutional investors,” ALI said.

About 70% of the issuance was offered to qualified institutional buyers that are either based in the Philippines or located outside the United States. Some 20% were offered to REIT-eligible trading participants and 10% were offered to local small investors.

A total of 96 eligible trading participants and more than 3,300 local small investors participated in the offering.

“High-quality domestic and international institutional investors locked in demand for the Philippines’ first REIT notwithstanding the continuing COVID-19 (coronavirus disease 2019) global pandemic,” the company said.

AREIT had tapped BPI Capital Corp. as sole global coordinator and joint bookrunner for the offering. UBS AG Singapore Branch was sole international bookrunner for the international tranche, and BPI Capital, PNB Capital and Investment Corp. and SB Capital Investment Corp. were underwriters for the domestic tranche.

The portfolio of AREIT consists of three office buildings in Makati City: 24-storey commercial building Solaris One, two-tower mixed-use development Ayala North Exchange and five-storey commercial office McKinley Exchange.

Proceeds from the offering are intended to be used in buying Teleperformance Cebu and other real estate properties in Metro Manila and key regions.

Earnings of ALI in the first quarter dropped 41% to P4.3 billion as an effect of the Taal Volcano eruption and the coronavirus pandemic. It is allocating P69.8 billion for capital expenditures this year.

Shares in ALI at the stock exchange gained 30 centavos or 0.92% to P32.80 each on Thursday. — Denise A. Valdez

Mulan math ranges from financial bomb to modest moneymaker

By Christopher Palmeri and Kelly Gilblom, Bloomberg

DEPENDING ON who you ask, Walt Disney Co.’s decision to release its next big film Mulan online either guarantees the movie will lose money or could be a smart way to potentially break even on a $300-million investment.

With theaters in the US still largely shuttered due to the coronavirus, Disney will make the live-action redo of its 1998 animated hit available for purchase by Disney+ subscribers for an extra $30 starting Sept. 4.

Just how much money that produces is up for debate. The company is limiting the offer to subscribers of the company’s new streaming service, which numbered 60.5 million globally at last count. It will also release Mulan in the small number of theaters that are open.

Direct-to-consumer releases have been percolating in the film industry for years — and used to be a way for studios to ditch movies they thought would fail. But COVID-19 has changed that. Universal Studios, owned by Comcast Corp., gave families fresh fare at the peak of the pandemic with its April online release of the animated sequel Trolls World Tour. It produced more than 6 million downloads at $20 each, less than the first film did in theaters but a respectable amount just the same.

Bloomberg Intelligence analyst Geetha Ranganathan thinks Disney will have no problem getting 10 million fans to pay for the picture, generating $300 million. That’s at least enough to break even on the $200 million production cost and $100 million in marketing. Anything beyond that, including theater revenue and new Disney+ subscriptions, would make Mulan a winner.

Investors seemed to agree. They bid shares of Disney up 8.8% to $127.61 Tuesday in New York following the announcement and the company’s report of better-than-expected quarterly earnings.

But Michael Pachter, an analyst with Wedbush Securities, is more circumspect, suggesting no more than 3 million Disney+ subscribers will shell out that extra $30. That $90 million in revenue pales in comparison to what a successful Disney film does in theaters.

“Not good enough to offset a theatrical release, but good enough to offset zero in ticket sales,” Pachter said.

Variety, the Hollywood trade publication, asked people on Twitter if they would pay for the film. And 85% said no.

Last year, Disney had seven films top $1 billion at the box office, including the live-action remakes of Aladdin and The Lion King. Unlike digital downloads, ticket sales are split with theater owners.

Major theater chains declined to comment on the Mulan movie, but it’s likely Disney briefed them ahead of time. When the chief executive officer of Cinemark Holdings, Inc.’s shared a list of upcoming movies with investors on Tuesday, Mulan wasn’t even mentioned.

Financial Bind

Theater operators are in a bind. They have suffered huge financial losses as a result of the COVID-19 closings. AMC Entertainment Holdings, Inc., the largest US cinema owner, completed a restructuring of about $2.6 billion of debt this week.

The chain surprised the industry when it agreed last month to let Universal release movies online after just 17 days in theaters in exchange for a cut of the online revenue. The studio made it clear at the time it won’t be using that arrangement for all of its films.

Executives at Cinemark and Marcus Corp., another large exhibitor, said Tuesday that sharply curtailing the exclusive period for theaters isn’t a good idea.

Disney CEO Bob Chapek reassured some in the theater industry on his earnings call, saying the Mulan digital release would be a “one-off” and a learning experience. He made it clear he was as interested in the number of new streaming subscribers the film produces as the revenue from the downloads.

Recent Experience

There, Disney has had some recent experience. It’s been offering pay-per-view boxing and Ultimate Fighting Championship matches through its ESPN+ streaming service and indeed cited the latter Tuesday for an uptick in streaming revenue.

Another wild card for the studio is a theatrical release in China, where Disney+ isn’t offered. Mulan, given its Asian storyline and cast, was always considered a likely hit in that country, the world’s second-largest movie market.

But the film has some other baggage. Liu Yifei, the China-born actress starring in the film, caused an uproar and ongoing fodder for a #BoycottMulan hashtag after stating her support for Hong Kong police during pro-democracy protests. President Trump’s escalating trade war with the country could also affect its theatrical release there.

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