Investing Stocks in Philippines: May 2012

Tuesday, May 29, 2012

Stock News 2012: Puregold acquires Parco Supermarket

Puregold San Mateo (Photo credit: Wikipedia)
Listed supermarket chain operator Puregold Price Club Inc. has added Parco Supermarket to its growing retail portfolio.

In a disclosure to be Philippine Stock Exchange, Puregold said the acquisition will further expand its foothold in the C and D market segment.

“Puregold Price Club Inc., through the resolution issued by its Executive Committee on May 25, acquired 519,111 shares or the whole outstanding capital stock of Gant Group of Companies Inc.,” the company said.

Gant Group is the owner and operator of 19 branches of Parco Supermarket, which includes Pasig, Quezon City, Caloocan, Taytay in Rizal province and Meycauayan in Bulacan.

The shares were purchased from the Ong family, particularly from Dolores Ong, Patrick Richard Ong, Katrina Cindy Ong, Genevieve Mae Ong and Margaret Brigitte Ong. Puregold did not disclose the purchase price.

“Upon takeover, the stores will use the Parco brand,” Aida B. de Guzman, vice-president for marketing and business development of Puregold, said in a text message.

“With the Parco acquisition, our market coverage will expand, as Parco was able to establish loyal customer base of both C and D customers and resellers in the areas where they operate over the 29 years that they have been operating,” De Guzman said.

In April, Puregold completed its acquisition of upscale S&R Membership Shopping Club through a P16.5-billion share swap.

http://www.philstar.com/Article.aspx?articleId=811778&publicationSubCategoryId=66

Wednesday, May 23, 2012

Stock News 2012: ALI to develop Gatchalian's Valenzuela property

English: Blank map of Valenzuela city in the Philippines divided into its legislative districts (first district) (Photo credit: Wikipedia)
Property giant Ayala Land Inc. (ALI) has bagged a deal to develop the 60-hectare property in Valenzuela City that used to house the country’s biggest fully-integrated plastic manufacturing complex.

In a disclosure to the Philippine Stock Exchange, Philippine Estates Corp. (PhilEstates), the property development arm of the Gatchalians, said it will enter into an agreement with ALI subsidiary Avida Land Corp.

“The board of directors of PhilEstates authorized the development through joint venture of the corporation’s real estate property located in Brgy. Calumay, Valenzuela City,” the company said.

The 60-hectare Plastic City property will be developed into a residential, business and/or commercial condominium and/or subdivision project with Avida Land.

The board also authorized management to negotiate and finalize terms of the joint venture, PhilEstates said.

ALI is operating under five major brands – Ayala Land Premier for the high-end segment, Alveo Land for the middle-income segment, Avida Land for the “affordable” market, Amaia Land for economic housing unit and Buena Vida for socialized housing.

For this year, ALI plans to roll out 67 new projects with a potential sales value of around P90 billion, and has earmarked a record P37 billion for capital spending.

The bulk of the new developments will comprise 50 residential projects, equivalent to about 25,000 units across its five brands to cater to the different economic segments, or 25 percent more than the 20,000 units rolled out a year ago.

Last month, ALI announced it is in discussions with the Gatchalian Group who owns the sprawling Plastic City. The Gatchalian Group has long been searching for a strategic partner to convert its huge estate in Valenzuela into a modern mixed-use complex to maximize the untapped potential of the property.

The property used to house the warehouse facilities of Plastic City Industrial Corp. and Philfoods Inc. until the two firms ceased operations in 2002 due to losses.

In a filing with securities regulators, the Gatchalians, through Wellex Industries Inc., said the property is seen to contribute significantly towards the group’s maximum operation and financial position due to its encouraging prospect.

“Management is continuously in search for a reliable joint venture partners who have the means to continue its operations,” Wellex said.

In a separate disclosure, ALI said its board of directors approved the company’s plan to raise P1.3 billion through the sale of preferred shares.

For every share held as of June 4, the public can buy one preferred share at 10 centavos apiece. Offer period for the voting shares will be on June 18 up to June 22, 2012.

In February, ALI said it will issue P1.3 billion worth of preferred shares to comply with a Supreme Court ruling on foreign equity limits.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=809657

Sunday, May 20, 2012

Stock News 2012: MPTC earnings up 37% to P549M in Q1

Aerial View of Balintawak Toll Barrier, NLEx (Photo credit: Wikipedia)
Metro Pacific Tollways Corp. said its first quarter net earnings went up 37 percent to P549 million, fueled by increased toll revenues, lower financing costs and reduced provisions for probable losses on input value-added tax.

In its financial report submitted to securities regulators, MPTC said net toll revenues rose four percent to P1.67 billion, mainly due to the record-high traffic volume in the first quarter this year. Despite the increase in fuel prices, traffic volume was maintained due to the continuous efforts to make the North Luzon Expressway (NLEX) a better and safer travel route than alternative free roads.

Sales of trasnponders and magnetic cards declined 85 percent due to the outsourcing of the supply, sales and marketing of tarnsponders to Easytrip Services Corp.

Cost of services likewise went up four percent due to higher operator’s fees brought by the increase in parameters used in the escalation formula and increase in additional services rendered by Toll Management Corp. (TMC).

Operator’s fee increased nine percent to P375 million while repairs and maintenance decreased 36 percent to P21 million.

Equity in net earnings of affiliate TMC rose 21 percent to P52 million, driven by the increase in revenues from additional services rendered to Manila North Tollways Corp., Bases Conversion Development Authority and subcontractors.

MPTC earlier said it was eyeing revenues of more than P7 billion. MNTC holds the concession to operate and maintain NLEX and is owned 67.1 percent by MPTC.

TMC operates the NLEX for MNTC.

http://www.philstar.com/Article.aspx?articleId=808341&publicationSubCategoryId=66

Stock News 2012: Pancake House triples income

Yellow Cab Pizza Co. (Photo credit: Wikipedia)
Lorenzo-owned Pancake House Inc. tripled its first quarter net earnings to P32.74 million from P10.84 million a year ago, mainly driven by strong sales of its flagship brand Pancake House as well as new acquisition Yellow Cab.

Based on its financial report submitted to the Securities and Exchange Commission, Pancake House registered revenues of P830 million, up 87 percent, as system-wide sales hit nearly P1 billion from P552 million. The robust growth was attributed to new store openings and higher same-store sales.

Store sales went up to P353.07 million while commissary sales and franchise revenues increased 30.96 percent and 30.21 percent, respectively, due to increased number of franchisees and sustainable growth in same-store sales of franchisees.

Recurring income from operations rose 50 percent to P50 million due to the additional stores opened and increased efficiency in operations.

EBITDA (earnings before interest, taxes, depreciation and amortization) jumped 92 percent to P110 million with an increased margin of 13.2 percent from last year’s 12.9 percent as the company was able to further control all costs and expenses.

As of end-March 2012, the food conglomerate had a total of 266 stores: Pancake House (92), Dencios (17), Teriyaki Boy (33), Sizzlin Pepper Steak (18), Le Coeur de France (13), The Chicken Rice Shop (4), and Yellow Cab (89).

The acquisition of pizza chain Yellow Cab nearly doubled the group’s network of stores and translated into a broader reach, both geographically and across market demographics.

Pancake House acquired Yellow Cab in August 2011 for around P800 million.

With the full-year contribution of Yellow Cab, the group’s net earnings are forecast to grow 60 percent by yearend. System-wide sales are likewise seen to grow 47 percent to P4.7 billion on the back of new store openings.

http://www.philstar.com/Article.aspx?articleId=808344&publicationSubCategoryId=66

Saturday, May 19, 2012

Stock News 2012: Filinvest Land gets SEC okay to issue P11-B bonds

Metro Manila Transit Hino NYD-338 (fleet No 782) with Jeepneys in A. Mabini Street, Ermita, Manila, Philippines. (Photo credit: express000)
Gotinuan-led Filinvest Land Inc. has obtained the green light from the Securities and Exchange Commission to issue P11 billion worth of seven-year fixed-rate bonds.

The bonds will be issued in two tranches, the first in June and the balance in the third quarter.

FLI has tapped BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp. as joint issue managers.

The bond issue was assigned a PRS Aaa rating – the highest level on the ratings scale of credit issuer agency PhilRatings.

Proceeds from the offering will be used to partly fund FLI’s P15-billion capital expenditure program this year.

About P5.4 billion has been earmarked for the construction of medium-rise buildings (MRBs) in Metro Manila, Davao and Rizal. Another P3.8 billion has been set aside for the development of properties in Metro Manila, Cavite and Cebu. The rest will be spent for developing subdivisions, acquiring land and building high-rise projects.

FLI is rolling out P14.5 billion worth of projects this year, 20 percent higher than the previous level. These projects translate to over 12,000 units.

New projects include a condotel at Timberland Heights and two new MRB projects within Metro Manila.

Around P2.5 billion of this year’s capex would go to the construction of additional office and retail space.

http://www.philstar.com/Article.aspx?articleId=808345&publicationSubCategoryId=66

Stock News 2012: EEI profit jumps 81% to P215M in Q1

quezon city memorial circle (Photo credit: happy via)
Yuchengco-led construction firm EEI Corp. jacked up its net income by 81 percent in the first quarter this year to P215 million on higher revenues from work contracts.

In a financial report submitted to the Philippine Stock Exchange, EEI said consolidated revenues surged 94 percent to P3.27 billion, with construction contracts growing 89 percent to P2.48 billion.

Meanwhile, revenues generated from services more than doubled to P744.5 million.

During the period under review, EEI won P4.31 billion worth of contracts, which include the Novotel Manila Hotel of Araneta Center Hotel Inc. in Quezon City, Green Residences of SM Development Corp. in Manila, Eastwood LeGrand 3 of Megaworld in Quezon City, and the Levels condominium of Filinvest Land in Alabang, Muntinlupa.

The company also bagged contract packages of Didipio process plant for Oceana Gold Phils in Nueva Vizcaya, the asphalt plant facility for Petron and the autocalve installation works for the Taganito project in Surigao del Norte.

Under construction is the P2.84-billion Berth 6 of the Manila International Container Terminal. Under a joint venture with Hanjin Heavy Industries & Construction Co. for global port operator International Container Terminal Services (ICTSI).

Overseas, EEI’s 49-percent owned Al Rushaid Construction Co. Ltd. is currently building the Samco Acrylic under Samsung, the Saudi Aramco Manifa project, and the Saudi Aramco Mobil Refinery clean fuels project.

As of end-March this year, EEI’s domestic backlog, which represents portions of existing contracts that have yet to be completed for local construction projects, had a net selling price of P14.24 billion.

The combined backlog of all overseas projects amounted to an equivalent of P8.32 billion, making the total backlog of the company worth P22.56 billion. This is 15 percent lower than the total backlog in the same level in 2011.

EEI said the government’s declaration of a more aggressive pursuit of Public-Private Partnership (PPP) projects could provide good opportunities for growth in many industries which may directly impact the construction industry.

http://www.philstar.com/Article.aspx?articleId=808347&publicationSubCategoryId=66

Friday, May 18, 2012

Stock News 2012: First Gen to conclude buyout of joint venture partner this year

GE H series power generation gas turbine: in combined cycle configuration, this 480-megawatt unit has a rated thermal efficiency of 60%. (Photo credit: Wikipedia)
First Gen Corp., the power generation unit of the Lopez Group, said it hopes to conclude this year the buyout of its British partner in a natural gas power generation venture.

A full ownership of First Gas Power Corp. will increase the attributable generating capacity of the company, top company executives said yesterday.

“Hopefully we can conclude it soon,” said First Gen Corp. chairman and chief executive Federico R. Lopez. “Hopefully even within the first half.”

British Gas Group, which is publicly listed on the London and New York Stock Exchange, owns 40 percent of First Gas, with the majority stake held by First Gen.

First Gas owns and operates the 1,000-megawatt (MW) Santa Rita combined-cycle natural gas-fired power plant and the 500-MW San Lorenzo natural gas power plant, both in Batangas.

The 40-percent stake was worth $400 million in 2010.

The pricing, along with other terms and conditions, is currently being negotiated by both parties, First Gen chief finance officer Emmanuel Singson said.

“What is nice with it is if we come to a deal, it is just like acquiring another 600 MW but it will not contribute to caps [on generating capacity],” Lopez said.

The Energy Regulatory Commission sets the capacity limits of power generators based on the prescribed market share per grid and on a national level.

To date, First Gen and its units have a gross generating capacity of 2,763 MW, of which 1,500 MW is natural gas, 1,129 MW is geothermal and 134 MW is hydropower. It accounts for 18 percent of the country’s total installed power generation capacity.

Lopez said the company still has a leeway to increase capacity by another 1,700 MW.

http://www.philstar.com/Article.aspx?articleId=808343&publicationSubCategoryId=66

Stock News 2012: Globe's postpaid business sustains growth momentum in 1st qtr

The old Globe corporate logo. (Photo credit: Wikipedia)
Globe Telecom’s postpaid business sustained its growth momentum as it posted a 17 percent increase in service revenues to P748 million in the first quarter of the year, the company said in a statement.

Postpaid service revenues now accounts for 32 percent of Globe’s total mobile revenues, up from 29 percent compared to the same period last year, making it a key driver in the increase in service revenues for the period against the seasonally strong fourth quarter and has accelerated the overall growth of Globe’s mobile business.

Domestic voice calls, mobile browsing and international services are also higher year-on-year while direct mobile browsing revenues was at P669 million, up 33 percent year-on-year.

Globe said the robust take-up for postpaid plans was a result of the warm reception to the customizable plans that continue to attract new and old subscribers, alongside the success of the Apple iPhone 4S launch. In fact, for the first quarter, subscriber acquisition costs were higher due to strong demand for iPhone 4S.

“Investments in postpaid subsidies which are fully-funded by rise in revenues, set up the business for sustained top-line growth in 2012. The growth in customer volumes and handset subsidies are also driving the increase in total marketing and subsidy. We now have an improved customer mix with 45 percent of postpaid net additions signing up for the mid-to high-end plans from only 16 percent last year,” Globe president and CEO Ernest Cu said.

Total mobile revenues increased six percent year-on-year from P15.6 billion to about P16.6 billion despite intense competition and continued price pressures. Globe Prepaid and TM delivered combined a two percent revenue growth, driven by new brand campaigns and a boost in service offerings.

Globe Postpaid ended the quarter with 1.5 million subscribers, up 34 percent year-on-year while the combined Globe Prepaid and TM subscriber base has reached 29.5 million, 13 percent higher than 2011. As of March 31, Globe has a total of 31 million mobile subscribers, up 14 percent from the same period last year.

Amid the strong performance of its mobile business, Globe still further pushed efforts for its prepaid and TM services in a bid to keep its loyal subscribers and draw new customers.

http://www.philstar.com/Article.aspx?articleId=807661&publicationSubCategoryId=66

Stock News 2012: First Gen looks to triple profit

Inauguration of the new Yerevan natural gas-fired thermal power plant Հայերեն: Նախագահ Սերժ Սարգսյանը ապրիլի 21-ին ներկա է գտնվել Երեւանի համակցված շոգեգազային ցիկլով էլեկտրակայանի բացման արարողությանը: (Photo credit: Wikipedia)
First Gen Corp., the power generation firm of the Lopez Group, is looking at a three-fold growth in profit this year, driven by higher electricity sales from its subsidiaries.

The energy firm is ready to invest in new projects and expand its ownership in existing units, its top executives said.

“We are already in triple-digit growth...I think this year we will be able to continue that momentum,” said First Gen president and chief operating officer Francis Giles B. Puno.

For the first quarter alone, the company already posted a 171-percent jump in profit to $52.1 million from $19.2 million a year ago.

Puno added that the company is targeting to triple its earnings this year, from $35 million last year.

“Analysts’ consensus is around $110 million [in net income],” First Gen executive vice-president Richard B. Tantoco said.

“That is driven by improved electricity revenues from Energy Development Corp. (EDC) and ancillary services from First Gen Hydro [Power Corp.],” Puno said.

First Gen’s net income slumped to $35 million last year from $70.2 million in the previous year amid lower income contribution from unit EDC.

Puno said that as EDC improves the operating performance of its power plants, electricity output and sales will grow.

To date, First Gen and its units have a gross generating capacity of 2,763 megawatts (MW), of which 1,500 MW is natural gas, 1,129 MW is geothermal and 134 MW is hydropower. It accounts for 18 percent of the country’s total installed power generation capacity.

Fresh funds are geared towards acquisitions, Puno said. The company has recently raised P10 billion from the sale of its perpetual preferred shares.

Specifically, Puno said the company is still interested to purchase the stake of British Gas Group in First Gas Power Corp. First Gas owns and operates the 1,000-MW Santa Rita combined-cycle natural gas-fired power plant and the 500-MW San Lorenzo natural gas power plant, both in Batangas.

For new projects, Puno said First Gen is ready to spend P16 billion for 91 MW of new generating capacity through wind and hydropower projects.

In the first quarter, First Gen’s consolidated revenues climbed 23.1 percent to $390.6 million from $317.3 million due to improved share in net earnings of its affiliates.

http://www.philstar.com/Article.aspx?articleId=807660&publicationSubCategoryId=66

Thursday, May 17, 2012

Stock News 2012: Jollibee profit up 8%

Jollibee! (Photo credit: swilkes)
Fastfood giant Jollibee Foods Corp. (JFC) posted a net income of P672 million in the first quarter this year, up 8.1 percent from the previous level on strong sales growth of all brands and network expansion.

In a disclosure to the Philippine Stock Exchange, JFC said system-wide sales, a measure of all sales to consumers, both company-owned and franchised stores, climbed 15 percent to P21.55 billion on the strength its local brands.

JFC said its restaurants continued to experience very healthy same-store sales growth from increases in volume resulting from more customers. This was attributed to new products, improving services, a slight reduction in prices, and the decreasing inflation rate.

JFC said its foreign business registered a 20.5 percent growth in system-wide sales, with China operations growing 26.9 percent, Southeast Asia and the Middle East 22.6 percent, and the US 6.9 percent.

Revenues amounted to P16.49 billion, 18 percent higher than the 2011 figure of P13.97 billion.

JFC chief financial officer Ysmael Y. Baysa said the strong Philippine operations were partially offset by lower China profit margins as labor and rent expenses outpaced sales growth.

The first quarter profit also reflected the financial results of SuperFoods, a joint venture based in Vietnam of which JFC owns 50 percent, with Highlands Coffee and Pho 24 Vietnamese noodles as primary businesses.

Using the equity method of accounting, the P23.1 million equity in net losses of SuperFoods sliced JFC’s consolidated net income by 3.7 percent.

The group opened 39 new stores in the first quarter, 26 of which are in the Philippines and 13 overseas.

This brings the group’s total restaurant network to 2,513 worldwide as of end-March 2012. Of the total, 2004 are located in the Philippines (Jollibee 752, Chowking 381, Greenwich 204, Red Ribbon 207, Mang Inasal 436 and Burger King 24).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=807323

Stock News 2012: Meralco says customers to see lower bills

Jollibee mascot (Photo credit: Wikipedia)
fast food chains in the world” in its May 2012 issue.

The homegrown fastfood chain made it to the list alongside England’s Pret a Manger, Russia’s Teremok, Taiwan’s Din Tai Fung, Puerto Rico’s El Mason Sandwiches, Japan’s Ippudo, Australia’s Chocolateria San Churro, and Brazil’s Giraffas, among others.

“Fastfood gets a Filipino twist at this quick-serve chain, which is so beloved that its mascots star in their own children’s television show,” said author Jamie Feldmar in the article.

“There are more than 700 locations across the country, serving anything from fried chicken and hamburgers to local favorites like palabok, rice noodles with meat sauce, shrimp and hard-boiled egg.”

Feldmar also recommends the “Spicy Chickenjoy, fried chicken coated with chili powder” to first-time diners.

Apart from Chickenjoy, Jollibee also became a household name in the Philippines for its Jolly Spaghetti, Palabok Fiesta, Yumburger, and Peach Mango Pie, among other treats.

Starting as a two-branch ice cream parlor in 1975, it grew into what is now the largest and most popular fast food chain in the country.

Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 750 stores.

http://www.philstar.com/Article.aspx?articleId=807758&publicationSubCategoryId=63

Wednesday, May 16, 2012

Stock News 2012: Vista Land's Q1 income up 22% to P1.06 billion

Villar-led homebuilder Vista Land & Lifescapes Inc. said its first quarter net income grew 22 percent this year to P1.06 billion, fueled by pent-up demand in the residential market.

In a briefing yesterday, Vista Land chief financial officer Ricardo B. Tan Jr. said sales activity remained brisk with the continued low interest rates and steady remittance inflows from Filipinos working overseas.

Revenues rose 23 percent to P4.02 billion as reservation sales surged 52 percent to P10.14 billion. Subsidiaries Camella and Communities Philippines, which develop residential communities for the low and affordable segment, accounted for a combined 67 percent of Vista Land’s total revenues.

“The company’s performance for the first quarter was slightly better than expected. We are off to a good start and are on track to achieve our full year targets for 2012, “ Tan said.

Tan earlier said the company was looking to end the year with a 20 percent growth in earnings and revenues to around P4.2 billion and P16 billion, respectively.

“The market has been pretty resilient. While competition has been intensifying from other players, we feel that we have the advantage over them. We know the market better than anyone else,” Tan said.

Manuel Paolo Villar, president and chief executive officer of Vista Land, said the company has not seen any negative effects from the problems besetting Europe as it continued to attract OFWs.

“Camella continues to dominate the housing market nationwide, and as we execute our strategy of aggressively expanding in the provinces, our position as the dominant player in housing will be solidified even further,” Villar added.

The company introduced nine major subdivision projects during the period under review worth around P5 billion, Tan said.

Stock News 2012: JG Summit profit soars 77% to P4.91 billion

Universal Robina (Photo credit: Wikipedia)
JG Summit Holdings Inc., the investment vehicle of taipan John Gokongwei, said its net earnings grew 76.7 percent in the first quarter to P4.91 billion, boosted by a dividend income from its investment in Philippine Long Distance Telephone Co. (PLDT) as well as higher mark-to-market gains.

Consolidated revenues went up 13.9 percent to P33.48 billion, mainly driven by the strong performance across all business units, the company said in a statement.

The food business contributed P18.2 billion to total revenues, up from P16.74 billion. The airline business, through Cebu Pacific, chipped in P9.34 billion while property pumped in P3.35 billion. Petrochemicals contributed P1.38 billion while banking pitched in P709.96 million.

Dividend income from its PLDT investment amounted to P1.9 billion.

Core earnings before tax increased 49.9 percent to P5.89 billion while the group’s EBITDA (earnings before interest, taxes, depreciation and amortization) was flat at P6.48 billion.

Equity in net earnings of associates amounted to P499.76 million, down 5.6 percent from the previous level due to reduced income from the group’s investment in UIC Ltd.

Consolidated cost of sales and services climbed 17 percent P23.77 billion due to higher aviation fuel expenses incurred by its airline business.

However, the company booked P680.28 million in gains from its investment in the capital market, 51.9 percent higher than the previous level.

Food manufacturing arm Universal Robina Corp. reported a 36.5 percent growth in net income for the first half of its fiscal year ending September to P4.48 billion. Net sales improved 6.6 percent to P35.487 billion.

URC’s branded consumer foods (BCF) segment, including the packaging division, registered sales of P28.029 billion, up 13.1 percent. Of the total, the domestic foods business grew faster at 13.7 percent to P16.59 billion, largely driven by the be-verage division which jumped 41.5 percent on account of strong sales acceptance for its new product, Great Taste White Coffee.

For the snack foods division, snacks and biscuits exhibited double-digit growth.

http://www.philstar.com/Article.aspx?articleId=807650&publicationSubCategoryId=66

Tuesday, May 15, 2012

Stock News 2012: GT Capital's Q1 profit soars 50%

Extract from the text of the original document: "figure shows the fraction of gross domestic product (GDP) devoted to health care in a number of developed countries in 2006. According to the Organization for Economic Cooperation and Development (OECD), the United States spent 15.3 percent of its GDP on health care in 2006. The next highest country was Switzerland, with 11.3 percent. In most other high-income countries, the share was less than 10 percent." (Photo credit: Wikipedia)
GT Capital Holdings, the investment vehicle for the various business interests of the Ty family, has reported a 50.5 percent increase in its net earnings for the first three months of 2012 to P1.3 billion, spurred by growth across all component companies.

In a statement, GT Capital president Carmelo ML. Bautista said the strong growth performance mirrors the consumption-driven growth of the domestic economy.

“GT Capital’s component companies are already market leaders in their respective sectors and therefore have the strategic advantage with gross domestic product (GDP) growth expected at five percent or better,” he said.

Real estate unit Federal Land Inc. showed major improvement in its sales revenue as net income grew to P110 million, up 123 percent compared to last year.

Despite the strong Japanese yen, vehicle manufacturing arm Toyota Motors Philippines increased its sales by seven percent, boosting its market share to 38 percent, with a net income of P673 million as of end-March.

Top leader Metropolitan Bank & Trust Co. (Metrobank) reported a 40-percent income growth versus the same period last year to P4.3 billion attributed to the higher than expected growth of its loan book by 18 percent, and higher earnings across its core lending, treasury and investment and fee-based business.

Insurance unit AXA Philippines’ net income grew 25 percent for the first three months of 2012 to P164 million.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=807317

Monday, May 14, 2012

Stock News 2012: ABS-CBN income falls 69% to P306 million in Q1

Logo for ABS–CBN Corporation (Photo credit: Wikipedia)
Multi-media conglomerate ABS-CBN Corp. said its net profit declined 69 percent in the first quarter this year to P306 million, from P976 million a year ago when it booked gains from the sale unit of Sky Cable’s Philippine Depositary Receipts (PDRs).

Stripping the one-time gain of P674 million in 2011, however, ABS-CBN’s net income would have been up one percent on a recurring basis, the company said.

Consolidated revenues rose eight percent to P7.1 billion, 59 percent of which or P4.2 billion came from advertising.

Advertising revenues across all platforms and subsidiaries went up four percent to P4.2 billion.

But earnings before interest, taxes, depreciation and amortization (EBITDA) fell 35 percent to P1.4 billion.

Consumer sales climbed 15 percent to almost P3 billion, largely driven by the 12 percent growth in Sky Cable’s revenues owing to the nine percent rise in postpaid service and 31 percent hike in broadband service revenues.

Revenues from its international unit, ABS-CBN Global, improved three percent on the back of a three percent rise in overall viewer count to around 2.5 million as of end-March this year. Double-digit growth in subscribers continued to be experienced in Canada, and singledigit growth in all other territories except Japan and Europe where subscribers declined.

ABS-CBN maintained its national audience share and ratings leadership with prime-time audience share averaging 42 percent during the period under review, with a 12 percentage point lead over main rival GMA’s, according to Kantar national TV ratings data.

Total operating and other expenses jumped by 27 percent to P6.1 billion. Production costs increased 10 percent to P2.5 billion

The company has earmarked around P5 billion for its capital expenditure program this year, majority of which or P2 billion will go to the continued expansion of the broadband business. Around P1.2 billion will be channeled to flagship station Channel 2.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=807032

Sunday, May 13, 2012

Stock News 2012: Smartphones power surge in mobile Internet use

Image of Samsung i5700 Galaxy Spica mobile phone (Photo credit: Wikipedia)
Mobile Internet usage in the Philippines is growing rapidly, due to a surge in attractive smartphone offers bundled with mobile data, a top telecom executive said.

First quarter mobile Internet revenues of leading wireless operator Smart Communications, for example, rose 71 percent, as reported by parent company Philippine Long Distance Telephone Co. (PLDT).

According to Smart chief wireless advisor Orlando Vea, the explosive increase in mobile Internet usage among Smart’s subscribers was driven in the first quarter mainly by a “solid portfolio of postpaid data plans bundled with best-in-class smartphones”.

Smart launched in the first quarter its limited-edition Data Plan 1000, which bundled free calls, SMS and mobile Internet, with a choice from a slew of ‘power’ smartphones from all the top manufacturers, at discounted and amortized prices.

These developments follow the rapid growth of the worldwide smartphone market.

According to the International Data Corp. (IDC) Worldwide Quarterly Mobile Phone Tracker released last week, the worldwide smartphone market grew 42.5 percent year-on-year in the first quarter of 2012.

The report also cited manufacturers such as Samsung, Apple, Nokia, Research in Motion, and HTC shipping an estimated 144.9 million smartphones just within the period.

Banking on the massive popularity of smartphones, Smart is further stepping up efforts to promote smartphone adoption and usage. The telco leader is set to offer the hotly-anticipated, third-generation Samsung Galaxy S III.

Samsung, which moved 42.2 million smartphones and made a new record for the most number of smartphones shipped in a single quarter according to the IDC report, pumped the Galaxy S III’s superior hardware with intuitive technology.

It features a 4.8-inch HD Super AMOLED display, an 8-MP camera and a 1.9-MP front camera, and a host of other features, powered by a snappy Quad Core Processor and Android 4.0 (Ice Cream Sandwich) for its OS.

Among its unique features are ‘Smart Stay’, which tracks the user’s eyes, so as long as they are looking at it, the display won’t dim or turn off. Another feature is called ‘Pop Up Play’, which allows the user to play stored videos in a window on any homescreen, while they are writing a text message, email, playing games or while using virtually any other mobile application.

The Samsung Galaxy S III will be available from Smart bundled with Unli Data Plans that all come with unlimited mobile Internet, plus free SMS and call minutes. The device will also be available under Smart’s All-In Plans. Pre-orders will be accepted starting May 23, 2012, via www.smart.com.ph/galaxys3.

“We are very excited that Smart subscribers will be among the first to enjoy our flagship device Samsung Galaxy S III, and benefit greatlyfrom its superior hardware and enhanced smartphone usability,” according to Michael Cheon, business advisor for Samsung Electronics Philippines Corp.

With advanced, always-connected smartphones such as the Samsung Galaxy S III rapidly gaining popularity among Filipino users, Smart expectsmobile Internet to remain a bright spot for the company.

http://www.philstar.com/Article.aspx?articleId=806339&publicationSubCategoryId=66

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