Philippine Business News

Cebu Pacific Bullish about North Asia expansion

2011-05-02T01:00:00.000+08:00

The Philippines’ largest national flag carrier, Cebu Pacific (PSE:CEB) remains optimistic about expansion in North Asia, especially with a passenger growth of 28% for its Greater China, Taiwan, Japan and South Korea routes in the 1st quarter (Q1) of 2011.

CEB flew a total of 381,513 passengers between North Asia and the Philippines in Q1 2011, compared to 298,485 passengers in Q1 2010.

Its Q1 2011 passenger figures went up 73% in Taiwan, 30% in Japan, 31% in South Korea and 23% in Greater China, compared to the same period last year.

“CEB offers the lowest fares in all its routes, and North Asia is no exception. We currently operate 73 weekly flights to Greater China, 7 weekly flights to Taipei, thrice weekly flights to Osaka in Japan and 18 weekly flights to South Korea,” said CEB VP for Marketing and Distribution Candice Iyog.

“The airline is already set to launch its four times weekly Manila-Pusan flights on June 15, 2011, and is hopeful its applications to Japan will be approved to enable it to expand to cities such as Nagoya and Tokyo in the near future. CEB also plans to increase flights to Beijing and Guangzhou to accommodate passenger demand,” she added.

Meanwhile, CEB holds a North Asia seat sale from April 28-30, 2011 or until seats last, for travel from June 1 to August 31, 2011.

P1,499 seats are available for those going from Manila to Guangzhou and Taipei. Manila-Beijing and Manila-Shanghai seats are also up for grabs for P1,999.

Those traveling from Manila to Osaka, Busan and Incheon (Seoul), and Cebu to Busan and Incheon (Seoul) can also avail of P2,999 seats. These seat sale Lite Fares are up to 57% lower than CEB’s year-round fares for these routes.

The latest seat sales and promos can also be found on CEB’s official Twitter and Facebook pages. CEB operates the most number of routes and flights in the Philippines, using the youngest aircraft fleet in the country. This is composed of 10 Airbus A319, 15 Airbus A320 and 8 ATR-72 500 aircraft. By the end of 2011, CEB will be operating a fleet of 37 aircraft – with an average age of 3.5 years – one of the most modern aircraft fleets in the world. Between 2012 and 2014, Cebu Pacific will take an additional 16 Airbus A320 aircraft.

SM Declares Cash Dividends

2011-05-02T00:56:00.000+08:00

(27 April 2011. Pasay City, Philippines.) Philippine conglomerate SM Investments Corporation (SM) announced during its annual stockholders’ meeting that the company’s board of directors approved the declaration of a PHP 9.04 cash dividend per share worth PHP 5.5 billion. This represents 30% of SM’s full-year 2010 net income of PHP 18.4 billion. SM stockholders of record as of 27 May 2011 are entitled to the cash dividends, which will be paid on 22 June 2011.

SM president Mr. Harley T. Sy said, "SM’s cash dividend declaration comes with our sincere gratitude to all our shareholders. Their support and confidence in our company enabled us to deliver better-than-expected results in 2010. We look forward to their continued patronage in the years to come."

SM and its subsidiaries garnered in March 2011 multiple honors for corporate governance and investor relations. The honors were given by two prestigious business publications namely Corporate Governance Asia and Alpha Southeast Asia under their respective and separate awards programs. Earlier this year, SM also won for the second straight time the Platinum Corporate Award 2010 given by The Asset magazine in Hong Kong for all-around excellence in management, financial performance, corporate governance, social responsibility, environmental
responsibility, and investor relations.

PETRON CORPORATION UNVEILS MAJOR REFINERY EXPANSION PLAN

2011-04-14T10:11:00.000+08:00

April 6, 2011. The country’s leading oil refining and marketing company Petron Corporation recently unveiled its Refinery Expansion Project (RMP-2) to meet the fast-changing energy needs of the Philippines. The announcement was made during the commemoration of Petron Bataan Refinery’s (PBR) 50th anniversary. The project - the company’s biggest and most ambitious investment to date - is targeted for completion towards the end of 2014.

Petron Chairman and CEO Ramon S. Ang said
“The decision to undertake this massive project was borne out of the vision to make Petron Bataan Refinery among the best in Asia.”

“From a national perspective, this major investment underscores our belief in the country’s prospects and our strong commitment to significantly contribute to nation-building.”

RMP-2 will further enhance the country’s supply security, increase Petron’s capability to supply the increasing demand for white products (LPG, gasoline, and diesel) and petrochemicals.

Once completed, RMP-2 will enable Petron’s Bataan Refinery to “digest” a wider range of crude oils including from African sources, giving it greater flexibility to source cost-efficient crude types from any part of the world. Petron’s operational efficiency will also significantly improve since the project allows the full “conversion” of all remaining black streams into high-margin white products and petrochemicals. This means that the company can run its refinery 100% without incurring penalties from producing low-value fuel oil. For instance, the project will increase current propylene production by nearly 200%. The project doubles Petron’s refining complexity, enabling it to compete more effectively with refineries in the Asia-Pacific region. Another benefit from RMP-2 is the local production of fuels that meet the global clean air standard of the future - Euro 5, further improving air quality in the country.

Petron will partner with leading global technology and engineering companies focused on refining and petrochemical production namely Axens, UOP, CBI Lummus, Foster Wheeler, and Daelim.

Ang added
“The RMP-2 project supports Petron’s strategic initiatives namely our retail network expansion program, the integration of our petrochemicals business, and increasing our presence in the export market. These are aimed at ensuring its growth momentum over the long-term.”

As of end 2010, the company already has over 1,700 service stations - by far the largest in the country. The country’s fuel demand is expected to increase as the economy continues to grow.

SMDC Lists Additional 1.87 Billion Shares

2010-11-03T12:32:00.001+08:00

SM Development Corporation (SMDC) listed an additional 1.83 billion of its common shares at the Philippine Stock Exchange on Nov 3, 2010 . The shares were from the highly successful P11.7 billion stock rights offering held October 18-22, 2010. Each SMDC shareholder holding at least three common shares as of October 6, 2010 was offered and entitled to subscribe to one new share at an offer price of PHP 6.38 per share. The additional listed common shares have a par value of PHP 1.0 per share and BDO Capital and Investment Corporation acted as the sole underwriter of the offer.

SMDC’s stock rights offer was fully subscribed. Initially, the company will receive 50% of the total proceeds from the offer equivalent to PHP 5.8 billion and the other 50% on or before end of May 2011. Prior to this second rights offering, SMDC has a total of 5.5 billion common shares issued and outstanding. After the completion of the offer, the company’s common outstanding shares will top 7.3 billion.

“We are highly encouraged by the strong market reception and support of the Company’s latest stock rights offering, after the first rights offering. This second stock rights offering comes on the heels of the very successful first rights offering totalling PHP 5.0 billion held early this year, and the PHP 10.0 billion note issuance in June -- a clear manifestation of trust and confidence investors and other stakeholders have on the positive prospects of the company,” said SMDC vice chairman and chief executive officer Henry Sy, Jr.

The net proceeds will be used by SMDC for land acquisition, project development, and construction activities.
The additional resources raised through this new initiative will ensure the continuity of SMDC’s excellent product offerings in the housing and financial markets. Likewise, this capital raising activity will further strengthen the financial backbone of the Company and provide it with the needed muscle to tap bigger and promising markets in the region such as China.

For further information, please contact:

Mr. Jose T. Gabionza
Vice President
SM Development Corporation
E-mail: jose.gabionza@smdevelopment.com
Tel. No. 857-0100

Source

SMDC disclosure to PSE

Nov 3, 2010

PHILWEB Posts Record Growth

2010-11-03T12:22:00.000+08:00

PhilWeb Corporation, posted net income of P477 million for the first three quarters of 2010, 28% higher than the P373 million it posted for the same period in 2009. Revenues totaled P755 million, up 30% year on year, compared to P580 million in the first nine months of 2009.

PhilWeb Corporation is the Philippines’ first and largest listed online technology firm and leader in online gaming.

"We are particularly pleased with our third quarter results, as it shows that our core businesses remain robust," PhilWeb president Dennis Valdes said.

Valdes said the Philweb remitted a total of P921 million to PAGCOR through the 3rd quarter of 2010, representing the 60% PAGCOR share in the e-Games Internet Cafe and Internet Sports Betting Station businesses. He noted that the PAGCOR share for these businesses come with no capital expenditures or operating expenses on their part, thus the total remittance flows directly to the PAGCOR bottom line.

Remittances through October 31st have reached Ph1.1 billion. "We expect to remit over P1.3 billion to PAGCOR for 2010," stressed Valdes.

"We are also pleased with our businesses' performance at the start of the fourth quarter this year, which show continued growth. Thus, we remain confident that 2010 will be a record year for PhilWeb, both in terms of revenues and net income," said Valdes.

Source:

Philweb disclosure to PSE

October 29, 2010

SM City Novaliches Opens to Public!

2010-10-21T11:48:00.003+08:00

SM City Novaliches opened to the public on Friday, 22 October 2010. The new 60,334 sqm mall Located along Quirino Highway in Barangay San Bartolome, Novaliches, Quezon City.

It is SM Prime Holdings, Inc.'s 40th mall in the Philippines, its third mall in the
city, after SM City Fairview and SM City North Edsa. The new mall is estimated to have provided up to 4,000 new jobs.

SM Prime President Mr. Hans T. Sy said, “We warmly welcome all our valued customers to our newest and 40th mall, SM City Novaliches. The area of Quezon City continues to be a key expansion area for SM malls. This reinforces our confidence in the prospects of Quezon City given its vibrant population and burgeoning business sector.”

SM City Novaliches has a leasable area of 42,721 sqm. The mall’s anchor tenants are SM Supermarket, SM Department Store, SM Appliance Center, Ace Hardware, BDO, and Watsons. Other tenants include quick service restaurants Jollibee, KFC, McDonald’s, Mang Inasal, Shakey’s, and Pizza Hut; fashion and apparel retailers Bench, Penshoppe, Human, and Folded N Hung; and health and beauty salons Let’s Face It, Davids, Ricky Reyes, and GQ Barber, among others.

SM City Novaliches has a 500-seat food court, parking for over 1,200 vehicles, and a terminal for public utility vehicles. SM Prime malls in the Philippines command a total of 4.8 million sqm of mall space.

Source: PSE Disclosure
Oct 21, 2010

SM Prime to Open SM City Calamba

2010-10-19T11:46:00.003+08:00

The Philippines’ dominant mall developer and operator, SM Prime Holdings, Inc. (SM Prime), opened SM City Calamba October 15, 2010. SM's 39th shopping mall in the country and its third in the province of Laguna, after SM City Sta. Rosa and SM City San Pablo, SM City Calamba has a gross floor area of 66,516 square meters (sqm) and occupies 55,102 sqm of land.

The new mall’s anchor tenants are SM Supermarket, SM Department Store, SM Appliance Center, Ace Hardware, BDO, and Watsons. Other mall tenants include Jollibee, McDonald’s, KFC, Red Ribbon, Bench, Penshoppe, and National Bookstore. SM City Calamba, with a leasable area of 44,740 sqm, also offers a business center, a Cyberzone, and a food court that comfortably seats up to 340 diners. The mall has four cinemas with a combined seating capacity of about 1,200 and parking slots for over 300 vehicles.

SM Prime President Mr. Hans T. Sy said, “We are pleased to open the doors of our newest shopping mall, SM City Calamba. It is SM’s third mall in Laguna, a clear testament to the robust progress and development that the province has sustained. Laguna offers a large and diverse market driven by trade and tourism. SM is here to fully support the growth of this beautiful and very promising province.”

SM City Calamba followed the opening this year of SM City Tarlac and SM City San Pablo. With 39 malls all over the country, SM Prime has developed a combined GFA of 4.8 million sqm. Before the year ends, the company is set to open SM City Novaliches in Quezon City and its fourth mall in mainland China, which will be located in the city of Suzhou.

Source PSE Disclosure
October 14, 2010

Green Core allocates 40 MW of clean & affordable power to Visayas

2010-10-13T09:34:00.006+08:00

Green Core Geothermal, Inc. (GCGI), a subsidiary of geothermal leader Energy
Development Corporation (EDC), will ensure that the provinces of Capiz, Iloilo and Aklan benefit from clean and affordable power for the next 12 years. The contract between GCGI and the Iloilo Electric Cooperative (ILECO 1), Aklan Electric Cooperative (AKELCO) and Capiz Electric Cooperative (CAPELCO) guarantee long-term power supply for both residential and industrial customers of the three cooperatives.

Based on the contracts, GCGI will supply AKELCO with 18 MW for 2010 and 10 MW from 2011 to 2020. AKELCO services 17 municipalities in Aklan and two municipalities in Antique. ILECO 1, on the other hand, is assured of 3 MW from 2010 to 2012 and 18 MW from 2012-2022. ILECO 1’s franchise areas cover 15 municipalities. CAPELCO, meanwhile, will get 12 MW for the next 10 years to energize 17 cities and municipalities in Capiz.

Power will come from the 112.5-MW Tongonan 1 in Leyte and 192.5-MW Palinpinon plants in Negros Oriental which GCGI won in a bidding by PSALM last year.

The officers of the three cooperatives are one in saying that geothermal is the best option for them. “We’re very happy with this deal primarily because of the low rates of geothermal compared with other sources. It’s good that we get 70 percent of our supply from GCGI’s geothermal plants and only 30 percent from more expensive sources. We are able to provide both our residential and industrial customers with clean, stable and affordable power,” CAPELCO general manager Edgar Diaz said.

EDC President and COO Richard Tantoco reiterated that the pricing of indigenous renewable energy resource such as geothermal is not only independent of any indexation to movements in global energy indices but is also VAT zero rated.

Hence, ILECO 1 General Manager Wilfred Billena is confident that the contracts “will also result in lower power rates for us in Iloilo.” AKELCO General Manager Chito Peralta likewise expressed satisfaction with the agreement. “Getting power has always been a challenge for us because as you know, Aklan is located at the tip of the grid. Now Green Core will be able to augment the power supply of the province and encourage more tourists to visit Boracay.”

“We’re very glad to have ILECO 1, CAPELCO and AKELCO as partners in delivering cleanenergy to Iloilo and Aklan. EDC’s long-term contracts with them will support the growth needs of their respective provinces and customers with clean, reliable and affordable power. Since the industry is leaning more towards clean energy, EDC, with its 34-year head start in the geothermal business, is well positioned to address the supply shortage in the Visayas grid,” Tantoco said.

Source: PSE Disclosure Sept 30, 2010

Philippine Internet Metrics

2010-03-31T11:39:00.003+08:00

Michael Alan Hamlin, managing director of TeamAsia, wrote in a Manila Bulletin article about Philippine Internet metrics. Highlights:

The Philippines, Vietnam, and Indonesia will account for almost 90% of growth in online ad spend in Southeast Asia in the next five years
The value of online advertising in the Philippines is expected to reach P1 billion this year
80% of an estimated population of 98 million – equivalent to some 72 million individuals – use mobile phones.
The Philippines has the sixth highest number of mobile phone subscribers in Asia Pacific
Filipinos send two billion SMS messages a day, more than anywhere else in the world
Mobile telephony has clearly been embraced by economically challenged socioeconomic classes as an affordable and reliable way to interact with family and friends.
Internet users – estimated at between 24 and 35 million – are disproportionately young, single, and surprisingly, poor.
over 70% of Philippine Internet users go online at Internet cafés.
35% of Filipinos living in Cagayan de Oro accessed the Internet in the past month at the time of the survey.

Full story at Philippine Internet by the Numbers

PLDT Expands Network, Increases Capacity, Enhances resiliency

2010-03-02T01:14:00.005+08:00

Philippine Long Distance Telephone Co. (PLDT) announced completion of another phase of its Digital Fiber Optic Network (DFON) expansion program. PLDT recently activated an additional 320 Gbps across six network loops nationwide to serve the rising demand for bandwidth as more customers increase their usage of broadband Internet and multi-media services. This increased the operating capacity of PLDT's DFON to more than 1,000 Gbps at a total cost of P600 million.

PLDT has also embarked on a P2.6B DFON network fortification program through establishment of loops within the loops to enhance network resiliency to protect the existing businesses of PLDT and to drive new businesses nationwide.

To date, PLDT already completed the third fiber optic cable leg to Baguio while the 1,220 Km third fiber optic cable leg between Lucena and Cebu traversing through Bicol, Masbate, Panay and Negros islands is expected to be completed middle of this year.

PLDT President and CEO Napoleon Nazareno said:
"We are adding capacity to serve the fast growing needs of our customers for bandwidth. We are improving resiliency to ensure uninterrupted service, and adding density so that the network will be able to serve more communities in its footprint. These projects will spur growth in local economies by making these locations more attractive investment areas, especially for Business Process Outsourcing (BPO) locators. Moreover, this will expand broadband coverage so that more Filipinos including those in the rural areas can connect to the world through the Internet."

PLDT Customer Service and Marketing Group Head and SVP Eric Alberto noted that the completion of the latest DFON expansion program will strengthen PLDT's leadership in the increasingly competitive broadband market.

Alberto said:
"Our superior backbone network will enable us to offer our customers the best possible user experience of broadband, particularly in such high-bandwidth services such as video and multimedia."

He added that PLDT's fiber optic transport network is augmented by the nationwide terrestial microwave backbone being operated by SMART.

With a total capacity of more than 120Gbps, SMART's microwave network is utilized to reach remote areas -- such as Tawi-twai in the South to Batanes in the North. On the West sode, it reaches Palawan from Batangas in Luzon and from Panay Island in Visayas. Bohol is also reached through multiple routes of SDH radio going to Cebu.

Aside from serving as an aggregate note to carry traffic to the nearest fiber optic node, microwave radios are also used as alternate routes for the crtical circuits passing through the major fiber-optic networks. Major backbone areas with both high-capacity fiber optics and high capacity microwave network covers Regions 1 and 2, Baguio to Bulacan, Bicol Regions, Panay to Negros to Cebu islands, Zamboanga to Ozamis and Cagayan de Oro to Davao up to Gen. Santos City.

These microware networks complement the higher capacity fiber-optic networks and are vital in delivering reliable SMART services across the country.

Source: PLDT Press Release Feb 25, 2010

Maynilad steps up projects and operations for El Nino

2010-02-23T11:14:00.004+08:00

Maynilad is fast tracking key projects in its concession area's water supply to manage the effects of El Niño.

Maynilad intensified operations by increasing its teams of deployed engineers and contractors from 30 to over 90. This will enable recovery of around 40 million liters per day (MLD) of water, to partially offset the reductions in its raw water supply due to El Niño.

Maynilad is completing its Putatan Water Treatment Plant, which is scheduled to produce an initial 50 million liters of water per day (MLD) by May. The state-of-the-art treatment plant uses a multi-stage process of Dissolved Air Flotation (DAF), Microfiltration, Reverse Osmosis and Chlorination to ensure that the water from Laguna Lake passes the Department of Health (DOH)-issued Philippine National Standards for Drinking Water (PNSDW).

The West Zone concessionaire is working on the commissioning of its new Villamor pumping station by April. The Villamor facility has a reservoir that can store up to 10 million liters of water. It also has the capacity to pump water to the high areas in the southern portion of Maynilad’s concession area. In effect, the company can store water during off-peak hours and then pump the supply when customer demand is higher.

Maynilad serves over 7 million customers in Metro Manila and parts of Cavite. Its concession area includes the cities of Manila (excep portions of San Andres & Sta Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Hi-way), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila, and the municipalities of Bacoor, Imus, Kawit, Noveleta and Rosario in Cavite Province

Source: Maynilad Press Release Feb 20, 2010

Maynilad undertakes massive leak repair program

2010-02-10T11:21:00.004+08:00

In preparation for the long dry season, Maynilad is undertaking a massive leak repair program to lessen the effects of reduced rainfall on Metro Manila’s water supply. Maynilad earlier received a memorandum from President Gloria Macapagal Arroyo directing the Department of Public Works and Highways (DPWH), Department of Interior and Local Government (DILG), and the Metro Manila Development Authority (MMDA) to implement a 60-day suspension of all
regulations, ordinances, or other issuances that would restrict or prohibit the Metropolitan Waterworks and Sewerage System (MWSS) and its concessionaires from conducting leak repairs.

With this directive, the water concessionaire can undertake a massive leak repair program to avert water shortage in Metro Manila and nearby areas. Maynilad is prepared to spend around P314 million on the said program which will address not only the simple vertical leaks (those involving customer meter assemblies) but also the leaks found along the company’s primary lines.

At the start of this year, Maynilad tallied a total of 2,965 leaks to be repaired, while receiving an average of 105 leak reports per day. The water company has a team of leak detection engineers and 30 contractors that will address water leaks in the West Zone.

After completion, the repair works are estimated to save as much as 40 million liters of water per day. Maynilad’s concession area covers the cities of Manila (all but portions of San Andres & Sta Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional, Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit & Batasan Hills), Makati (west of South Super Hiway), Caloocan, Pasay, Paranaque, Las Pinas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; Cavite City, and the towns of Bacoor, Imus, Kawit, Noveleta and Rosario, all in Cavite Province.

To report pipe leaks and illegal connections in these areas, the public may call Maynilad Hotline 1626. The number is available 24/7.

Source: PSE Disclosure: Feb 8, 2010

Philweb

2010-02-10T11:04:00.003+08:00

In a disclosure to the Philippine Stock Exchange, PhilWeb Corp.(PSE:WEB), the country’s first listed online technology firm, confirmed that it set up a P1billion company that will operate mobile lottery games as part of a strategy to expand horizons.

Cliburn Anthony A. Orbe, WEB Chief Information officer confirmed, the new firm, PhilWeb Mobile Lottery Corp., was granted a certificate of incorporation by the Securities and Exchange Commission (SEC). Its primary purpose is to operate either alone or in partnership with others mobile based lottery games and other related mobile game
offerings.

SM to build 36 OFW Global Pinoy Centers

2009-12-11T16:22:00.004+08:00

Business Mirror reported today that SM group will build 36 Global Pinoy Centers, or OFW lounge facilities to attract overseas Filipino workers (OFWs) and their families to SM Supermalls. Hans Sy, president of SM Prime Holdings Inc., confirmed the Business Mirror report in a disclosure to the Philippine Stock Exchange.

The Global Pinoy Centers are intended to meet the needs of returning OFWs and their dependents when they go shopping.

Sy said providing OFWs and their families with more comfortable facilities is SM’s way of recognizing their contribution to SM’s growth through their continued patronage.

Sy said: 'Whenever I have trips abroad, I was always being asked by foreign investors what drives SM’s growth and I told them it’s because of the remittances of our overseas-based workers.'

He added: 'After having major involvements in environmental issues, education, empowering the handicapped among others, I asked the people in the group now to focus on the OFWs in recognition for their vital role in enhancing SM’s growth...'

As of August 2009, about 2 million OFWs had remitted $12 billion to their families.

SM will build three Global Pinoy Centers at the SM Mall of Asia, SM Megamall and SM North Edsa this year. The 36 centers will collectively cost P180MM.

The Global Pinoy Center will

assist OFWs in finding information on investment opportunities and provide them easier access to the Department of Labor and Employment and other government agencies such as the Philippine Overseas Employment Administration, Overseas Workers Welfare Administration.
enable dependents of OFWs to pick up remittances directly from their loved ones even on weekends and holidays.
function as a contact point for the present and former OFWs, balikbayans and their relatives.

OFWs and their families will be issued Global Pinoy card which will entitle them to avail themselves of discounts and freebies from SM Supermalls and other partner establishments, Global Pinoy cardholders could get 20 percent and 15-percent discount tuition discount in Asia-Pacific College and National University, respectively.

SMDC Introduces Four New Condominium Projects

2009-12-04T11:08:00.003+08:00

SM Development Corporation (SMDC) will launch four of its newest residential condominium projects.

The four SM Residences projects are

the Jazz Residences near Jupiter Road in Makati City;
the Sun Residences right beside the Mabuhay (formerly Welcome) Rotunda near the Quezon Avenue boundary of Quezon City and Manila;
the Light Residences near Pioneer Street in Mandaluyong; and
the Wind Residences along the Emilio Aguinaldo Highway in Tagaytay City.

Roger R. Cabuñag, SMDC president said, “Our four new offerings affirm SMDC’s vision of becoming one of the leading residential developers in the country. We will end this year with a menu of 12 different offerings for our clients who may choose their homes from the best locations in the Metropolis, plus a special offering in scenic Tagaytay. Upon completion, SM Residences will provide five-star homes to our buyers through topnotch amenities and facilities even as they are offered at affordable terms.”

Jazz Residences will occupy approximately 25,000 square meters (sqm) of land along Metropolitan Avenue, which interconnects with Jupiter Road near the central business district of Makati City. A total of four towers will rise on a five-storey podium; and will be done in four phases. Each 41-storey tower will have an estimated 1,228 one- and two bedroom units. The amenities of Jazz Residences include a lawn and garden, children’s playground, jogging path, swimming pools with shower rooms, lobby lounge, and a gym and spa, among others.

Sun Residences is located at España Boulevard in Quezon City, right beside one of Metro Manila’s famous landmarks, the Mabuhay or Welcome Rotunda. The area is highly accessible as it is along a primary transport route. Its total land area is approximately 11,832 sqm. Two 43-storey towers will rise on the property with each tower having 1,992 units for sale. As in all SMDC projects, the project will be done in phases with studios, one-bedroom, and two-bedroom units on offer. Sun’s amenities include a recreational area, garden and lawn, children’s playground, students’ lounge, swimming pools, and a jogging path, among others.

The third new project, Light Residences, is located at the corner of EDSA and Madison Street in Mandaluyong City, again making it a highly accessible location for residents who want to live close to the vibrant business districts of Makati, Mandaluyong, and Pasig. Light Residences will have three towers, with Tower 1 having 40 floors, and Towers 2 and 3 having 39 floors each. The first phase will offer a total of 1,386 studios, one-bedroom, or two-bedroom units. The whole project will occupy approximately 19,422 sqm of land and will have amenities such as swimming pools, a function room, jogging path, and a children’s playground, among others.

The only offering outside of Metro Manila is Wind Residences, which is in scenic Tagaytay City. It is located along the city’s major thoroughfare, the Emilio Aguinaldo Highway, occupying 15.45 hectares of land. Wind will have ten 20-storey towers rising in several phases over the medium term. Each tower will offer approximately 702 units for sale. Wind will have a clubhouse, badminton and basketball courts, swimming pools, children’s playground, and a jogging path, among others, as its amenities.

SMDC’s other on-going projects include Chateau Elysee in Paranaque City, Mezza Residences across SM City Sta. Mesa, the Berkeley Residences along Katipunan Avenue in Quezon City, the Grass Residences beside SM City North EDSA, the Field Residences in Parañaque City, the Sea Residences near the Mall of Asia Complex in Pasay City, and the residential subdivision Lindenwood Residences in Muntinlupa City. Last week, SMDC also unveiled Princeton Residences, located along Aurora Boulevard in Quezon City.

Source: PSE Disclosure 03 December 2009. Pasay City, Philippines.

METRO PACIFIC TOLLWAYS DEVELOPMENT CORPORATION SUBMITS PROPOSAL FOR SUBIC-CLARK-TARLAC EXPRESSWAY (SCTEX)

2009-09-17T13:19:00.003+08:00

MANILA, Philippines, 16th September 2009 – Metro Pacific Tollways Corporation (MPTC) today announced that it has submitted an unsolicited proposal to the Bases Conversion Development Authority (BCDA) for the right to operate, maintain, and collect toll from the Subic-Clark-Tarlac Expressway (SCTEX). The proposal was made through Metro Pacific Tollways Development Corporation (MPTDC), a wholly-owned subsidiary of MPTC.
The proposal involves the assignment and transfer by the BCDA of all its usufructuary title, rights and interests in SCTEX to MPTDC. In exchange for such assignment, MPTDC has proposed to pay BCDA certain concession fees and a share in future revenues over the life of the concession.

“When accepted, the proposed acquisition of SCTEX will strengthen MPTC’s leadership position in the Philippine tollroad industry, increasing our share to approximately 67% in linear kilometers from the existing 33%. Ultimately, the motorists will benefit from the consolidation of the toll roads in Northern Luzon by providing them a seamless network of expressways, therefore reducing travel time and making ‘motoring’ all the more convenient.” said Ramoncito S. Fernandez, MPTC President and Chief Executive Officer.

BPI and Globe to Setup Mobile Microfinance Bank

2009-08-26T14:31:00.008+08:00

August 26, 2009

The Ayala Group will setup the Philippine's first mobile micro-finance group to reach 10 million to 15 million people from the current three million borrowers of micro-finance institutions. The group will use Pilipinas Savings Bank, a BPI subsidiary, to provide small loans to institutions through cellular phones.

Bank of the Philippine Islands (BPI) president Aurelio Montinola, told reporters that the Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, approved the conglomerate’s proposal early this month. He said BPI will put set aside P400 million under its wholesale lending program for microfinance institutions. The new entity will be owned by BPI ( 40% ), Globe Telecom Inc (40%) and Ayala Corp (20%).

In separate disclosures to the Philippine Stock Exchange, Globe Telecom and BPI said they await BSP approval for change in name and grant of electronic banking license. They are also seeking Securities and Exchange Commission approval of some amendments to the Articles of Incorporation and By-Laws of Pilipinas Savings Bank.

The mobile microfinance bank will be set up in Globe’s distribution centers, with the Ayala-led telco providing G-Cash to microfinance organizations and rural banks. An SMS-based technology, G-Cash allows money transfer and loan collections via text messaging.

Sources:

Ayala group gets green light for new mobile bank
Yehey Finance August 20, 2009
Globe Telecom, BPI disclosures to the Philippine Stock Exchange

Metro Pacific Looking for Partners for Multiple Road Projects

2009-08-19T13:34:00.004+08:00

Metro Pacific Tollways Corp. is looking for strategic partners for a 13-kilometer elevated road project that will link the North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX).

Company president Ramoncito Fernandez said:
"We're open to discussing [the connector road] with any potential partners. [It will be a consortium] but we don't know yet the structure. We are in the process of finding a financial adviser."

Fernandez added that Metro Pacific Tollways and state-owned Philippine National Railways have completed a pre-feasibility study on the P16-billion project, which will span from Road C3 in Caloocan City to Sen. Gil Puyat Avenue in Makati City. Around 80% of the connector road will be built over existing rail tracks and will shorten travel time from NLEX to SLEX to only 15 to 20 minutes.

Metro Pacific Tollways is also eyeing to undertake Segments 9 and 10 or phase 2 of the NLEX:

Segment 9 is a 4-lane, 3-km expressway linking NLEX to MacArthur Highway in Valenzuela City
Segment 10 will extend NLEX to Port Area via a 4-lane, 5-km elevated road from MacArthur Highway.

Current projects include

Segment 8.1, a 6-lane expressway from Mindanao Avenue to the NLEX, and
Skyway Stage 2, a P10-billion 7-km elevated expressway connecting Bicutan to Alabang.

Source: ABS-CBN News
August 19, 2009

Innovation, New Products Boost Purefoods Revenues in 2008

2009-08-01T10:52:00.003+08:00

San Miguel Pure Foods Company, Inc. (SMPFC), posted a record P71.1 billion in total revenues for 2008, a 15% growth from 2007 figures on the back of pricing measures that covered higher input costs. Steady volume and revenue increases in most of the core businesses and favorable selling prices boosted revenues amid steep raw material price increases and shrinking disposable incomes.

SMPFC Chairman Eduardo M. Cojuangco said:
"Our ability to maintain our market leadership in many different food categories relies on anticipating changing trends and understanding the consumer behavior from various income ranges. We constantly review our product portfolio and find ways to offer quality and affordable products that are relevant to their needs.”

Several innovations include products like Ulam King—an inexpensive, viand that is a complete meal in itself. and Mom’s Kitchen, prepared meals for middle-income consumers.

Also key to the company’s growth are its effective marketing strategies. One example is the Magnolia Chicken Station, which has enjoyed phenomenal success since its launch in 2004. With over 300 stations throughout the Philippines, this selling innovation has resulted in a 29% increase in volumes in the last year alone.

Another SMPFC innovation is the Community Partner Program launched last year. Small entrepreneurs or community partners have been enlisted in the effort to make SMPFC products available in sari-sari stores and wet markets which are beyond the reach of larger dealers due to inaccessibility or lack of economies of scale. With this, SMPFC penetrated close to 100 additional distribution networks.

Cojuancgco added:
“It’s a winning proposition all around: job creation or extra income for those that need it and wider reach for our products. This is the perfect example of how we have worked in partnership with our dealers and found an innovative solution to market in a way that both inspires and rewards.”

He also cited renewed focus on research and development (R&D) that underscore the Food Group’s emphasis on nutrition, value and taste. Facing a challenging 2009, Cojuangco concluded:
“To further drive cost improvements across the Food Group, we will continue working to improve margins by leveraging our scale to ensure we have a competitively advantaged cost base, improve manufacturing efficiencies, and improve the performance of our supply and distribution chains.”

“We are confident that we have adopted the appropriate strategies to successfully surmount the difficulties of the present. While there is still more work to do, we made reasonably good progress in creating a stronger, more resilient San Miguel Pure Foods Company for our consumers, business partners, employees and shareholders.”

Source: SMPFC Press Release, July 21, 2009

NSCB: Northern Mindanao’s economy records fastest growth in 2008

2009-07-22T12:53:00.006+08:00

The Philippine National Statistical Coordination Board reported that Northern Mindanao’s economy posted the fastest growth rate among the country’s 17 regions at 5.3% in 2008. Northern Mindanao's robust performance was fueled by the 10.7% expansion of its agriculture, fishery and forestry sector which had a 31.2% share of the region’s output.

The top five fastest growing regions in 2008 were:

Northern Mindanao ( 5.3% )
National Capital Region (NCR) ( 4.9% )
SOCCSKSARGEN ( 4.6% )
Western Visayas ( 4.4% )
Bicol (4.3% )

Cordillera Administrative Region (CAR) registered the slowest growth at 1.8% in 2008, a deceleration from 7.1% a year ago.

Sixteen of seventeen regions posted slower growth in 2008. Eastern Visayas was the only region which grew, from 3.1% in 2007 up to 3.6% in 2008.

Region	2007	2008
Northern Mindanao	7.7%	5.3%
NCR	7.8%	4.9%
SOCCSKSARGEN	6.7%	4.6%
Western Visayas	7.7%	4.4%
Bicol	7.5%	4.3%
Central Luzon	5.9%	3.8%
Davao Region	6.6%	3.7%
Eastern Visayas	3.1%	3.6%
Central Visayas	8.6%	3.4%
Caraga	7.7%	3.2%
MIMAROPA	9.8%	3.1%
Zamboanga Peninsula	7.2%	2.2%
Cagayan Valley	6.4%	2.0%
CALABARZON	5.3%	2.0%
ARMM	5.4%	1.9%
CAR	7.1%	1.8%

NCR increased its share to the country’s total output with a 33% share in 2008 – up from 32.7% in 2007 and 32.5% in 2006. It is followed by CALABARZON with 11.9% and Central Luzon with 8.3% respectively. ARMM has the lowest percentage share of only 0.9% of the country’s GDP.

NCR, likewise, contributed 1.6 percentage points to the national GDP growth which stood at 3.8% in 2008, lower than its 2007 contribution of 2.5%. NCR was followed by Central Luzon, Western Visayas, and Northern Mindanao, each contributing 0.3 percentage point. ARMM and Caraga, on the other hand, have the least contribution with less than 0.1%.

Growth of the economies of all the major island groups (Luzon – excluding NCR, Visayas and Mindanao) were lower in 2007. Luzon’s economy slowed down from 6.2% in 2007 down to 2.7 percent in 2008, Mindanao decelerated from 7% down to 4% and Visayas plunged from 7.5% to 3.8%.

NCR continued to register the highest real per capita GRDP, increasing by 3.4% from P 40,241 in 2007 to P 41,624 in 2008. NCR’s level is almost three times the national per capita GDP of P 15,686. CAR and Northern Mindanao have higher real per capita GRDP than the national average at P 19,043 and P 17,050, respectively. On the other hand, ARMM posted the lowest real per capita GRDP at P 3,572. Three regions - CAR, CALABARZON and ARMM, posted a decline in their per capita GRDP from 2007 to 2008.

The gross regional domestic product (GRDP) measures the goods and services produced in each of the geopolitical regions of the country. It provides for an analysis of the regional distribution of the country’s gross domestic product (GDP), the industries and factors that contribute to the regional economies, and the pace at which these economies are moving. The National Statistical Coordination Board compiles the GRDP on an annual basis.

Copies of the 2006-2008 GRDP are available for sale at the National Statistical Information Center (NSIC) located at the Ground Floor, Midland Buendia Building, 403 Senator Gil Puyat Avenue, Makati City. For subscription and inquiries, please contact the NSIC at telephone numbered (632) 895-2767 or at e-mail address info@nscb.gov.ph.

Manila Water Acquires Water Concession in Laguna Province

2009-07-21T12:41:00.004+08:00

Manila Water Company acquired water concession to provide water supply services to Sta. Rosa, Binan and Cabuyao in Laguna province by purchasing 100% ownership of AAA Water Corporation. AAA Water corporation owns 70% of Laguna AAA Water Corporation, a joint venture with the province of Laguna, Philippines.

Laguna AAA Water Corporation currently serves 120,000 customers out of the current 600,000 population, and is expected to grop to 1,100,000 in 15 years. The service area is home to the operations of Nestle, Coca-Cola and Ford Motors, and to a number of commercial/residential developments by Ayala Land, Vista Land and Eton Properties.

Manila Water has an existing concession in the East Zone of Metro Manila, serving 5.6MM people. Since 1997, it has increased 24 hour coverage from 26% to 99% and reduces water losses from 63% to less than 20%.

Manila Water recently took over water and wastewater operations in Boracay Island.

San Miguel To Participate In Expressway Project

2009-07-21T12:19:00.004+08:00

San Miguel Corporation (SMC) announced last July 20 that it has entered into a non-binding agreement to acquire a significant stake of the Private Infrastructure Development Corp. (PIDC), a consortium of construction companies behind the Tarlac-Pangasinan-La Union Toll Expressway Project.

The 88-kilometer expressway project will extend from La Paz, Tarlac to Rosario, La Union. Once completed, it is estimated that the expressway will cut by half the travel time from Manila to Baguio.

The parties have agreed to execute and finalize a definitive agreement which shall be subject to government approval.

SMC has diversified its business interests to include a stake in power retailer Manila Electric Co. (Meralco), oil refiner Petron and Liberty Telecom.

Ramon S. Ang, SMC president and chief operating officer said:

"This is in line with our diversification plans and we’re happy to be a catalyst for the infrastructure needs of the country."

"The North to Central Luzon stretch is a potentially dynamic industrial corridor and the proposed expressway will make it easier and more cost effective to move goods and people from one point of Luzon to another. As a food and beverage conglomerate with one of the most developed distribution networks in the country, we have a strong interest in making it happen."

2009-06-24T19:18:00.002+08:00

In the News:

June 2009

May 2009

April 2009

March 2009

February 2009

January 2009

December 2008

Megaworld expects P1.4B from new Greenbelt project

2008-12-22T11:29:00.003+08:00

Megaworld Corporation, the country’s #1 residential condominium buildings developer, is still quite bullish for the real estate industry, as it expects P1.4 billion in sales revenues from its fifth Greenbelt-area project.

Dubbed Greenbelt Madison, the 31-story building will rise along Salcedo St. in Legaspi Village, Makati City. The location puts it a block away from Ayala Avenue, the country’s main financial artery.

Greenbelt Madison will have 276 executive studio and 2-bedroom units. Groundbreaking is slated for next year, with turnover scheduled towards the late part of 2012.

Megaworld is slated to deliver all units fully furnished upon turnover, its fourth such offering after Greenbelt Chancellor, Greenbelt Excelsior and One Central.
“Despite the ongoing financial crisis abroad, we are quite confident with Greenbelt Madison because of its prime location near Ayala Avenue and Makati Medical Center. We expect it to sell out in the next few months, just like its highly successful predecessor projects,” Megaworld VP for Marketing and project head Clifford Legaspi disclosed.

The project is Megaworld’s fifth offering within this prime Makati area. Already finished are Greenbelt Parkplace and Greenbelt Radissons. Now under construction are Greenbelt Chancellor and Greenbelt Excelsior.

Among the amenities planned for Greenbelt Madison are a 15-meter lap pool, gym, wading pool and a grand lobby. Parking will be allocated for residents across two basement levels and five podium floors.

Given the project’s location within the Makati business district, Megaworld is targeting “doctors, executives, entrepreneurs and investors” for Greenbelt Madison, according to Legaspi.

PayPal Integration Made Easier for Philippine Online Merchants

2008-12-20T01:38:00.004+08:00

Manila, Philippines, December 15, 2008 --(PR.com)-- Mozcom PayEasy Online Payment System ("PayEasy") has signed up as a Channel Partner of PayPal, the world’s leading online payment provider. With this development, local online merchants can now instantly add PayPal as a payment option to their shopping carts or online payment modules, when they open a PayEasy merchant account. There is no need to learn new programming interfaces as the PayPal Express Checkout will integrate transparently with PayEasy giving online businesses a one-stop-shop payment solution that ranges from local ATM and mobile phone payments, to the major credit cards, and now, PayPal.

As one of the preferred payment methods on the Web in the United States, United Kingdom and Australia, PayPal (www.paypal.com.ph) offers secure payments in 190 markets by providing an extra level of security and privacy as its users do not have to disclose credit card information directly to online merchants when paying for items. Additionally, PayPal's proprietary fraud detection models, 24/7 fraud monitoring, and protection for buyers against unauthorized transactions, gives shoppers peace of mind and more confidence to buy online.

"We are eager to work with PayPal in developing the local e-commerce market, and we are honored to be their first operational, locally-based Channel Partner in the Philippines," said Dick Chiang, Mozcom COO/CTO. "A strong global brand like PayPal can be a boon to local merchants as it gives a certain level of confidence and trust to foreigners who may be initially wary at buying from unknown Philippine websites."

"With e-commerce growing quickly in Asia, PayPal is committed to supporting the phenomenal rise of online payments in the Philippines, as well as around the globe," said Gene Wong, Head of PayPal Asia Merchant Services. "Working with PayEasy is a natural fit with PayPal’s global, all-in-one payment solution and we look forward to working with them to help enable more e-commerce growth in the Philippines and beyond.

About Mozcom

Mozcom PayEasy is the most comprehensive online payment system in the country today supporting all major credit cards (Visa, MasterCard, American Express, Discover, JCB, Diners Club), BancNet and MegaLink ATM cards, PayPal, China UnionPay, Globe G-Cash, Smart Money, Western Union, over-the-counter bank deposits, and direct account debit with major banks in China, Malaysia, Thailand and Taiwan. For more information, visit http://www.payeasy.ph or call +63(2)848-2606 .

About PayPal

PayPal is the safer, easier way to pay and get paid online. The service allows users to pay without sharing financial information and gives consumers the flexibility to pay, using their account balances, bank accounts, or credit/debit cards. With 65 million active accounts in 190 markets and 19 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company. More information about the company can be found at www.paypal.com.ph.

PayPal is headquartered in San Jose, California. Its European headquarters are in Luxembourg and its international headquarters (PayPal Private Limited) are located in Singapore.

Consumer advisory - PayPal Pte. Ltd., the holder of PayPal's stored value facility, does not require the approval of the Monetary Authority of Singapore. Users are advised to read the terms and conditions available at www.paypal.com carefully before use.

iRemit Reports 47% Growth in Jan to October

2008-12-17T14:26:00.002+08:00

iRemit Forges New Partnership with the Philippine Retirement Authority

I-Remit, Inc (iRemit) reported that its remittance volume for the first ten months of this year grew by 47 percent to $902 million compared with the same period last year.

iRemit's growth continues to soar higher than the industry. In its recent report, the Bangko Sentral ng Pilipinas registered cumulative remittances of US13.7 billion for the first ten months of the year, 15.5 percent higher than the level recorded during the same period a year ago. Year-on-year, October remittances rose modestly by 3.3 percent.

Commenting on the results, Harris Jacildo, president and chief operating office said, "We anticipated the modest growth of the industry because of the reported global economic downturn. This affected our short-term results but put us in a good position to expand market share and enhance the customers' experience in the foregin markets. We shifted gears by remodelling the marketing strategies while at the same time aggressively expanding our international tie-ups. We absorbed many cost increases to keep our exchange rate competitive. We believe this strategy is important to maintain customer loyalty and to help our customers during these uncertain economic times."

As part of its expansion programs, iRemit partnered with the Philippine Retirement Authority(PRA). Both institutions forged a partnership with regard to information dissemination and promotion of PRA's Retirement programs including the tax-free private pension scheme under the Personal Equity Retirement Account or PERA law.

"This new partnership with the Philippine Retirement Authority underscores the strong commitment of iRemit to develop tangible strategies that address the needs of the overseas Filipinos in a challenging economic landscape," said Bansan Choa, chairman and chief executive officer of iRemit.
Choa added that iRemit has manifested its willingness to disseminate information and to assist in promoting those programs in the countries where it is present.

The appointment of iRemit as one of the agents of PRA in the information dissemination, promotion of programs and collection is another milestine for the company. "We're extensively working on several institutional partnerships with different companies that share our ideals and goals in helping Filipinos abroad especially during these volatile times," said Jacildo. He also stressed that this initiative will boost iRemit's performance and will serve as an instrument in acchieving the US 1 billion mark goal for 2008.

This month, iRemit recently opened its new branch in Perth, Western Australia. The company is currently present in 25 countries across the continents with over 600 international tie-ups and 4,000 payout centers nationwide.

Source: iRemit, Inc press release.

Qtel Sees “Huge Potential” for Expansion and Growth within

2008-12-16T12:17:00.003+08:00

14 December 2008

Qtel Sees “Huge Potential” for Expansion and Growth within the Philippines

Gloria Macapagal-Arroyo, President of the Philippines, Meets with Qtel Chairman to Discuss Social and Economic Benefits of AdvancedCommunications

Doha, Qatar

Senior executives from Qatar Telecom QSC (“Qtel”) (Ticker: QTEL.QA), today met with Gloria Macapagal-Arroyo, President of the Philippines, to review potential areas of cooperation for the extension of access to broadband internet technology in the Philippines.

The meeting was organized as part of the president’s working visit to Qatar to strengthen economic ties between the two countries. His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of Qtel, who led the Qtel delegation, said: “We were extremely grateful for the opportunity to meet with President Macapagal-Arroyo. Qtel has looked to increase its profile within the Republic of the Philippines and the environment appears increasingly open to external investment and the provision of communication services.”

“We see huge opportunities for growth and partnership within the Philippines and this meeting provided an important opportunity for Qtel to communicate its ambitions and its obligations to the people of the Republic,” he added. Following the meeting, Qtel also signed a Telecommunications Memorandum of Understanding with the San Miguel Corporation (SMC), one of the Philippines' leading business conglomerates, as part of the Group’s ongoing plans for expansion and consolidation within Southeast Asia.

The strategic agreement will see the two companies begin exploration of joint opportunities in the wireless broadband, mobile and mobile broadband sectors in the Philippines.

Qtel is already actively engaged in extending its wi-tribe brand, which supports the provision of broadband wireless services for emerging markets. wi-tribe has already realized significant success in providing Wi-MAX services in Jordan, and is in the process of rolling-out new offerings for Pakistan.

Among the issues discussed during the meeting was Qtel’s strong commitment to maximizing the positive social impact of Wi-MAX in every market it operates in.

In particular, executives outlined a number of positive educational programs already made possible across Qtel Group’s territories through the provision of Wi-MAX technology to schools and universities.

This press release has been issued by Qtel GROUP COMMUNICATIONS-Department. For further information please contact:
Tel: +974 440 0838 / +974 440 0201
Fax: +974 411 3606
Email: Amutawa@qtel.com.qa

About Qtel

Qatar Telecom (Qtel) is the telecommunications service provider licensed by the Supreme Council of Information and Communication Technology (ictQATAR) to provide both fixed and mobile telecommunications services in the state of Qatar. We have a presence in 16 countries and we are committed to expansion both in the MENA region and South East Asia. Our vision is to be among the top 20 telecommunications companies in the world by 2020.

About San Miguel Corporation (SMC)

San Miguel Corporation (SMC) is Southeast Asia's largest publicly listed food, beverage and packaging company with over 15,000 employees in over 100 major facilities throughout the Asia-Pacific.

SM Retail Group Expands to 98 stores in 2008

2008-12-15T12:56:00.002+08:00

(15 December 2008. Pasay City, Philippines.) Philippine conglomerate SM Investments Corporation (SM) reported that with the opening of a new SM Supermarket branch in Cubao, Quezon City yesterday, 14 December 2008, its retail network has expanded by 12.6% to a total of 98 stores, composed of 33 SM department stores, 24 SM supermarkets, 13 SaveMore branches, 13 SM hypermarkets, and 15 Makro outlets.

For full-year 2008, SM opened 11 new stores consisting of two SM department stores, two SM supermarkets, two SM hypermarkets, and five SaveMore branches. SaveMore branches are typically stand-alone stores located outside SM shopping malls mainly targeting high-density residential areas. Late last year, SM also increased its stake to own controlling interest in wholesaler Pilipinas Makro, Inc. which has 15 Makro stores in Metro Manila.

The new SM stores in 2008 increased the selling space of department stores by 5% to 518,236 square meters (sqm) and of the food retail group by 42% to 287,516 sqm. SM president Mr. Harley Sy said, “SM retail will continue to increase its presence nationwide. This reiterates SM’s sustained commitment to the Philippine economy and its potential to deliver long-term growth and expansion amid short-term challenges posed by the global crisis.”

Source: SM Investments Press Release

San Miguel and Qatar Telecom sign MOU

2008-12-15T12:49:00.002+08:00

Senior executives from San Miguel Corporation(SMC) and Qatar Telecom QSC(QTEL) signed a memorandum of understanding to partner today in wireless broadband and mobile communications projects in the Philippines.

Qtel acquired in May 2008, Liberty Telecoms Holdings, Inc, a holding company whose subsidiaries provide wireless voice and data telecommunications services.
The strategic agreement will see the two companies begin exploration in the wireless broadband, mobile and mobile broadband sectors in the Philippines and to review potential areas of cooperation for the extension of access to broadband internet technology in the Philippines.

The MOU was signed by SMC President and Chief Operating Office Ramon S. Ang and Qtel Deputy Chairman Sheikh Mohammed Bin Suhaim Al-Thani, in Doha Qatar on the occasion of the official visit of President Gloria Macapagal Arroyo, who led a trade mission to the Gulf State.

Witnessing the signing were President Arroyo and Qtel Chairman Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani.

The President welcomed Qtel's proposed partnership with SMC as she called for more investments in technology and other related industries, highlighting telecommunications as a key area ripe for investment.

Said His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, "We see huge opportunities for growth and partnership within the Philippines and this meeting provided an important opportunity for Qtel to communicate its ambitions and its obligations to the people of the Philippines.

For inquiries, please call
Mary Jane Llanes/Jayson Brizuela / Jon Hernandez
632-3162, 632-3542, 632-3504

Source: San Miguel disclosure to the Philippine Stock Exchange

SM Pursues Development of World Class Entertainment Hub

2008-12-13T01:59:00.002+08:00

(12 December 2008. Pasay City, Philippines.) SM Investments Corporation (“SM”) reported today that its property subsidiary SM Land, Inc. will pursue the transformation of the 60-hectare Mall of Asia Complex into a world-class business and entertainment hub fronting the famous Manila Bay. The plan runs in line with the group’s thrust into tourism development as SM develops other projects such as Hamilo in Batangas and a chain of high-end and boutique hotels, and convention centers throughout the country.

SM Vice Chairman Henry Sy, Jr. said, “We believe in the country’s strong potential in tourism. As such, SM will be at the forefront in providing much-needed infrastructure and facilities for more tourists to enjoy the country’s scenic destinations, while experiencing the warmth of Philippine hospitality.”

The entertainment hub will have on its plate a number of hotels fronting the Manila Bay to be operated by leading international hotel chains like the Radisson and the luxury Regent brand. It will also include high-end retail establishments, a mega structure that will be operated by an international casino operator, and a theater for the performing arts. There will also be a residential component and a ferry terminal that will directly link the Mall of Asia Complex with SM’s Hamilo project. The recent provisional license granted by PAGCOR marks the start of the
development of the entertainment hub which will be executed over the medium term.

Source: SM Investments Press Release

PNB Sells Equity Stake in Insurance Affiliate for P700 Million

2008-12-11T14:55:00.002+08:00

The Philippine National Bank (PNB) has completed its divestment from the Beneficial-PNB Life Insurance Company, Inc. (BenLife) with the signing of a Deed of Absolute Sale covering its 40% equity interest in said company. PNB's shareholdings were acquired by the firm's majority owners, namely FMF Development Corporation and Merje Trading, Inc. The buyers turned over to PNB P350 Million on November 28, 2008 representing the full payment of the purchase price totaling P700 Million.

PNB's divestment in BenLife is in line with its thrust to consolidate its bancassurance business with PNB Life Insurance, Inc (formerly New York Life Insurance, Inc.) Aside from life insurance, the Bank is also engaged in non-life insurance through its wholly owned subsidiary, PNB General Insurers Co., Inc. One of the biggest universal banks, PNB offers ancillary financial services such as insurance, investment banking, leasing and financing, and stock brokerage, among others, through its various subsidiaries and affiliates.

** PNB Press Release

“The Annex” Makes SM City North Edsa the Largest Mall in the Philippines

2008-12-11T14:30:00.004+08:00

(11 December 2008. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime) announces the soft opening of The Annex at SM North Edsa on Friday, 12 December 2008. The new annex will add 90,000 square meters (sqm) of gross floor area (GFA) to the main mall, which is located at the corner of EDSA and North Avenue in Quezon City. With The Annex, SM City North Edsa’s GFA expands to 425,000 sqm, making it the country’s largest shopping mall, surpassing the SM Mall of Asia in Pasay City which has a GFA of 407,000 sqm.

In terms of global ranking, SM City North Edsa now becomes the third largest shopping complex, but still joined by SM Mall of Asia, SM Megamall, and SM City Cebu which rank fourth, seventh, and eleventh, respectively. All these malls have occupancy rates of over 95%.

SM Prime President Mr. Hans Sy said, “Our expansion of SM North EDSA is reminiscent of its ambitious beginnings. Back in 1985, it was the largest and the only mall of its kind with a GFA of 120,000 sqm. It was launched at a very challenging period in the country’s political history. This year, amidst serious global challenges, we open The Annex at the SM North EDSA. This speaks of how we view the longer-term prospects of the country. Add to this is our desire and ability to provide the needs of our millions of customers who grow in sophistication, while constantly looking for value products and services.”

The Annex at SM North Edsa consists of six floors and a basement area, 70% of which has already been awarded to various tenants. Its major tenants include Savemore Supermarket, Ace Hardware and an SM Cyberzone. Other mall tenants include fashion retailer Charles & Keith; watch and jewelry shop Chronos; infant store Baby & Company; and electronic shops Power Mac Center, Sony VAIO, HTC, and Belkin, among many others. SM North Edsa is the only mall of SM Prime where the three food retail formats, Savemore Supermarket in The Annex, SM Supermarket in the Main Building and the SM Hypermarket in The Block, are all located in one complex.

It is estimated that the opening of The Annex at SM North Edsa will provide employment to close to 3,000 people which includes direct and indirect employees.

In 2009, SM North EDSA also looks forward to opening the Skygarden, which offers another exciting and environmental element to the Mall complex. Earlier, SM Prime launched SM City Marikina, the SM Megamall Bridgeway and SM City Rosales. The Company is also set to open SM City Baliwag in December 12.

**SM Prime Holdings Press Release

SM Prime Opens SM City Baliwag

2008-12-10T18:57:00.002+08:00

(10 December 2008. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime) will open its 33rd mall in the country on Friday, 12 December 2008 in Baliwag, Bulacan. SM City Baliwag occupies 93,000 square meters (sqm) of land and has a gross floor area (GFA) of 61,554 sqm. Its total leasable area is 42,171 sqm with two of its anchor tenants, SM Department Store and SM Hypermarket occupying 18,985 sqm and 9,507 sqm of floor space, respectively. SM City Baliwag is located approximately 40 kilometers from the EDSA - Balintawak interchange of the North Luzon Expressway.

As in all other SM Prime malls, SM Baliwag offers a complete line of stores and services for shopping, dining, entertainment, health, and wellness. Among the facilities included are an 824-sqm food court, four cinemas with a combined seating capacity of 1,241, and parking for over 500 vehicles. Other mall tenants include Jollibee, KFC, Gerry’s Grill, SM Appliance, Watsons, National Bookstore, Ace Hardware, and Worlds of Fun, among others.

SM Prime President Mr. Hans Sy said, “We welcome SM City Baliwag as the 33rd member of our family of SM Supermalls. Baliwag is one of the major transport hubs in the province of Bulacan, a take off point to and from Pampanga, Nueva Ecija, and Metro Manila. It has a festive and traditional setting, which include Holy Week processions that attract huge crowds. These attributes make Baliwag an ideal location for an SM mall.”

Baliwag is a first class, urban municipality in the province of Bulacan. It is also known for its native delicacies, furniture, garments, embroidery, and a thriving pyrotechnics industry. SM City Baliwag is the last mall to be opened in 2008.

It is estimated that the opening of SM City Baliwag will provide employment to close to 1,500 people which includes direct and indirect employees.

Earlier, SM Prime launched SM City Marikina, the SM Megamall Bridgeway and SM City Rosales in Pangasinan. The Annex at SM City North Edsa is also set to open in December 12. All these increase the total gross floor area of SM malls by 9% to 4.3 million sqm.

* Press release by SM Prime Holdings, Inc.

Metropass to Sell ScratchIT Tickets

2008-12-09T19:54:00.000+08:00

Rhederick B. Inciong, CFO and Vice President of Pacific Online Systems Corporation, in a disclosure to the Philippine Stock Exchange said:

'...Pacific Online Systems Corporation ( Pacific Online ) has entered into a distribution agreement for its ScratchIT instant tickets with Metropass Systems Incorporated (Metropass).

Metropass owns and operates 22 retail store outlets in all 13 Metro Rail Transit Line 3 (MRT3) stations. MRT3 systems' passenger capacity is 485,000 daily.

Pacific Online just recently rolled out its new PCSO ScratchIT tickets - "Red Hot 7's", "Mega Money", "Double Dollars" and "Gold Rush" - to complement its "Fast Cash" and "Diamond Dash" games. '

More...

San Miguel to Negotiate Purchase of 50.1% Stake in Petron

2008-12-09T19:44:00.000+08:00

Ferdinand Constantino, San Miguel Corporation's Corporate Information Officer, in a disclosure dated December 8, 2008, to the Philippine Stock Exchange stated that the San Miguel Board of Directors authorized the company to enter into an option agreement with Ashmore Group for the purchase of up to 50.1% of Ashmore's interest in Petron Corporation.

More...

Business Expectations Survey 4Q 2008

2008-12-09T19:14:00.000+08:00

The Business Expectations Survey reported:

Business confidence in Q4 2008 improved slightly relative to the previous quarter, although the overall confidence index (CI) remained negative. The CI at -6.8 percent, went up by 6.1 percentage points quarter-on-quarter. This moderate uptick may be due to the recent easing of world oil prices as well as expectations of a seasonal pick-up in demand and higher OFW remittances during the year-end holidays. The bearish outlook on the macroeconomy mirrored the weak global sentiment due to the global economic slowdown and the financial turmoil.

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