JUNE 2011 www.lopezlink.ph ANC: 15 films for 15 years See story on page 6. www.facebook.com/pages/lopezlink www.twitter.com/lopezlinkph What’s your Palaro Team on June 25? Story on page 5. At 81 years old OMLBy Rafael M. Alunan III conquers Mt. Kinabalu IT was another dream come true for Oscar M. Lopez (OML). Making things happen is in his genes. The seed took root years ago from a picture he saw of Mt. Kinabalu in Sabah, Borneo. It took shape as he was conquering the tallest peaks of Luzon (Mt. Pulag), Visayas (Mt. Kanlaon) and Mindanao (Mt. Apo). OML inspired those who heard of him on the slopes and went out of their way to shake his hand. “So, you heard of an 81-year-old loose on the mountain?” he would quip. He led 23 other men and women of the Lopez family, Lopez Group and First Philippine Mt. Everest Team through five grueling days on the trail, around seven hours daily on the go, to climb and descend from Sabah’s rooftop. Even as the air thinned and the climb got more arduous, his limitless supply of adrenaline and chutzpah paved the way. Getting to Kinabalu took years through a long and winding road. Cresting the country’s tallest peaks required numerous training climbs and country treks to test endurance, strength, stamina and will power. The ever-present Turn to page 10 Lopez Group hauls Back-to-school five ICD awards ‘Biggest Loser’ finds and gifts …page 3 big winner!…page 4 for dads…page 12 Lopezlink June 2011 BIZ NEWS NEWS Lopezlink June 2011 January to March 2011 Financial Results (unaudited) Net income attributable to equity TOTAL REVENUES holders of the parent company Lopez Holdings attributable ABS-CBN, Lopez 2010 2011 % change 2010 2011 % change net income at P902M Holdings complete ABS-CBN P7.752B P6.559B -15 P1.086B P976M -10 LOPEZ Holdings Corpora- 1Q2011 includes the follow- enues from political and advo- Lopez Holdings P7.752B P6.559B -15 P11.023B P902M -92 tion reported P902 million in ing: P767M gain on sale of cacy ads (from 1Q2010). This PDR sale to STTC PHOTOBY RYANRAMOS EDC P7.160B P5.953B -17 P3.263B P1.378B -58 net income attributable to eq- SKYCable PDRs (Philippine shows ABS-CBN is well on $351.3M $314.1M -10 $36.1M $16.1M -55 ABS-CBN Corporation and innovative, world-class services First Gen uity holders of the parent for Depositary Receipts) by Lopez track to meet its 2011 target of FPHC P18.763B P16.198B -14 P24.563B* P567M -98 Lopez Holdings Corpora- as it expands its pay TV and the first three months of 2011, Holdings and ABS-CBN Cor- at least equaling last year’s re- tion have completed the sale high-speed broadband service poration, P45M gain on sale of cord performance. Meanwhile, *Including P23.6 billion combined gain on the sale of Meralco shares (6.6%) and the mark-to-market restate- an amount that is 92% lower of P2.162 billion Philippine offerings,” ABS-CBN chairman Lopez Holdings condominium FPH’s power generating asso- ment of its Meralco shares than the P11.023 billion attrib- Depositary Receipts (PDRs) Eugenio L. Lopez III said. utable net income reported in unit, and P25M gain on ex- ciate, First Gen Corporation, over shares in SKYCable Cor- The PDRs are issued by Sky the same period of 2010. This tinguishment of debt for debt is in investment mode, reha- poration to a subsidiary of STT Vision Corporation, the hold- was primarily due to the 98% bought back during the period. bilitating power plants that are Communications Ltd. (STTC), ing company of SKYCable. Lopez Group officers with their company’s respective awards (seated from left): Ricky Tantoco (EDC, Gold), FPH director Oscar Hilado, Elpidio year-on-year (YoY) decline in Unaudited consolidated rev- expected to deliver key revenue First Gen attributable Sampaquita Communications They give the holder the right Ibañez (Platinum, FPH), chairman emeritus Oscar M. Lopez, Pearl Catahan (FPH, Gold), Lito Santos (First Gen, Silver), Bong Osorio (ABS- equity net earnings of associates enues decreased by 15% YoY to streams in the medium term. Pte Ltd. but not the obligation to pur- CBN, Gold) and Salvador G. Tirona (LHC, Gold) to P261M from P10.563M. The P6.559B from P7.752B. The sale of electricity accounts Simultaneously with these chase the underlying SKYCable net income at $16.1M 2010 figure included gains from “The performance of invest- for 82% of FPH revenues,” said transactions, Sampaquita com- shares if the holder is qualified the sale of associate First Philip- ees was within expectations. Lopez Holdings president Sal- pleted its investment in new under Philippine law to hold FIRST Gen Corporation re- in the first quarter ended 2011 FG Hydro was partly offset pine Holdings (FPH) Corpora- ABS-CBN’s attributable net vador G. Tirona. PDRs covering P1.45B worth SKYCable shares. The PDR ported sharply lower attrib- from last year’s $351.3M. by lower interest expenses due tion of a 6.7% stake in Meralco, income would have increased As of December 31, 2010, of SKYCable PDRs and its holder has no voting rights over utable net income to parent Revenues derived from eq- to reduced debt at Red Vul- completed in March 2010. by 12% YoY if we remove Lopez Holdings held a 57.3% Lopez Group hauls subscription to a P250-million the SKYCable shares. of $16.1 million for the first uity in net earnings of EDC can Holdings Corporation, Lopez Holdings’ net income the effects of the gain on sale economic interest in ABS- convertible note issued by SKY- The investment by STTC in quarter of 2011, down by 55% and FG Hydro went down by which directly owns 40% of attributable to equity holders of SKYCable PDRs (from CBN and 44.3% in FPH. (Car- Cable. The investment, which SKYCable is a recognition of from $36.1M posted in the $25.4M. EDC, and at the parent com- of the parent of P902M for 1Q2011) and the P1.4B rev- la Paras-Sison) amounts to about P3.862B in the the achievements of SKYCable same period last year. The lower The sales from electricity pany. First Gen’s own interest aggregate, will give Sampaquita in providing high-quality pay earnings were due to lower were driven by the combined expense was lower by $3.9M, five ICD awards approximately 40% of the eco- TV and communication ser- FIVE Lopez Group companies CG-Sc. First Gen Corporation All listed corporations were directors and reputational agents contributions from Energy dispatch of First Gas’ Santa from $10.2M to $6.3M for EDC posts P1.45B net income nomic rights in the cable com- vices to its customers. It also received awards for exemplary rounded out the winners with a evaluated based on the publicly committed to the professional Development Corporation Rita and San Lorenzo power the first quarter ended 2011 pany. Despite the investment, represents a closer relationship corporate governance, including Silver award. available documents that can be practice of corporate directorship (EDC) and First Gen Hydro plants which was 87% for the with the full payment of the ENERGY Development Cor- and COO Richard Tantoco. to accelerate this to recommis- the Lopez Group maintains between the Philippines’ top the top Platinum award, from Lopez Holdings president Sal- found on the company website in the Philippines in line with Power Corporation. first quarter, in comparison to 11.55% P5.0 billion bond in poration (EDC) reported a net “…We are a company in tran- sioning the BacMan power almost all voting control and an broadcasting group and one of the Institute of Corporate Direc- vador G. Tirona said the company or on the Philippine Stock Ex- global principles of modern cor- EDC provided lower earn- last year’s 76%. Despite the July 2010. income of P1.45 billion for the sition, in investment mode for plants within the year,” Tantoco aggregate economic interest of Singapore’s leading informa- tors (ICD) during the ICD 8th was pleased to be recognized by change and Securities and Ex- porate governance. The CG-Sc is ings to First Gen of $9.6M in substantially higher dispatch, First Gen’s consolidated first quarter of the year, down the future.” said. almost 60% in SKYCable. tion communications groups. Annual Dinner at The Manila ICD as one of the country’s top change Commission websites. one of the initiatives it has taken the first quarter of 2011, down revenues from the sale of elec- net income in 1Q2011 de- by 61.4% from the P3.77B Also contributing to the drop EDC, through its subsid- “SKYCable will be able to ING Bank N.V. acted as fi- Peninsula on May 25, 2011. publicly listed companies. Established in 2004, ICD is towards setting higher standards by $11.9M, as compared to tricity were lower by $11.4M, or creased by $20.9M, or 42%, posted for the same period last in income were the lower num- iaries Green Core Geothermal leverage on the technical exper- nancial advisor to SKYCable in Leading the Lopez Group “Good corporate gover- composed of individual corporate of corporate governance. $21.4M in the same period 4%, to $300.5M in 1Q11 from to $29.1M, compared to the year. Core net income also de- bers of FG Hydro due mainly Inc. and BacMan Geothermal tise of STTC and to continue the transaction. (P.M. Villan- winners was First Philippine nance has always been part of last year.