Ayala Corp. posts P16-B profit, up 7%

Published August 13, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Ayala Corporation reported that its net income expanded seven percent in the first half of the year to P16.1 billion year-on-year, lifted by the solid performance of its real estate, telecommunications, and power businesses.

Ayala Corporation logo (Photo courtesy of www.ayala.com.ph/)
Ayala Corporation logo (Photo courtesy of www.ayala.com.ph/)

In a disclosure to the Philippine Stock Exchange, the firm said equity earnings reached P19.5 billion, 12 percent higher from a year ago.

This was underpinned by robust contributions from Ayala Land and Globe Telecom, which climbed 18 percent and 25 percent, respectively. This was further lifted by AC Energy, whose equity earnings contribution more than doubled in the first semester.

In the second quarter, Ayala recorded a net income of P8.4 billion, up three percent from a year ago mainly driven by Ayala Land and AC Energy, which posted transaction gains from value realization initiatives.

However, the lower fee-based income and higher operating expenses recorded by the Bank of the Philippine Islands tempered Ayala’s net earnings during the period.

“These results validate our long-term strategy to achieve a more resilient portfolio by allocating capital to new businesses from which we can derive fresh sources of growth while continuing to expand our core businesses,” Ayala President Fernando Zobel de Ayala said.

He added that, “with the steady state operations of its platforms and consistent value realization initiatives, we are happy to see AC Energy starting to provide the necessary balance to some of our more cyclical and longer gestation businesses.”

Ayala Land sustained its earnings momentum, with net income growing 18 percent year-on-year to P13.5 billion primarily driven by its residential segment, supported by the commercial leasing business.

BPI reported a net income of P11.03 billion for the first half of 2018, 5.7 percent lower year-on-year, as lower non-interest income and higher operating expenses offset growth in the bank’s core business.

AC Energy’s net earnings expanded more than twofold to P2.1 billion in the first semester year bolstered by the solid performance across its wind, geothermal, and thermal platforms.

AC Industrials’ net income climbed 2 percent year-on-year to P752 million, supported by a one-time gain by its electronic manufacturing services arm, but dragged by lower net income of its automotive retail segment.

Manila Water recorded a net income of P3.6 billion in the first half, 10 percent higher from the previous year, while Globe Telecom reported a net income of P10.1 billion from P8.09 billion.

 
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