Latest Stories

Ayala group’s consolidated profit rose by 12% in ’12


Conglomerate Ayala Corp. grew its consolidated net profit last year by 12 percent to P10.6 billion on higher contribution from its real estate, banking and water businesses.

Excluding the group’s nonrecurring items, core net income rose by 32 percent to P11.6 billion. Extraordinary items include the impact of the accelerated depreciation arising from the network modernization of its telecom unit and the revaluation gains realized by its international property and electronics units.

Consolidated revenue also increased by 16 percent to P125 billion, Ayala Corp. told the Philippine Stock Exchange on Monday.

“We are encouraged by the robust performance of our core businesses and improved profitability of our international businesses. This validates the programs and strategies we have implemented across the group over the past two years,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said in a statement.

“The strong and sustainable earnings trajectory and steady cash flows from our core businesses have enabled us to scale up our investments in the new businesses we are pursuing in the power and transport infrastructure spaces. We envision these two emerging sectors to serve as platforms for future growth,” he said.

Equity earnings reached P14.3 billion in 2012, a 16-percent increase year-on-year driven by Ayala Land Inc., Bank of the Philippine Islands and Manila Water Co. Significant improvement in equity earnings of its automotive, electronics (Integrated Microelectronics Inc.) and business process outsourcing units provided an added boost to Ayala’s equity earnings in 2012.

Its share in the revenue of Ayala’s BPO business unit, LiveIt, reached a record $343 million, up by 8 percent from year-ago level, while the share in cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) grew to a record $32 million, up by 36 percent. As a result, LiveIt trimmed its annual net loss, which was primarily due to the amortization of intangibles and interest expense related to leveraged buyout of Stream. LiveIt finished the fourth quarter with share of Ebitda of about $10 million, representing the eighth straight quarter of year-on-year Ebitda growth.

Last year, the Ayala group spent about P150 billion in capital expenditures, the highest in its 179-year history.  Apart from the new investments of its core business, the amount was used to fund the parent company’s investment programs, including the acquisition of the 10.4-percent stake unloaded by DBS Bank of Singapore in  Bank of the Philippine Islands. The Ayala group raised its ownership in the bank to 44 percent.

The parent company’s acquisitions of various power assets to build its portfolio in the sector also formed part of the capital expenditures.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: ayala corp. , Business , profitability

  • mamamiamia

     Kinikilig ako mga amiga when I read this news! Muy Bueno Ayala!

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Drunk passenger triggers Bali hijack alert
  • Businesswoman allegedly killed by husband, brother-in-law
  • Roxas suspended from golf club for outburst over P5,000 guest fee
  • SC reschedules oath-taking of new lawyers
  • Ex-COA chief seeks bail after arrest for plunder
  • Sports

  • Guiao fined P100,000 for ‘mongoloid’ comment vs Meralco forward
  • Hawks and Grizzlies revel in home wins
  • Floyd: Manny’s power gone
  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Plane lands at Bali airport in suspected hijacking—Indonesia air force
  • Obama lands in Seoul as N. Korea nuclear test fears grow
  • Militant protests vs Obama, US set
  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Marketplace