JG Summit reports profit of P13.5 B in 2012
More News from Doris C. Dumlao
MANILA, Philippines—JG Summit Holdings Inc. grew its core net profit last year by 59.6 percent to P13.53 billion, aided by stable earnings from core operating units, treasury gains as well as dividends from its newly acquired interest in local telecom giant Philippine Long Distance Telephone Co.
But if one-time gains from the sale of telecom unit Digital Telecommunications Philippines Inc. were factored in JG Summit’s comparative 2011 results, net profit for 2012 declined by 37.1 percent, based on a disclosure to the Philippine Stock Exchange.
JG Summit said core earnings before taxes and extraordinary gains from the Digitel transaction in the comparative year had grown by 20 percent to P19.54 billion last year. Consolidated cash flow or earnings before interest, taxes, depreciation and amortization (EBITDA) reached P29.1 billion, 15.3 percent higher year-on-year.
When JG Summit gave up a controlling stake in Digitel in 2011, the share-swap portion of the deal allowed it to acquire an 8 percent interest in PLDT. Dividends from this interest in PLDT amounted to P2.95 billion last year.
At the same time, JG Summit said the continued appreciation of the peso against the US dollar and the recovery in the market value of its bond and equity investments, have all contributed to the earnings growth. Mark-to-market gains from financial assets amounted to P1.79 billion for 2012, a reversal of net market valuation loss of P655.49 million in 2011. The conglomerate also booked a foreign exchange gain of P1.4 billion last year versus the P245.88 million loss in the previous year.
Consolidated revenues grew by 9.5 percent to P135.25 billion as all subsidiaries posted “decent” growth alongside the dividends from PLDT, the conglomerate said. However, equity income from associates and joint ventures declined by 9.4 percent to P2.01 billion due to the lower income of Singapore-based affiliate, property developer United Industrial Corp. Ltd.
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