Conglomerate Ayala Corp. said Tuesday its first-quarter net income dropped 53 percent in the first quarter in the absence of one-time gains from sale of shares in the same period last year.

The profit dropped to P2.6 billion from P5.6 billion in the first quarter of last year, which included gains totaling P3.3 billion from the sale of shares in Ayala Land Inc., Globe Telecom Inc. and Bank of the Philippine Islands. Excluding these 2007 gains, the net income of P2.6 billion was up 11 percent year-on-year.

“The past couple of years presented unique opportunities to realize values from investments we have made in prior years,” Ayala Corp. president and chief operating officer Fernando Zobel de Ayala said. “Conditions for value realization are limited this year, given a more challenging operating environment.

“We believe, however, that current conditions may present opportunities for value creation and we continue to be on the lookout for value propositions that may arise from the fallout in global and domestic markets.”

Strong earnings from units in the property, telecom, water distribution, electronics and automotive sectors were partly offset by lower earnings from banking and from investments in the business process outsourcing sector, resulting in a seven-percent drop in equity earnings.

Property subsidiary Ayala Land posted a 42-percent year-on-year growth in first-quarter net income to P1.8 billion, as consolidated revenue grew 28 percent.

Growth was sustained across all of Ayala Land’s key businesses. Revenue from residential development rose by 19 percent with higher sales across all brands. Ayala Land Premiere, Community Innovations and Avida posted growth of nine percent, 25 percent and 37 percent, respectively. Overall take-up of residential units rose 17 percent.

Ayala Land shopping center revenue grew six percent with higher lease and occupancy rates. Earnings from the corporate business segment also rose by 17 percent, brought about by the sale of three hectares of property at the Laguna Technopark’s expansion phase, higher office occupancy rates and rental rates.

Bank of the Philippine Islands reported a 52-percent year-on-year drop in first-quarter net income to P1.5 billion with a 26-percent drop in revenue.

The bank’s net interest income dropped nine despitea P28-billion expansion of its asset base. Non-interest income fell 46 percent as rising interest rates provided limited opportunities to make securities trading gains. Net loans were up 14 percent, compared with the industry’s nine-percent growth.

Globe Telecom’s first-quarter net income rose 32 percent year-on-year to P3.4 billion. Net subscriber additions reached nearly one million, putting total wireless subscribers at more than 21 million at the end of the quarter. The fixed-line business grew six percent, driven by 73-percent and 15-percent growth in broadband and corporate data revenues, respectively.

The financial results of operating units under AC Capital were mixed. Integrated Microelectronics Inc. (IMI), Manila Water and Ayala Automotive reported healthy earnings growth but was negated by lower earnings of business process outsourcing units.

IMI’s net income rose by 48 percent year-on-year to $9.3 million with increased sales volume and reduced fixed operating expenses. Revenue grew 13 percent.

Manila Water net income amounted to P625 million, up 22 percent year-on-year. Revenue rose 16 percent to P2 billion on increased billed volume and continued improvement in non-revenue water. The company, which holds the concession for the eastern part of Metro Manila and some nearby areas, connected 10,000 new accounts to put total service connections at over 675,000. Costs and expenses rose by only four percent. Edited by INQUIRER.net