MANILA, Philippines—The Ayala group’s water distribution unit Manila Water Co. Inc. reported Friday a net income of P1.35 billion in the first half of the year, up 21 percent from the same period in 2007.

The company, which holds the water concession for the eastern zone of Metro Manila and some nearby areas, said the profit increase was largely the result of its P25-billion capital investment program, which it said allowed it to expand and improve its delivery of water and wastewater services.

It said revenues grew to P4.3 billion from P3.5 billion. Overall operating costs grew 3.6 percent.

Manila Water said it connected 25,000 new customers in the first half of the year, largely in its expansion areas in Rodriguez town and Antipolo City. It said these additions contributed to a 6.0-percent increase in billed water volume.

It said it brought down “non-revenue water”—water lost to leaks and pilferage— by 43 percentage points from a high of 63 percent of total volume 10 years ago. Edited by INQUIRER.net