Ayala net profit up 20% to P7.3B

Ayala Corp. grew its first-semester net profit by 20 percent to P7.3 billion, led by the robust earnings of its property and banking units.

Higher earnings of its water subsidiary and improved performance of its business process outsourcing (BPO) business likewise contributed to profits during the period.

Taking out the impact of accelerated depreciation resulting from the network modernization of Globe Telecom, Ayala’s core net income rose 42 percent year-on-year to P8.9 billion in the first six months.

“The first half broadly turned out as expected as we sustained growth momentum across our key businesses. Our core businesses made great strides in growth and expansion while our international businesses continued to improve,” Ayala president Fernando Zobel de Ayala said in a statement. “We are confident this strong performance will carry on this year. The encouraging macroeconomic conditions continue to present opportunities for further investment and we will continue to take advantage of these moving forward.”

Share of revenues from Ayala’s BPO unit LiveIt Investments reached $190 million, up 15 percent year-on-year, while share of cash flow or earnings before interest, taxes, depreciation and amortization (Ebitda) stood at $16.3 million, up 21 percent, due primarily to higher revenues and improved profitability at Stream and Affinity Express.

Ayala’s equity earnings summed up to P9.5 billion, 24 percent higher year-on-year. Consolidated revenues likewise increased by 21 percent to P74.6 billion over the same period.

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