Lopez Holdings profit down 62% in 9 months

Media and power conglomerate Lopez Holdings Corp. said profit in the nine months through September sank 62 percent to P2.37 billion mainly due to the absence of a one-time gain related to an asset sale last year.

A filing at the Philippine Stock Exchange Friday also showed that the company posted a 10-percent decline in revenues to P6.85 billion as its power-generation subsidiary First Philippine Holdings saw a dip in the sale of electricity and merchandise.

Lopez Holdings, which also owns broadcast giant ABS-CBN Corp., sold a 2.66-percent stake in Manila Electric Co. in January last year for P8.85 billion. First Holdings also recorded a gain “on business combination” after Rockwell Land Corp. listed by way of introduction in November last year.

“We expect expenses at [First Philippine Holdings] and ABS-CBN to increase in the short term as they pursue investments consistent with their growth agenda,” Salvador Tirona, Lopez Holdings president and chief operating officer, said in a statement.

“We also expect them to continue providing superior value to their customers as the foundation of sustainable growth,” he added.

As of September 30, Lopez Holdings held a 56.6-percent economic interest in ABS-CBN and 46.2 percent in First Philippine Holdings.

Under recently adopted Philippine accounting standards, Lopez Holdings has de-consolidated ABS-CBN and now consolidates First Philippine Holdings in its financial statements. Comparative financial statements for 2012 have been restated to reflect the change. Miguel R. Camus

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