Ayala Corp. nets P5B in Q1, down 8% | Inquirer Business

Ayala Corp. nets P5B in Q1, down 8%

core profit up by 39%
By: - Business Features Editor / @philbizwatcher
/ 01:53 PM May 13, 2015

Ayala Corp

SCREENGRAB from www.ayala.com.ph

CONGLOMERATE Ayala Corp. chalked up P5 billion in first quarter net profit, down by 8 percent year-on-year as the comparative earnings last year included non-recurring gains from the sale of shares in a business process outsourcing (BPO) unit.

Without the effect of the P1.8 billion divestment gains from its BPO business in 2014, Ayala’s first quarter core earnings jumped by 39 percent year-on-year. The increase in core profitability was attributed to sustained positive momentum in its real estate, banking, telecom, and electronics manufacturing businesses while new businesses, particularly power generation, moved to execution phase.

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“We continue to be encouraged by the strong performance of the businesses across the group. We remain optimistic that we can sustain the strong first quarter results throughout the rest of the year, and stay on track to meet our strategic goals and financial targets,” Ayala president and chief operating officer Fernando Zobel de Ayala said in a press statement on Wednesday.

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The positive earnings momentum in the first quarter was further reflected by the 11 percent sequential growth from the strong fourth quarter results in 2014.

Various operating units contributed a total of P6.4 billion in equity earnings, 27 percent higher year-on-year in the first quarter. Compared to net income inclusive of the net divestment gain in the same period last year, equity earnings declined by 7 percent.

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In real estate, Ayala Land, booked a 19 percent growth in net earnings to P4.1 billion, boosted by a 13 percent growth in real estate revenues.

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In banking, Bank of the Philippine Islands posted a 36-percent year-on-year growth in first quarter net income to P4.9 billion.

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In telecommunications, Globe Telecom’s bottomline grew by 43 percent over the same period last year to P4.2 billion. Gross service revenues increased by 13 percent driven by growth in data revenues across all major service lines.

In electronics manufacturing services, Integrated Microelectronics Inc. reported an increase in net profit to P288 million vis-à-vis its first quarter last year on better margins, cost savings and improved productivity.

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The strong performance of these real estate, banking, telecom and manufacturing units counterbalanced results from the remaining businesses in the portfolio. In utilities, Manila Water Co. Inc. reported a flat net income at P1.4 billion, with stronger billed volume levels offsetting higher operating expenses.

In power generation, Ayala said recent investments in power had come into fruition and started operations. In April, AC Energy Holdings Inc. secured the feed-in-tariff for the 81-megawatt (MW) wind farm of the North Luzon Renewable Energy Co. and the 19-MW expansion of Northwind Power Development Corp. In addition, AC Energy commenced commercial operations for the first 135-MW unit of South Luzon Thermal Energy Corp. in April.

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TAGS: AC, ayala corp., Profit

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