Lopez Holdings nets P1.9B

Power and media-based conglomerate Lopez Holdings grew its six-month net profit by 8 percent year-on-year to P1.95 billion.

Growth, according to the group, was driven by the strong performance of broadcasting arm ABS-CBN Corp.

In a statement issued Monday, the Lopez group said consolidated revenue in the first half rose by 1 percent year-on-year to P49.255 billion.

Equity in net earnings of associates and joint venture increased by 27 percent year-on-year reflecting the continued strengthening of ABS-CBN operations, the holding firm said in a regulatory filing.

ABS-CBN saw a 20-percent year-on-year increase in six-month net income to P1.197 billion, driven by solid airtime revenues and sale of goods following the commercial launch of ABS-CBN TV Plus in February 2015. Net revenue rose by 8 percent from year-ago level to P17.74 billion. Advertising sales accounted for 53 percent of total revenue during the period.

In the meantime, changes in the sale of electricity (+3 percent), real estate (-23 percent), contracts and services (-6 percent), and merchandise (+13%) reflected the performance of operating units held by power unit First Philippine Holdings Corp. (FPH).

FPH reported a 5-percent year-on-year increase in first semester net income to P2.65 billion on the back of a 1-percent growth in revenue to P48.42 billion.

Sale of electricity accounted for 89 percent of revenue. FPH’s associates contributed to higher finance costs and foreign exchange losses of P250 million as the peso weakened against the dollar during the period in review.

As of end-June, Lopez Holdings held a 56-percent economic interest in ABS-CBN and a 46-percent stake in FPH.

In July 2015, Ayala-led Globe Telecom agreed to purchase from Bayan Telecommunications Holdings Corp. and Lopez Holdings all equity they held in Bayan Telecommunications Inc. (Bayantel) valued at about P1.83 billion. The effect of this transaction will be reflected in the interim financial statements covering the third quarter of this year, the holding firm said.

For the period in review, Lopez Holdings said the financial performance of investees, from which it was receiving dividends, was within expectations.

In the first half, Lopez Holdings received cash dividends of P543 million, of which P289 million came from its investment in Philippine depositary receipts and P254 million from its common shares of FPH, the same levels as in the first half of 2014.