Lopez Holdings nets P4.3B

CONGLOMERATE Lopez Holdings booked a 38-percent year-on-year growth in nine-month net profit to P4.35 billion as the group recouped impairment losses after unloading its telecommunication business.

Last July, Ayala-led Globe Telecom Inc. bought from Bayan Telecommunications Holdings Corp. and Lopez Holdings all their equity in Bayan Telecommunications Inc. valued at around P1.83 billion. This followed the conversion of Bayan debt into equity as provided under its corporate rehabilitation.

Following the closing of the Bayantel deal, Lopez booked partial recovery of impairment losses amounting to P1.5 billion, net of related expenses. After getting the clearance from Bureau of Internal Revenue and the transfer of shares to Globe, the remaining balance of 10 percent or P183 million was received.

Excluding non-recurring items, Lopez Holdings’ unaudited consolidated revenues for the nine-month period slipped by 4 percent year-on-year to P72.53 billion due to the decline in earnings from its power business.

Equity in net earnings of associates and joint venture increased by 28 percent year-on-year, buoyed by ABS-CBN, which posted a 23-percent growth in nine-month net income to P1.89 billion. The broadcasting arm was boosted by higher advertising revenues (+10 percent) and consumer sales (+13 percent) following the launch of ABS-CBN TV Plus, a digital box that provides clear reception for all free TV channels via digital transmission.

ABSCBN reported unaudited net revenues of P27.83 billion for the nine-month period, 11 percent higher year-on-year. Adversiting sales accounted for 55 percent of revenues during the period versus 56 percent in the previous year.

On the other hand, power unit First Philippine Holdings Corp. reported a 22-percent year-on-year decrease in net income to P3.7 billion. Revenues for the period edged lower by 4 percent to P71.23 billion. Sale of electricity accounted for 88 percent of revenues compared to 85 percent in the same period last year.

Overall, FPH’s sale of electricity dipped by 4 percent while earnings from real estate as well as contracts and services were down by 22 percent. Sale of merchandise rose by 22 percent.

Lopez Holdings holds a 56 percent economic interest in broadcasting giant ABSCBN and 46 percent in FPH.