Conglomerate Lopez Holdings saw a 34 percent year-on-year decline in first semester net profit to P1.76 billion on one-off items booked by its power generation unit alongside slower earnings from its broadcasting business.
The decline in earnings was primarily attributed to one-off losses and the absence of one-off gains at its associate First Philippine Holdings Corp. (FPH).
On the other hand, unaudited consolidated revenues increased by 17 percent year-on-year to P51.48 billion on higher earnings from the sale of electricity, real estate and sale of merchandise. However, consolidated costs and expenses grew at a faster pace of 19 percent to P38.157 billion due to increases in the cost of sale of electricity, real estate, merchandise sold as well as most of general and administrative expenses.
Six-month net profit of FPH fell by 28 percent year-on-year to P2.51 billion. It booked one-off losses totalling P1 billion related to the debt retirement of its operating units this semester while P1.3 billion liquidated damages from a contractor buoyed earnings in the comparative period last year. The absence of such one-off gain, higher finance costs and unfavorable foreign exchange movement led to the decline in first semester income.
Excluding foreign exchange and other non-recurring items, FPH’s consolidated recurring net income increased by 14 percent due to higher profits from energy, real estate and manufacturing units.
Meanwhile, broadcasting arm ABS-CBN Corp. also saw a 41-percent year-on-year decrease in first semester net income to P1.26 billion. Coming from a high base last year, which was a presidential election year, ABS-CBN’s airtime revenues decreased by 21 percent year-on-year while total costs and expenses decreased by 2 percent.
As of end-June, Lopez Holdings owned 46 percent of FPH while it had a 56 percent economic interest in ABS-CBN.