Lopez Holdings 2017 profit down 36%

Conglomerate Lopez Holdings posted a net profit of P4.22 billion last year, down by 36 percent in the absence of one-off gains and election season-related surge in media advertising revenue that jacked up its bottom line in 2016.

Energy unit First Philippine Holdings (FPH) booked a 41-percent drop in net income to P5.85 billion. FPH reported non-recurring income in 2016 pertaining to the arbitration settlement received by First Philec and the liquidated damages collected by First Gen Corp. for its San Gabriel power plant.

Broadcasting arm ABS-CBN also posted a 10-percent drop in net income to P3.16 billion in the absence of election-related advertising revenue. ABS-CBN generated more revenue in 2016 from political advertising on top of improved earnings from its Pay TV and new businesses.
Lopez Holdings’ consolidated revenue rose 14 percent to P104.89 billion, reflecting higher electricity sale of First Gen.

Taking out non-recurring items, FPH’s core net income last year was P6.83 billion, 15 percent higher than year ago level.

FPH’s revenue from real estate grew by 11 percent while sale of merchandise also rose by 3 percent. Revenue from contract and services, however, declined by 10 percent.

ABS-CBN’s revenue hit P40.7 billion, down by 2 percent from a year ago. Consumer sales grew by 9 percent but the share of advertising sales to total revenue eased to 52 percent from 57 percent in 2016.

As of end-2017, Lopez Holdings owned 46 percent of FPH and 56 percent of ABS-CBN.

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