The country’s oldest conglomerate Ayala Corp. grew its net profit in the first semester by 7 percent year-on-year to P16.1 billion driven mostly by its real estate, telecommunications and power businesses.
In the second quarter alone, Ayala recorded a net income of P8.4 billion, up 3 percent year-on-year, thanks to Ayala Land and AC Energy, which posted transaction gains from various initiatives. Lower fee-based income and higher operating expenses recorded by the Bank of the Philippine Islands (BPI) tempered net earnings during the quarter.
Six-month equity earnings of the conglomerate reached P19.5 billion, 12 percent higher from a year ago on robust contributions from Ayala Land and Globe Telecom, which climbed 18 percent and 25 percent, respectively. AC Energy’s equity earnings contribution also more than doubled in the first semester from the same period last year.
“These results validate our long-term strategy to achieve a more resilient portfolio by allocating capital to new businesses from which we can derive fresh sources of growth while continuing to expand our core businesses,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
“With the steady state operations of its platforms and consistent value realization initiatives, we are happy to see AC Energy starting to provide the necessary balance to some of our more cyclical and longer gestation businesses,” Zobel noted.
It was earlier reported that Ayala Land had expanded its first semester net profit by 18 percent year-on-year to P13.5 billion due to its residential segment and commercial leasing business.
BPI reported a net income of P11.03 billion for the first half, 5.7 percent lower year-on-year, as lower non-interest income and higher operating expenses offset growth.
Globe Telecom chalked up a core net income of P10.3 billion in the first semester, up by 29 percent year-on-year.
Manila Water recorded a net income of P3.6 billion, up 10 percent. AC Energy’s net earnings expanded by more than twofold to P2.1 billion.