The country’s oldest business house, Ayala Corp., posted P23.9 billion in net profit in the first nine months, up 3 percent year-on-year, driven by strong earnings from its real estate, telecom and power businesses.
In the third quarter alone, Ayala recorded a net income of P7.8 billion, 5 percent down from a year ago as the strong third quarter results of Ayala Land was offset by the weaker performance of AC Industrials.
Growth was also tempered by higher interest expense as Ayala borrowed more to support expenditures and investments.
Equity earnings rose by 9 percent year-on-year to P29.3 billion on contributions from Ayala Land and Globe, which grew by 17 percent and 16 percent, respectively. Contribution from AC Energy surged by 40 percent in the same period. The absence of service fees in AC Energy’s third quarter income this year weighed on earnings. In the same period a year ago, AC Energy booked services income from the financial close and construction of a power plant. Excluding transaction gains, third quarter 2018 net income grew 6 percent.
Ayala Land grew its nine-month net by 17 percent to P20.8 billion. Bank of the Philippine Islands posted a net income of P17 billion; Globe Telecom, P15.2 billion, while Manila Water posted profit of P4.9 billion.
AC Energy’s net earnings expanded by 39 percent to P2.8 billion in the first nine months. AC Industrials’ net income was 27 percent lower at P758 million due to the weaker performance of its automotive businesses and the start-up losses from new businesses.
The decline was partly offset by a one-time gain in its electronic manufacturing services arm. —DORIS DUMLAO-ABADILLA