Lopez Holdings Q1 profit surges 192%

Lopez Holdings Corp. jacked up its net profit in the first three months by 192 percent year on year to P2.63 billion, boosted by the earnings of associate First Philippine Holdings Corp., which booked a one-time gain from the sale of additional shares in Manila Electric Co. and likewise grew earnings from power generation.

In a statement, Lopez said equity earnings in associates jumped by 826 percent year on year during the period to P2.42 billion after FPH’s sale last January of 30 million shares of Meralco equivalent to a 2.66-percent stake.

Unaudited consolidated revenues increased by 8 percent year on year to P7.15 billion, which Lopez attributed to associate ABS-CBN Corp.’s lead in national primetime TV ratings as well as the latter’s implementation of higher advertising rates beginning February.

“Outside of election-related spending, we have not seen any significant expansion in Philippine ad spending for many years. This is why it was important for ABS-CBN to develop its consumer sales business. This business grew faster in the first quarter at 15 percent, compared to advertising revenues which grew 4 percent,” Lopez president chief operating officer and chief finance officer Salvador G. Tirona said in a press statement.

“As for FPH, its recurring net income increased by 164 percent showing the strength of its power generation portfolio. It is clear that earlier investments made by both ABS-CBN and FPH are now bearing fruit,” added Tirona.

Lopez held a 60.3-percent economic interest in ABS-CBN and 46.6 percent in FPH as of end-2011.

ABS-CBN posted a 69-percent year-on-year decline in net income to P306 million in the first quarter compared to the comparative level last year.

Removing the effects of the one-time gain from the sale of SkyCable Philippine Depositary Receipts booked last year, net profit would have increased by 1 percent.

FPH posted an increase of 639 percent in net income to P5.2 billion in the first three months, primarily due to a P3.34-billion gain from sale of 2.66 percent of Meralco.

Without the gain on sale of Meralco, FPH’s net income was still 164 percent higher primarily due to a 171 percent year-on-year increase in equity in net earnings to P1.72 billion as associate First Gen Corp. unlocked more values from its investments in geothermal energy development.

FPH grew its revenues by 21 percent year on year to P19.77 billion.

Meanwhile, finance costs decreased by 31 percent to P153 million from the same level last year due to lower debt levels.—Doris C. Dumlao