Lopez Holdings sees 27% rise in income

SCREENGRAB from lopez-holdings.ph

Lopez Holdings’ net profit in the first six months of the year grew by 27 percent year-on-year to P1.81 billion due to the strong performance of its power business.

First Philippine Holdings Corp. (FPH), where the conglomerate held a 46-percent interest, posted a 33-percent rise in net income to P2.53 billion during the period.

On the other hand, ABS-CBN Corp. registered a 23-percent decline in net income for the six-month period to P995 million in the absence of election-related advertising that buoyed earnings the previous year. However, its recurring net income increased by 44 percent. Lopez Holdings has a 56 percent interest in ABS-CBN.

“The continuing investments being made by our associates FPH and ABS-CBN are founded on a clear strategy for sustainable growth. FPH is on track to deliver clean and renewable energy that will support the country’s medium-term economic growth. ABS-CBN is poised to reap the benefits of its digital convergence strategy in the next 18 months. We are convinced that both investees will deliver on their commitments to their stakeholders,” said Salvador Tirona, Lopez Holdings president, chief operating officer and chief finance officer.

Lopez Holdings’ unaudited consolidated revenues increased by 6 percent year-on-year to P48.648 billion in the first semester. Subsidiaries helped in contributing more revenue, particularly the real estate (up by 41 percent), contracts and services (up by 7 percent) and merchandise (up by 44 percent) units. This was tempered by the 11-percent decline in ABS-CBN’s equity in net earnings.

Lopez Holdings managed to buy back some debt paper in the first semester. Other income, which rose by 228 percent, included P116 million in the reversal of the excess of carrying amount of obligation over the buyback price. Finance costs, which went up by 21 percent and the P470-million foreign exchange gain (compared to foreign exchange loss of P886 million year-on-year), were primarily FPH consolidated accounts.  Doris C. Dumlao