Lopez Holdings posts 38% growth in 9-mo income

Conglomerate Lopez Holdings booked a 38-percent year-on-year growth in nine-month net profit to P4.35 billion as the group recouped impairment losses after unloading its telecommunication business.

Last July, Ayala-led Globe Telecom Inc. agreed to buy from Bayan Telecommunications Holdings Corp. and Lopez Holdings all their equities in Bayan Telecommunications Inc. (Bayantel), valued at around P1.83 billion. This followed the conversion of Bayan’s debt into equity, which was provided under a court-assisted rehabilitation.

Following the closing of the Bayantel deal, Lopez booked a partial recovery of impairment losses amounting to P1.5 billion, net of related expenses. After getting clearance from the Bureau of Internal Revenue and the transfer of shares to Globe, the remaining balance of 10 percent or P183 million was received.

Excluding non-recurring items, Lopez Holdings’ unaudited consolidated revenues for the nine-month period slipped by 4 percent year-on-year to P72.53 billion due to the decline in earnings from its power units.

Equity in net earnings of associates and joint ventures increased by 28 percent year-on-year, buoyed by ABS-CBN Corp., which posted a 23-percent growth in nine-month net income to P1.89 billion. The broadcasting arm’s gains were boosted by higher advertising revenues (plus 10 percent) and consumer sales (plus 13 percent) following the launch of ABS-CBN TV Plus, a digital box that provides clear reception for all free TV channels via digital transmission.

ABS-CBN reported unaudited net revenues of P27.83 billion for the nine-month period, 11 percent higher year-on-year. Advertising sales accounted for 55 percent of revenues during the period versus 56 percent in the previous year.

On the other hand, power unit First Philippine Holdings Corp. (FPH) reported a 22-percent year-on-year decrease in net income to P3.7 billion. Revenues for the period edged lower by 4 percent to P71.23 billion. Sale of electricity accounted for 88 percent of revenues compared to 85 percent in the same period last year.

Overall, FPH’s sale of electricity dipped by 4 percent while earnings from real estate as well as contracts and services were down by 22 percent. Sales of merchandise rose by 22 percent.