By Honey Madrilejos-Reyes
Reporter
HIGHER earnings from subsidiaries and affiliates, gains from share sales and lower financing expense fueled the 96-percent increase in the first-half net income of Ayala Corp. to P7.3 billion from P3.7 billion in the same period last year.
In a press statement, Ayala said equity in net earnings from subsidiaries and affiliates increased by 6 percent to P6.4 billion, but excluding one-time gains recorded in 2005, normalized growth would be 21 percent year-on-year.
Units Globe Telecom, Manila Water, and the Bank of the Philippine Islands (BPI) posted robust earnings growth during the period. Companies under AC Capital collectively contributed P1.6 billion in equity earnings, 8-percent lower year-on-year due to dilution gains in the first quarter of 2005. Excluding one-time gains, AC Capital’s contribution would be 63-percent higher compared to the previous year.
“The strong results during the period are reflective of the underlying positive signals in the broader economy, which has also been mirrored recently in renewed investor interest in the local equities market. We are encouraged by the relative stability of our economy and the continued strengthening of our government’s fiscal position,” said Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala.
The group’s property arm, Ayala Land Inc., posted consolidated profits of P1.9 billion, up 4-percent versus the first half of 2005. Excluding one-off transactions, net income would be up 38 percent year-on-year. Revenues grew across most business lines with revenues from residential development up 59 percent.
“Demand remained brisk across all residential products. Shopping-center revenues grew by 11 percent with increased gross leasable area and improved occupancy rates. The corporate business segment posted the highest revenue growth at 88 percent as a result of a sale of an office space. This was further enhanced by higher occupancy rates as well as the full contribution of its BPO buildings,” the group said.
BPI, meanwhile, earned a consolidated net income of P4.6 billion in the first semester, 7-percent higher than previous year’s P4.3 billion. Revenues grew at the same pace, fuelled by a 15-percent growth in noninterest income derived from foreign exchange and securities trading gains, rental income, asset management and trust fees.
Popular wireless unit, Globe Telecom, recorded a consolidated net income of P5.8 billion as consolidated net service revenues grew 6 percent year-on-year. Various value-based promotions encouraged greater usage and traffic, resulting in healthy net wireless subscriber growth. Globe’s wireless subscribers grew by 12 percent in the first half to 13.9 million from the 12.4 million at the end of 2005.
Meanwhile, companies under AC Capital contributed strongly to group earnings accounting for 25-percent of equity earnings as of the first half of the year. This was largely driven by Manila Water and Integrated Microelectronics Inc. (IMI).
Manila Water earlier reported a net income of P1.2 billion in the first half, 25-percent higher than the same period last year.
The strong performance was a result of higher water sales and customer base and the continued improvement in operating efficiency. The company further reduced nonrevenue water to 30.2 percent as of the end of the first half of the year, pushing billed volume to 933 million liters a day, 8-percent higher than year-end 2005 level and the highest ever recorded.
IMI also contributed strongly to AC Capital’s earnings with first half net earnings’ reaching P996 million, 69-percent higher than first half 2005 earnings of P590 million. IMI group revenues more than doubled to P10.1 billion as a result of the acquisition of Speedy-Tech, better performance of existing businesses, additional revenues from new businesses and higher contribution of its Cebu operations.
Listed at the Philippine Stock Exchange, Ayala Corp.’s stock price at the end of Monday’s trading was P425, 1.8-percent higher than Friday’s close.
http://www.businessmirror.com.ph/comp01.php
No comments:
Post a Comment