CONGLOMERATE Ayala Corp. said its net income expanded 7 percent in the first half of the year to P16.06 billion, up from last year’s P15.05 billion.
This was lifted by the solid performance of its real-estate, telecommunications and power businesses.
For the second quarter alone, the company recorded a net income of P8.4 billion, up by a mere 3 percent from last year’s P7.99 billion, as the lower fee-based income and higher operating expenses recorded by the Bank of the Philippine Islands (BPI) tempered its net earnings.
“These results validate our long-term strategy to achieve a more resilient portfolio by allocating capital to new businesses from which we can derive fresh sources of growth while continuing to expand our core businesses,” Ayala President and Chief Operating Officer Fernando Zobel de Ayala said.
“With the steady state, operations of its platforms and consistent value realization initiatives, we are happy to see AC Energy starting to provide the necessary balance to some of our more cyclical and longer gestation businesses,” Zobel said.
Ayala Land Inc.’s net income grew 18 percent to P13.5 billion, from last year’s P11.5 billion, primarily driven by its residential segment, supported by the commercial leasing business.
BPI reported a net income of P11.03 billion for the first half of 2018, 5.7 percent lower year-on-year, as lower noninterest income and higher operating expenses offset growth in the bank’s core business.
Globe Telecom Inc.’s income grew 26 percent to P5.45 billion, from last year’s P4.32 billion, as service revenues grew 9 percent.
Manila Water Co. Inc., the east zone concessionaire, recorded a net income of P3.6 billion in the first half, 10 percent higher, from the previous year’s P3.21 billion on higher billed volume.
AC Energy’s net earnings expanded more than double to P2.1 billion in the first semester, bolstered by the solid performance across its wind, geothermal and thermal platforms. This was underpinned by services income derived from the financial close of a new power plant. Excluding the services income, AC Energy’s net profits jumped 59 percent in the first half.
AC Industrials’s income climbed 2 percent higher year-on-year to P752 million, supported by a one- time gain by its electronic manufacturing services arm, but dragged by lower net income of its automotive retail segment.
In automotive retail, net income fell to P119 million due to weaker sales of Honda and Isuzu, partly driven by tempered consumer demand from higher automobile excise taxes. Further contributing to the decline was the timing of recognition of Isuzu Philippines Corp.’s dividends recorded in the first half of 2017, but will only be recorded in the third quarter of this year. Meanwhile, revenues from Volkswagen and KTM improved from the previous year.