Benpres posts P2-M income in Q1

Benpres Holdings Corp. (BHC) posted higher revenues in the first quarter of 2002, but its earnings level barely broke even with a mere P2 million net income during the period as costs and expenses ballooned and its subsidiaries reported lower profits.

Financial statements filed with the Securities and Exchange Commission showed BHC reporting a 69 percent increase in its revenues to P481 million mainly due to higher contribution from its energy subsidiary, First Philippine Holdings Corp., the write-off of its investments in telecom unit Bayantel last year, and the booking of some recovery from a rise in the market value of its investments in Digitel, the telecom arm of the JG Summit group.

Although BHC registered a P214 million decline in the accretion of its earnings on its floated notes, the company said it will not reflect any more losses arising from Bayantel until it recognizes the remaining P5 billion guaranteed liability from the convertible preferred shares issued by Bayantel.

In 2001, BHC set up a provision for the decline in the value of its investments in, and advances to, Bayantel, its biggest losing subsidiary, including recognition of its liability that may arise from its guarantee and commitments amounting to P9.9 billion in 2001 and P1.35 billion in 2000.

Despite the meager P2-million income, the figure was turnaround from the P362-million loss BHC incurred in the same period last year.

Weighing down on BHC’s performance was ABS-CBN Broadcasting Corp., the flagship of the Lopez firms, which registered net income of P3.82 million, a huge 99 percent year-on-year decline. The drop in net income was mainly due to the decline in airtime revenues as well as the increase in depreciation costs, interest charges and, the occurrence of other one-time and new cost items during the period.

ABS-CBN as of the end of the first quarter this year had total consolidated assets of P23.28 billion, with an interest-bearing debt-to-equity ration of 47 percent.

FPHC still continues to perform well given the revenue contributions of First Generation Holdings Corp. (First Gen). Revenues amounted to P5 billion for the period as compared to the same period last year of P4.2 billion. The 20 percent revenue increase was primarily due to the revenue contribution of FPHC’s power generating assets. Net income, however, declined by 24 percent from the same period last year to P413.9 million which was primarily due to the decrease in net income of power distributor Meralco.

As of the period ended March 31, 2002, Benpres’ total assets amounted to P31.905 billion as compared to same period last year of P38.885 billion. The decline in asset base is mainly due to the decline in the cash and cash equivalent account.

Aside from Bayantel, ABS-CBN and FPHC, BHC’s other subsidiaries and affiliates include Maynilad Water Services Inc., Rockwell Land, Beyond Cable, and Meralco, among others. – Conrado Diaz Jr.