In a statement issued yesterday, AC attributed its impressive performance to higher capital gains with AC Capital contributing P1.06 billion in equity in net earnings, 2.6 times higher than the previous year’s level.
Consolidated equity in net earnings of associates, interest, rental and other investment income went up 28 percent to P4.81 billion due to the significantly strong performance of Globe Telecom and Bank of the Philippine Islands (BPI).
Globe Telecom posted a net profit of P6.9 billion during the first six months or an increase of 58 percent from the same period a year ago. Net operating revenues inched up 16 percent to P27.6 billion as total subscriber base hit over 10.5 million mark at end-June as a result of enhanced product offerings and increased network coverage.
BPI, AC’s banking arm, reported a 32 percent increase in net income for the period under review to P3.5 billion, primarily due to higher revenues and improved margins.
Net interest income climbed 23 percent as net interest margins averaged 4.4 percent compared with 3.7 percent for the same period last year. The bank’s total resources as of end-June reached P430 billion as both loans and deposits expanded four percent to P337 billion and P213 billion, respectively.
As for its property concern, Ayala Land, Inc. posted profits of P1.18 billion or an improvement of seven percent with revenues reaching P8.1 billion on brisk sales across all its product lines. Rental revenues from retail operations were buoyed by the opening of Greenbelt 4 in the first quarter, more aggressive promotional efforts and continuous enhancement in merchant mix.
Manila Water Co. (MWC) and Integrated Microelectronics, Inc. (IMI) continued to account for the bulk of AC Capital’s earnings contribution. MWC earned P650 million in the first half of the year, five percent higher year-on-year as average billed volumes improved three percent to 777 million liters per day despite a slight drop in average water supply.
Profits of IMI nearly doubled to P531 million, already 83 percent of its 2003 full-year net income of P638 million. The company continues to benefit from increased outsourcing volumes from Japanese electronics companies, which account for nearly two-thirds of IMI’s production orders.
AC Capital’s contribution was also boosted by the P366 million in net income recorded by Ayala International Pte. Ltd. for the first semester, following the profitable sale in April of its joint venture investment in the award-winning Grosvenor Place, a residential high-rise development in Repulse Bay in Hong Kong. – Zinnia dela Peña