Benpres turns around, posts P297-M profit in Jan-June

Boosted by gains from the sale of its investment in a listed telecommunications company, the Lopez-owned Benpres Holdings Corp. posted a net income of P297 million in the first half of this year, a reversal from the P191-million loss incurred in the same period last year.

Benpres registered unaudited historical revenues of P5.19 billion in the first six months of 2005, up 37 percent from the previous level of P3.79 billion. Net sales and services during the period expanded by 48 percent to P3.78 billion, primarily reflecting an improvement in the revenues of water utility unit Maynilad Water Services Inc.

Benpres booked a gain on the sale of its P8-million investment in Digital Telecommunications Phils. Inc. in April 2005.

Equity in net earnings of investees rose 36 percent on account of associate First Philippine Holdings Corp.’s equity in First Gen Corp.

Costs and expenses went up to P5.01 billion or 15 percent higher than the year ago level while provision for losses increased to P159 million from P38 million due to advance payment made by Benpres related to the BayanTel convertible preferred shares, which is a guaranteed liability under Benpres’ Balance Sheet Management Plan (BSMP).

Net consolidated interest expense surged 51 percent to P1.95 billion from P1.29 billion, attributable to Maynilad.

First Philippine Holdings Corp., on the other hand, reported a six percent drop in its profit to P1.97 billion. Revenues grew 23 percent to P25.18 billion while costs and expenses increased by 25 percent to P19.6 billion.

Benpres flagship ABS-CBN Broadcasting Corp. registered a two-percent growth in consolidated net revenues of P6.74 billion from P6.61 billion from a year ago. However, net profits fell 67 percent to P185 million from P560 million last year. EBITDA (earning before interest, taxes, depreciation and amortization) slid by 16 percent to P1.865 billion from P2.209 billion as cash expenses overtook revenue growth during the quarter.

Meanwhile, BayanTel reported continued growth in the first semester of 2005 after reporting significant growth in overall performance in 2004. Net revenues were nine percent higher at P2.908 billion compared to P2.663 billion last year. EBITDA stood at P1.29 billion, representing a 19-percent growth from the P1.08 billion posted during the same period in 2004.

Cash and cash equivalents decreased by 16 percent as a result of Benpres’ payment of semi-annual interest on debt based on the proposed terms of its Balance Sheet Management Plan. Short-term investments increased by 129 percent as Maynilad improved its collection efforts.

Benpres said bank loans decreased by 13 percent due to partial upfront payments made by Maynilad following the approval of its court-assisted rehabilitation.