Ayala Corp profit surges 49% to P12.2B

Conglomerate Ayala Corp. reported a 49-percent jump in its net profit to P12.2 billion last year, largely due to the strong performance of its subsidiaries and affiliates, lower interest expense, and gains from asset sales.

Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala said: “We are pleased with the record performance this year. The fundamentals are in place for sustained economic recovery and growth. Key sectors of the economy are presenting opportunities that are creating multiplier effects on other industries. The Ayala Group is well-positioned to participate in this growth momentum and is pursuing new business models to accelerate growth moving forward.”

Property unit Ayala Land Inc. posted a net income of P3.9 billion last year or an increase of seven percent from the previous year. Consolidated revenues, on the other hand, rose 20 percent due to heightened activity across most business lines.

As for its banking business, Bank of the Philippine Islands (BPI) reported a net income of P9 billion, up eight percent from the year ago level as revenues expanded by nine percent on higher net interest and non-interest income. Total resources amounted to P582 billion by year-end, with deposits up 11 percent to P467 billion.

Globe Telecom, meanwhile, earned P12 billion last year, 14 percent higher than the year earlier on an increased subscriber base of 26 percent or a total of 15.7 million clients.

AC Capital contributed significantly to the group accounting for 20 percent of equity earnings. Manila Water and Integrated Microelectronics were the main drivers.

Manila Water achieved record net income of P2.4 billion, 19 percent higher than the previous year. The solid financial performance is attributed to the company’s continuous operational improvements and commitment to improve water and wastewater services. System losses during the year hit another all-time low while billed volume rose by 10 percent to 948 million liters per day, the highest in the past five years.

Electronics subsidiary Integrated Microelectronics Inc. (IMI) posted net income of $33 million, 28 percent higher than the previous year with revenues reaching $393 million. This strong performance was underpinned by the continued rise in global demand for electronic products.

IMI continues to focus on the full integration of Speedy-Tech operations and processes and is on the look out for acquisition opportunities that will further enhance its engineering and design capabilities.

With the strong financial position of its operating units, Ayala continues to pursue new investments. Ayala has been aggressively expanding its investments in the business process outsourcing sector with recent purchase of Affinity Express, a US-based design and graphics outsourcing company.

LiveIt Solutions, Ayala’s holding company for its BPO investments, has invested a total of $62 million since it began in July 2006. Prior to this acquisition, it acquired a majority stake in Integreon Managed Solutions, a US-based document process and knowledge process outsourcing company with delivery centers in the US, UK, and India and an 11 percent stake in eTelecare Global Solutions.

Ayala president and chief operating officer Fernando Zobel de Ayala said: “We are excited with these new investments as we create a platform for future growth and value enhancement for the group. We believe these investments have a strong potential to leverage on the strengths of the Philippines in this sector given our country’s unique advantages to excel and be competitive in this industry.”