Benpres earnings drop 45% in 2008

MANILA, Philippines – Benpres Holdings Corp., the listed investment holding firm of the Lopez family, reported a 45 percent decline in net earnings to P2.93 billion last year, largely due to foreign exchange losses.

In a financial report filed with the Philippine Stock Exchange, Benpres, however, said its revenues rose 12 percent to P22.31 billion from P19.89 billion a year earlier. 

But its foreign exchange losses amounted to P2.21 billion, a reversal of the foreign exchange gains of P3.24 billion in 2007.

The peso depreciated against the dollar in 2008, closing the year at 47.52, from 41.28 at the end of 2007 and 49.03 at the end of 2006.

As a holding company, Benpres receives revenues from asset sales and dividends from investees companies.

Equity in net earnings of associates plunged 77 percent to P650 million from 2007’s P2.84 billion, as energy unit First Philippine Holdings Corp. (First Holdings) posted a 73 percent decline in profits on the back of high finance costs related to its higher debt levels during the year, as well as foreign exchange losses.

Benpres gained P3.33 billion from the sale of its 49 percent stake in First Infrastructure Development Corp., the corporate vehicle for Manila North Tollways  Corp. (MNTL).

Generally low interest rates paid on debt in 2008 led to the four percent decline in finance costs and 11 percent increase in interest income.

Multimedia subsidiary ABS-CBN’s net income remained strong at P1.39 billion, nine percent higher than the P1.27 billion recorded in 2007. Despite weak TV adspend, ABS-CBN’s airtime revenues were flat, shedding just one percent year-on-year to P13.51 billion from P13.60 billion.

Net earnings of First Holdings likewise fell 73 percent to P1.19 billion as consolidated revenues fell from P78.57 billion to P55 billion. 

Telecommuncation arm Bayan Telecommunications Inc. (Bayan) registered total revenues of P6.32 billion, 15 percent higher than P5.52 billion the previous year. Earnings before interest, taxes, depreciation and amortization or EBITDA increased 75 percent to P1.1 billion.  

Sky Cable Corp. posted a net income of P112 million, down 37 percent from P178 million, mainly driven by higher financing costs and due also to significant investments in deploying its digital platform which affected its depreciation expenses. Consolidated EBITDA, however, grew to P911 million from P874 million.

Upscale property developer Rockwell Land Corp. reported a 27 percent jump in net profit to P603 million even as its revenues were flat at P3.51 billion. This was attributed to a strong growth in residential condominium sales which accounted for 80 percent of total revenues. The balance was contributed by retail and cinema operations. 

As of Dec. 31, 2008, Benpres had total assets of P55.68 billion, 15 percent higher than P48.35 billion as of end-2007.

Interest-bearing loans and borrowings increased 27 percent, representing unrealized foreign exchange losses, as the principal debt was revalued at a less favorable peso-dollar rate as of end-2008.

Total stockholders’ equity at yearend stood at P16.62 billion from P16.15 billion while retained earnings grew more than four times to  P3.746 billion from P819 million.