Benpres incurs net loss of P176 million in first quarter on higher costs

MANILA, Philippines – Weighed down by higher expenses of its subsidiaries, Lopez flagship firm Benpres Holdings Corp. incurred a net loss of P176 million in the first quarter this year, a reversal of the P60-million net profit reported in the same period a year ago.

In a financial report submitted to securities regulators, Benpres said its unaudited consolidated revenues of P5.289 billion increased 24 percent from the P4.26 billion recorded a year earlier.

Unaudited consolidated expenses, however, rose 32 percent to P5.22 billion from P3.95 billion, due to the 60-percent decline in equity in net earnings of First Philippine Holdings Corp. and the 45-percent increase in general and administrative expenses and 56 percent jump in costs of sales and services of ABS-CBN Broadcasting Corp.

Benpres said foreign exchange adjustments resulted in a loss of P202 million, 156 percent higher than the P79 million forex loss in the first three months last year.

FPHC ‘s net earnings slid 33 to P178 million from a restated P265 million in the first quarter of 2008, largely due to loss in earnings contribution from the toll roads business via First Philippine Infrastructure Inc. FPHC sold its stake in FPII in 2008.

Media giant ABS-CBN reported a 22 percent drop in net profit during the period under review from P243 million to P189 million. Revenues expanded 24 percent to P5.29 billion from P4.27 billion, powered by a 91-percent jump in sale of services with the consolidation of SkyCable. The consolidation of SkyCable, however, also led to an increase of 28 percent in total expenses to P4.95 billion from P3.88 billion.

SkyCable posted a net loss of P25 million as against a net profit of P72 million as it continued to invest heavily in the rollout of its ground-breaking SkyBroadband offering, even as programming costs rose 27 percent following the depreciation of the peso during the period.

BayanTel, on the other hand, trimmed its net loss to P464 million from P556 million as revenues improved five percent to P1.64 billion from P1.56 billion.

Meanwhile, Rockwell Land Corp. reported a 12 percent drop in net earnings to P158 million as revenues fell 40 percent in the first quarter to P812 million following generally soft residential sales. Bulk of revenues still came from sales of One Rockwell, while retail operations grew 11 percent.

As of end-March this year, Benpres had total assets of P56.86 billion, up three percent from the previous level.