Meralco sale powers Benpres first quarter profit to P11 billion

MANILA, Philippines - Benpres Holdings Corp., the listed investment holding firm of the Lopez family, posted a net income of P11.023 billion in the first three months of the year, a reversal of the P176-million loss incurred in the same period in 2009.

Boosted by the sale of a 6.7-percent stake in Manila Electric Co., Benpres’ equity in net earnings of associates amounted to P10.56 billion, 92 times the P115 million recorded year-on-year.

Lower finance costs likewise contributed to the turnaround in the Lopez holding firm’s financial performance. Finance costs declined 16 percent to P360 million from P430 million due to lower debt levels, following a significant buyback in August 2009.

Unaudited consolidated revenues reached P7.75 billion, up 47 percent from P5.29 billion as associate ABS-CBN Broadcasting Corp. reported a 47 percent year-on-year increase in consolidated revenues as well as a six-fold hike in core net income. Rerecurring advertising revenues were up 45 percent while consolidated advertising revenues, including political and advocacy ads, jumped 83 percent.

“ABS-CBN’s performance is also expected to be sustained in the next 12 months as it continues to strengthen national ratings during this time that commercial ads are showing healthy growth. ABS-CBN offers both viewers and advertisers better value through an ever wider array of programming choices and delivery platforms for content,” said Benpres president Angel S. Ong.

Contributing to the marked improvement in Benpres’ financials was energy unit First Gen which reported a 166 percent surge in net income brought about by better results from geothermal firm Energy Development Corp. and lower financing costs. 

As of Dec. 31, 2009, Benpres held a 57 percent economic interest in ABS-CBN and 42 percent in First Philippine Holdings Corp.

Benpres is set to change its name to Lopez Holdings Corp., pending approval of shareholders at their annual meeting on June 10. The change will identify the company more clearly as part of the Lopez Group, a conglomerate committed to excellence in the service of all stakeholders.

Benpres was incorporated in 1993 by the Lopez family to serve as the holding company for investments in major development sectors such as broadcasting and cable; telecommunications; power generation and distribution; and banking. It added to its portfolio investments in other basic service sectors but has since sold its interest in banking, toll roads, information technology, property development and health care delivery.