MANILA, Philippines - Lopez Holdings Corp. (fomerly Benpres Holdings Corp.) said its net earnings hit P11.38 billion in the first half of the year, almost 24 times the P475 million recorded in the same period a year ago, on asset sales of its units.
Equity in net earnings of associates surged to P10.64 billion from only P474 million following the sale by First Philippine Holdings Corp. (FPHC) of its 6.7-percent stake in power utility giant Manila Electric Co.
Unaudited consolidated revenues grew 44 percent to P16.84 billion, mainly driven by the impressive performance of associate ABS-CBN Broadcasting Corp. which saw its earnings rise 179 percent on strong advertising minutes growth for flagship TV station Channel 2.
FPHC chalked in a net income of P24.91 billion as it posted a P23.6-billion combined gain on the sale of Meralco shares to Beacon Electric Asset Holdings and the mark-to-market restatement of its remaining 6.6-percent stake in Meralco.
Without the gain on sale, FPHC’s net income would have been P1.3 billion, up 53 percent from last year’s restated net profit of P849 million, due to the surge in earnings contribution of its subsidiaries.
“This tells us that investments made in earlier years by FPHC, and by ABS-CBN for that matter, are now giving us the expected returns. With their strategic directions clearly set at the operating company level, we know that both FPHC and ABS-CBN can sustain their solid performance for the rest of the year,” said Lopez Holdings president Salvador G. Tirona.
As of Dec. 31, 2009, Lopez Holdings held a 57 percent economic interest in ABS-CBN and 42 percent in FPHC.
Telco unit Bayan Telecommunications, however, said its net losses widened by nine percent to P666 million due to foreign exchange losses. Core revenues likewise declined by five percent to P3.02 billion.
Lopez Holdings 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.