Lopez Holdings nets P13.17B

MANILA, Philippines - Lopez Holdings Corp. (formerly Benpres Holdings Corp.) reported a net income of P13.17 billion last year, up 10.7 percent from P11.9 billion in 2009, on the record performance of ABS-CBN Broadcasting Corp. and gains from asset sales.

Multimedia conglomerate ABS-CBN had a banner year in 2010, with net earnings surging 87 percent to P3.179 billion and revenues expanding 30 percent to P32.185 billion.

In a financial report submitted to securities regulators, Lopez Holdings said equity in net earnings jumped by 164.8 percent to P11.12 billion as affiliate First Philippine Holdings Corp. posted a net income of P24.85 billion, out of which 44.3 percent is held by the Lopez conglomerate. FPHC registered consolidated revenues of P64.3 billion with sale of electricity accounting for 82 percent.

FPHC completed the sale of a 6.6 percent stake in Meralco in March last year.

“FPHC investees in power generation and even in manufacturing are expected to provide stable income streams in the medium term. ABS-CBN is adapting well to the competitive environment in its industry and is continuously innovating to achieve further growth. Lopez Holdings will continue to support its associated companies to enhance value and provide balanced returns to all stakeholders,” said Lopez Holdings president Salvador G. Tirona.

Other income and expenses amounted to P2.735 billion, down 39.3 percent from the previous year’s P4.5 billion owing to lower gain on extinguishment of debt. 

In 2010, Lopez Holdings reported a gain on extinguishment of debt of P446 million compared to the gain of P7.52 billion in 2009. The gain on extinguishment of debt is due to the debt buyback made by the company in the past two years.

As part of its efforts to restructure its existing financial obligations, Lopez Holdings, subject to the availability of cash, has offered to buy back its debt at a discount to principal.  

As of end-December 2010, Lopez Holdings held a 57.3 percent economic interest in ABS-CBN and 44.3 percent in FPHC.

The conglomerate received a total P1.009 billion in cash dividends from ABS-CBN and FPHC based on their 2009 audited net income.