Ayala Corp first quarter income hits P2.45B, up 16%

MANILA, Philippines - Ayala Corp., the country’s oldest conglomerate, reported yesterday a higher net income in the first quarter of the year, buoyed by growth in its real estate, banking and telecom businesses.

In a disclosure to the Philippine Stock Exchange, Ayala said its first quarter net income grew 16 percent to P2.45 billion.

“This was driven by the robust revenue and earnings growth of its real estate business, the solid growth of its banking operations, the sustained turnaround of its telecom unit and healthy core earnings of its water business,” the company said.

These business units accounted for the bulk of equity earnings, with total equity earnings during the quarter up 16 percent year-on-year.

“We are pleased with the growth momentum of the majority of our domestic businesses,” said Ayala president and chief operating officer Fernando Zobel de Ayala.

Ayala Land Inc., the conglomerate’s property firm, reported first quarter earnings of P1.6 billion or 36 percent higher than the same period last year. This as revenues reached P10.6 billion, up 15 percent year-on-year, driven by robust residential and higher commercial leasing revenues.

Ayala Corp’s banking arm, Bank of the Philippine Islands, meanwhile, registered a first quarter net income of P2.9 billion, up four percent year-on-year.

The banking group’s revenues rose five percent, due mainly to higher interest income which rose 15 percent to P6.3 billion as average asset base expanded 12 percent.

Similarly, Globe Telecom sustained its turnaround and posted record quarterly revenues of P16.5 billion in the first quarter or eight percent higher year-on-year.

The company said growth came from the continued uptick in its mobile business as well as the sustained growth momentum of the broadband segment.

With the growth in the mobile segment, mobile revenues rose four percent, driven by a 10 percent growth in postpaid revenues and a two percent increase in pre-paid.

Broadband and fixed line revenues, meanwhile, grew 26 percent with broadband achieving a 52 percent increase year-on-year.

Globe’s mobile subscriber base further increased to 27.3 million, or a 14 percent expansion year-on-year while broadband subscribers rose 40 percent to nearly 1.2 million.

“Globe’s net income of P3 billion was the highest in the past seven quarters and was also 30 percent higher than the prior quarter,” it said.

Manila Water, on the other hand, reported a drop in net income of three percent to P816 million which Ayala Corp. attributed to mark-to-market losses realized on its bond.

“Excluding this, core income was up 14 percent to P1.2 billion,” it noted.

Ayala Automotive net income, meanwhile, fell 63 percent due to lower vehicle sales of its Honda dealerships, which declined 27 percent.

“Ayala’s Honda dealerships remained the market leader with a 46 percent share of network sales. Its Isuzu dealerships recorded a four percent growth in sales and registered a percentage point improvement in market share to 32 percent,” it said.

Ayala’s other businesses grew, including international businesses, the company also said.