Lopez Holdings earnings drop 70%

MANILA, Philippines - Lopez Holdings Corp. posted a net income of P3.955 billion last year, down 70 percent from the P13.175 billion recorded in 2010 which was propped up by gains from the sale of shares in power utility giant Manila Electric Co. (Meralco).

In a financial report submitted to the Philippine Stock Exchange, Lopez Holdings said net revenues declined 10 percent to P25.047 billion due to lower earnings from its affiliates.

Multi-media conglomerate ABS-CBN registered on earnings drop of 25 percent to P2.4 billion due to the absence of political advertising revenues.

First Philippine Holdings Corp., posted a net profit of P2.12 billion as against P24.85 billion the previous year when it sold a 6.6 percent stake in Meralco.

“ABS-CBN operates in a fiercely competitive market, but continues to make significant investments toward future growth. At the same time, FPH is expanding its renewable energy portfolio through First Gen. We believe their clear strategic directions will allow Lopez Holdings to provide sustainable returns to shareholders over the long term,” said Lopez Holdings president Salvador G. Tirona.

As of end-2011, Lopez Holdings held a 60.3 percent economic interest in ABS-CBN and 46.6 percent in FPHC.

Lopez Holdings, formerly Benpres Holdings Corp., serves as the Lopez family’s 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.