Ayala profit surges 35%

MANILA, Philippines - Ayala Corp., the country’s oldest conglomerate, increased its earnings by a third in the first nine months, buoyed by robust results from core businesses of real estate, telecommunications and water.

AC’s net income soared 35 percent year-on-year to P14.1 billion as Ayala Land, Inc., Globe Telecom and Manila Water Co., turned in solid results.

AC said healthy performance by these core businesses helped compensate lower earnings from the Bank of the Philippine Islands (BPI), which had generated substantial gains from securities trading during the prior year.

Without the effect of accelerated depreciation from Globe Telecom’s network transformation initiative during the previous year, AC said its core net income grew 15 percent year-on-year.

The conglomerate’s consolidated revenues likewise increased 17 percent to P134.5 billion.

Sale of goods and rendering of services comprised 85 percent of the firm’s consolidated revenues, totaling P114.5 billion and expanding 15 percent year-on-year.

“Robust performance across all business segments by AC, continued improvement in revenues from Manila Water due to higher billed volume, rising revenues from Integrated Microelectronics Inc. (IMI), and the P1.8 billion net divestment gain from Stream Global Services Inc. were all significant contributors to the expansion in consolidated revenues,” AC said.