Ayala Corp. earns P23.9 B in 9 months
Published Nov 14, 2018 12:00 am
By James A. Loyola
Ayala Corporation, the country’s oldest conglomerate, reported that its net income inched up 3 percent in the first nine months of 2018 to P23.9 billion due to the strong earnings growth of its real estate, telecommunications and power businesses.
Ayala President Fernando Zobel de Ayala
In a disclosure to the Philippine Stock Exchange, the firm said that growth was tempered by higher parent company interest expense resulting from increased borrowings to support Ayala’s capital expenditures and investments.
Equity earnings reached P29.3 billion, nine percent higher than a year ago. This was underpinned by robust contributions from Ayala Land and Globe, which expanded 17 percent and 16 percent, respectively.
This was further boosted by AC Energy, whose equity earnings contribution surged 40 percent in the first nine months of the year.
“These results reflect the value of having a well-diversified portfolio. While some businesses have more exposure to the impact of certain local and global macroeconomic and industry challenges, other businesses have been fairly insulated and are providing a positive balance to our portfolio,” said Ayala President Fernando Zobel de Ayala..
Ayala Land sustained its earnings momentum, with net income growing 17 percent year-on-year to P20.8 billion primarily driven by its residential segment, supported by the commercial leasing business.
Bank of the Philippine Islands reported a net income of P17.0 billion, flat versus the previous year while Globe Telecom posted a net income of P15.2 billion in the first nine months of the year.
Manila Water recorded net income of P4.9 billion, one percent higher from the previous year, led by the Manila Concession and Manila Water Asia Pacific.
AC Energy’s net earnings expanded 39 percent to P2.8 billion in the first nine months of the year owing largely to higher equity in net earnings across both its thermal and renewable platforms.
However, AC Industrials’ net income ended 27 percent lower year-on-year to P758 million, largely due to the weaker performance of its automotive businesses and the startup losses from new businesses, which are still ramping up.
Ayala President Fernando Zobel de Ayala
In a disclosure to the Philippine Stock Exchange, the firm said that growth was tempered by higher parent company interest expense resulting from increased borrowings to support Ayala’s capital expenditures and investments.
Equity earnings reached P29.3 billion, nine percent higher than a year ago. This was underpinned by robust contributions from Ayala Land and Globe, which expanded 17 percent and 16 percent, respectively.
This was further boosted by AC Energy, whose equity earnings contribution surged 40 percent in the first nine months of the year.
“These results reflect the value of having a well-diversified portfolio. While some businesses have more exposure to the impact of certain local and global macroeconomic and industry challenges, other businesses have been fairly insulated and are providing a positive balance to our portfolio,” said Ayala President Fernando Zobel de Ayala..
Ayala Land sustained its earnings momentum, with net income growing 17 percent year-on-year to P20.8 billion primarily driven by its residential segment, supported by the commercial leasing business.
Bank of the Philippine Islands reported a net income of P17.0 billion, flat versus the previous year while Globe Telecom posted a net income of P15.2 billion in the first nine months of the year.
Manila Water recorded net income of P4.9 billion, one percent higher from the previous year, led by the Manila Concession and Manila Water Asia Pacific.
AC Energy’s net earnings expanded 39 percent to P2.8 billion in the first nine months of the year owing largely to higher equity in net earnings across both its thermal and renewable platforms.
However, AC Industrials’ net income ended 27 percent lower year-on-year to P758 million, largely due to the weaker performance of its automotive businesses and the startup losses from new businesses, which are still ramping up.