Ayala Group nets P17.7 B in 9 months
MANILA, Philippines – Ayala Corp., the country’s oldest conglomerate, reported a 26 percent jump in its nine-month income, boosted by sustained growth of its telecommunications, real estate and banking units as well as one-time capital gains booked in the third quarter.
Net earnings reached P17.7 billion in the January to September period, just 13 percent shy of Ayala’s P20-billion income target for 2016.
In the third quarter alone, Ayala posted a net income of P7.3 billion, up 72 percent year-on-year.
Excluding the capital gains from the partial sale of AC Energy’s stake in North Luzon Renewable Energy Corp. and the divestment of Stream Global Services in the previous year, Ayala’s profit from January to September went up 23 percent.
Ayala president and COO Fernando Zobel de Ayala said the conglomerate remains optimistic about its growth given a rosy domestic economy.
“Our growth trajectory remains strong as we continue to be optimistic about the overall domestic environment,” he said.
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Property unit Ayala Land Inc. posted a net income of P12.8 billion, 19 percent higher than the previous year as revenues rose 10 percent to P70.2 billion.
Ayala Land launched various residential, office for sale and leasing projects amounting to P97.9 billion during the nine-month period.
Its banking arm, Bank of the Philippine Islands, meanwhile, reported a net income of P13.8 billion, up eight percent from the year earlier. Revenues grew nine percent to P44.1 billion, driven by net interest income and non-interest income, which expanded by P3 billion and P683 million, respectively.
Globe Telecom posted a net income of P14.1 billion, up 34 percent year-on-year with its mobile and broadband subscribers growing to P50.1 million and nearly four million, respectively.
Net earnings of Manila Water were flat at P4.6 billion. For the third quarter alone, however, the company’s profit expanded by 13 percent year-on-year to P1.6 billion on continued growth of the East Zone concession and higher contribution of its other businesses.
Manila Water continues to expand its presence outside Metro Manila, recently signing an agreement to operate the water supply system in Cu Chi District in Vietnam. It also entered into an agreement for a demonstration project to reduce non-revenue water in Bandung City, Indonesia.
Integrated Micro-Electronics Inc., on the other hand, grew its net income by five percent to $22 million on the back of operational efficiency improvements combined with the expansion of its automotive programs.
AC Energy Holdings, meanwhile, registered a net income of 1.6 billion as its power generation assets achieved more efficient operating levels and realized a gain from the partial sale of its stake in North Luzon Renewable Energy Corp., an 81-megawatt wind farm in Ilocos Norte.
In transport infrastructure, AC Infrastructure continued to move forward with its public-private partnership projects. Its automated fare collection systems project under AF Payments Inc. recently completed the roll out of its Beep cards on LRT lines 1 and 2 and MRT 3 with the take-up hitting past the one million mark.
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