Conglomerate Ayala Corp. boosted its
first-quarter net profit by 22 percent year on year to P5.5 billion as it
generated more earnings from core real estate, telecommunications, water and international
businesses alongside a one-time gain from the sale of its interest in a call
center unit. Most of its core businesses reported
double-digit growth in year-on-year earnings in the first three months.
Adding to
the group’s earnings in the first three months was the P1.8-billion capital
gain from the sale of Stream Global Services Inc., one of Ayala’s investee
companies under its business process outsourcing unit. Other extraordinary
items include the impact of unit Bank of the Philippine Islands’ unusually high
trading gains of P5.7 billion in 2013. That same quarter, BPI’s net earnings
declined by 57 percent to P3.6 billion.
“We are glad
to see the strong momentum continue across our core businesses, as well as the
improving profitability of our international businesses,” said Fernando Zobel
de Ayala, president and chief operating officer of Ayala. “We are confident
this momentum will continue for the rest of the year as the fundamental drivers
of domestic economy remain firmly in place.” Ayala’s BPO unit LiveIt reported
significant earnings improvement boosted by the sale of Stream Global Services
Inc. and the improved performance of its investee companies. Share of revenues
excluding Stream reached $24.5 million—up by 6 percent year-on-year.
Real estate
unit Ayala Land reported a 25-percent growth in net income to P3.5 billion on
higher revenues across its residential, commercial leasing, and property
services, combined with stable margins. Globe Telecom reported a four-fold
increase in net income to P2.9 billion from only P686 million in the same
period last year largely due to healthy top line growth and the tapering of
accelerated depreciation charges following its network modernization program. Net
income of Manila Water Co. Inc. rose by 9 percent to P1.4 billion on higher
billed volume, mainly from new business areas in Laguna, Boracay, and Clark, as
well as in Vietnam. Integrated Microelectronics Inc.’s net income reached P226
million—20 times higher than that of the first quarter last year due to higher
sales volumes, better cost savings and improved margins.
The
contributions of all its business units totaled P6.9 billion in equity
earnings—20 percent higher than that of the same period last year. At the end
of March 2014, the parent company had a cash position of nearly P30 billion.
Source: Phil. Daily Inquirer
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