Ayala doubles earnings to P37.8 B in 6 months

MANILA, Philippines — Earnings of Ayala Corp. doubled year-on-year in the first half to P37.8 billion on the back of robust growth of its banking, telecommunications and real estate units, combined with gains from value realization exercises in its emerging businesses.

“Our first-half results reflect the strength of our core holdings in real estate, banking and telecommunications. This was complemented by the value realization initiatives in our energy business,” Ayala president and chief operating officer Fernando Zobel de Ayala said.

Ayala said equity earnings from its business units, which include divestment gains from the merger of AC Education with iPeople and partial divestment of AC Energy’s thermal assets, doubled to P41.7 billion in the first semester.

“We are pleased with the rapid growth of AC Energy, its growing contribution to our overall profitability, and the regular value realization exercises to deliver investment returns to Ayala,” Zobel said.

Real estate unit Ayala Land Inc. recorded a net income of P15.2 billion, a 12 percent jump year-on-year, on strong performance of its commercial leasing as well as the sale of offices and commercial and industrial lots.

Sustained margin expansion supported by a growing fee-income business and moderated operating expenses lifted Bank of the Philippine Islands’ net income in the first half of the year, growing 25 percent to P13.7 billion year-on-year.

Globe was also able to sustain its robust showing, with net income rising 21 percent to P12 billion as continued strong demand for data-related services across its product segments boosted topline growth.

AC Energy’s net profit reached P23.2 billion in the first semester, lifted by the recovery of costs incurred from adjustments in the construction and operations of its power plants as well as gains from the partial divestment of its thermal assets.

Meanwhile, higher operating expenses and lower billed volume resulting from the water shortage dragged Manila Water’s net profits, finishing 18 percent lower year-on-year to P2.9 billion in the first half.

AC Industrials recorded a net loss of P510 million as macropolitical risks, sectoral headwinds, and component supply tightness impacted its first semester numbers.