Ayala Q1 profit dips on lower telco, energy earnings

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, saw a slight dip in its profit in the first quarter due to lower earnings from its telecommunications and energy businesses.

Ayala’s core net income, which excludes one-off items, slipped by four percent year-on-year to P11.3 billion as healthy contributions from Bank of the Philippine Islands (BPI) and Ayala Land failed to offset lower earnings from Globe and AC Energy & Infrastructure Corp., the parent company of ACEN.

Including one-off items, Ayala’s net income, likewise, declined by four percent to P12.6 billion.

Ayala president and CEO Cezar Consing said the group is seeing strong starts from its banking, real estate and fintech businesses, while its telco and energy businesses have some catching up to do.

“Our smaller, newer companies are turning the corner. We are constructive on the year,” Consing said.

BPI reported a net income of P16.6 billion during the first quarter, up by nine percent year-on-year as a result of strong revenue growth which offset higher operating expenses and provisions.

Ayala Land’s net income jumped by 10 percent to P6.9 billion as resilient property development bookings and healthy leasing and hospitality operations boosted revenues by six percent to P43.6 billion.

ACEN’s net income, meanwhile, fell by 28 percent to P2 billion due to lower generation, softer local electricity spot market prices and depreciation expenses from newly operationalized plants.

Lower gross service revenues, higher financing costs and higher depreciation expenses pulled down Globe’s core net income by 22 percent to P4.5 billion.

Its net income, however, improved by three percent to P7 billion as a result of higher equity earnings from affiliates and a P2.2 billion dilution gain in Mynt.

AC Health narrowed net losses to P59 million during the quarter from last year’s P191 million following better utilization of facilities and improved margins through prudent cost management, supported by the absence of KMD losses.

AC Logistics also trimmed its core net loss during the period to P303 million from P400 million on the back of cost savings and margin uplift from the closures of Entrego and the last mile arm of AIR21.

Core net loss of AC Industrials likewise slashed to P115 million from P331 million, with IMI’s net income of $3.3 million offsetting wider losses in ACMobility at P168 million.