Ayala Corp. H1 net income rise 6% to P10.4B
by James Loyola
August 13, 2015 (updated)

SOURCE: http://www.mb.com.ph/ayala-corp-h1-net-income-rise-6-to-p10-4b/#xfs3oIAFL5DZE6lL.99

Ayala Corporation reported that its net income rose 6 percent to P10.4 billion in the first half of the year driven by the double- digit growth in its telecom, real estate, banking, and electronics businesses, and boosted by the positive performance of its power generation unit.

Excluding the previous year’s divestment gains from the sale of Stream Global Services, Ayala’s business process outsourcing unit, Ayala’s net income in the first semester grew 31 percent.

In a disclosure to the Philippine Stock Exchange, Ayala said its solid performance in the first half of the year was a result of strong equity earnings contribution from its business units, which reached P13.2 billion, up 2 percent from a year ago.

Without the divestment gains, equity earnings expanded 20 percent in the first half of the year.

The strong double-digit growth in the equity earnings of Globe Telecom, Ayala Land, Bank of the Philippine Islands, and Integrated Microelectronics combined with the positive contribution from AC Energy Holdings drove Ayala’s equity earnings during the period.

“Our earnings continue to grow at a strong pace in step with the overall performance of our business units. As demand drivers remain upbeat, and as our investments in power come onstream, we believe this strong growth will continue throughout the year,” Ayala president Fernando Zobel de Ayala said.

He added that, “as our core businesses grow, we continue to seek new areas to invest in. We are developing new platforms in the healthcare and education spaces. We believe these two sectors present excellent opportunities for growth and scale.”

Ayala Land’s net income expanded 19 percent to P8.4 billion, lifted by the upbeat performance of its property development and commercial leasing operations.

Net earnings of the Bank of the Philippine Islands expanded 16 percent to P9.3 billion As its core banking business continued to drive growth.

Manila Water’s net income dipped 4 percent from a year ago to P3 billion owing to higher operating expenses primarily from catch-up rental costs incurred by the East Zone concession during the period.

Integrated Micro-Electronics Inc. recorded a net income of $15.2 million, 35 percent higher from the previous year as operational improvements, continued focus on higher-margin products, and cost saving measures increased profitability.

As its power generating assets come online, AC Energy Holdings Inc. registered a net income in the first half of the year of P198 million. In transport infrastructure, Ayala formally opened the Muntinlupa-Cavite Expressway (MCX) on July 24, 2015.