Ayala 9-mth profit surges 35% to P14.1B

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Blue-chip conglomerate Ayala Corp reported on Thursday a 35-percent year-on-year increase in consolidated net income for the nine months to September.

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Ayala said its net income for the nine-month period reached P14.1 billion on high yields in property unit Ayala Land Inc. (ALI), its telco subsidiary Globe Telecom Inc. and utilities unit Manila Water Company Inc.

The “healthy performance by these core businesses helped compensate for the lower earnings from the Bank of the Philippine Islands (BPI),” which had lackluster trading gains in the first nine months against last year, it said.

“Without the effect of accelerated depreciation from Globe Telecom’s network transformation initiative last year, Ayala’s core net income grew 15 percent,” it added.

Nine-month revenues rose 17 percent to P134.5 billion from a year earlier on strong results from ALI, Manila Water, and Stream Global Services Inc.

Property unit ALI expanded its nine-month net income by 25 percent to P10.8 billion from P8.6 billion last year, while Manila Water’s net profit grew 6 percent to P4.5 billion.

As of end-September, Ayala’s electronics and semiconductor arm Integrated Micro-electronics Inc. (IMI) saw a four-fold net income surge to $21 million from $5.3 million last year, while telecommunications unit Globe saw its net income grow 198 percent to P10.53 billion.

Ayala’s banking arm BPI is the sole loser with a 19 percent decline in nine-month net income to P12.8 billion from P15.8 billion a year ago, when it registered a one-time industry-wide trading gain.

Across its business segments, ALI has spent P58.98 billion of its P70 billion capital expenditure (capex) this year on project completions (65 percent) and land acquisitions (35 percent).

Manila Water, on the other hand, has a P5 billion capex this year, of which less than 10 percent has been used for wastewater expansion and network reliability projects.

IMI has used $17.7 million of its $22 million capex for this year on warehouse, facilities improvement, and additional equipment for plant expansion.

Founded in 1834 and incorporated in 1968, Ayala Corp. is the holding company of the Ayala family’s businesses, which include water (Manila Water Company Inc.), telecom (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductor (Integrated Micro-Electronics Inc.), banking (Bank of the Philippine Islands), and education (LiveIt Investments), among others. It is 50.56-percent owned by Mermac Inc., 10.52-percent by Mitsubishi Corporation and 38.92-percent by the investing public.

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