AYALA Corp. (AC), the oldest conglomerate in the Philippines, recorded a 26 percent increase in net income in the nine months to September on strong earnings across its business segments, further boosted by one-off gains from asset sales.
The company said net income grew to P17.7 billion in the first nine months on solid earnings from its real estate, banking, and telecommunications businesses.
Excluding the one-time gain from the partial sale of AC Energy Holdings Inc.’s stake in North Luzon Renewable Energy Corp. (NLREC) and the divestment of Stream Global Services last year, AC’s nine-month net income was up 23 percent from a year ago.
For the third quarter alone, its net income reached P7.3 billion, up 72 percent from last year.
Equity earnings contribution from its subsidiaries in the first nine months rose 4 percent to P21.4 billion.
“Our growth trajectory remains strong as we continue to be optimistic about the overall domestic environment,” AC president and chief operating officer Fernando Zobel de Ayala said.
For its subsidiaries’ performance during the nine month period, property arm Ayala Land Inc. boosted its net income by 19 percent to P12.8 billion on sustained sales in residential, offices, malls and other commercial developments.
Its banking subsidiary Bank of the Philippine Islands also posted 8 percent growth in net income to P13.84 billion. The bank’s total revenues increased by 9.1 percent to P44.1 billion on the back of double-digit growth in loans and deposits, and improved trading gains.
Telecom unit Globe Telecom Inc. booked P14.1 billion net income in the nine months to September, 34 percent higher than a year ago, driven by strong service revenues on robust demand for mobile data services.
Its water utilities and electronics manufacturing units—Manila Water Co. Inc. and Integrated Micro-Electronics Inc. (IMI)—both recorded flat profits in the nine months. Manila Water’s profit inched up 1 percent to P4.6 billion from last year, while IMI saw a 5 percent increase in net income to $22 million from $21 million.
For its power segment, AC Energy realized a P1.6 billion net income in the first nine months as power generating assets leveraged on more efficiencies. Earnings were also boosted by a one-off gain from the sale of Luzon Wind Energy Holdings BV to the Mitsubishi Group.
Despite not disclosing figures, AC Infrastructure Holdings Corp. said it is continuing with its thrust in public-private partnership projects such as the Light Rail Transit Line 1 and the Muntinlupa-Cavite Expressway.