Tuesday, May 13, 2014

Ayala posts strong Q1 growth


Globe Telecom saw fourfold rise in net income to P2.9B


By






MANILA, Philippines—Conglomerate Ayala Corp. boosted its first-quarter net profit by 22 percent year on year to P5.5 billion as it generated more earnings from core real estate, telecommunications, water and international businesses alongside a one-time gain from the sale of its interest in a call center unit.


Excluding extraordinary items, Ayala’s net income would have risen by 24 percent year on year, the group reported Tuesday. Most of its core businesses reported double-digit growth in year-on-year earnings in the first three months.


Adding to the group’s earnings in the first three months was the P1.8-billion capital gain from the sale of Stream Global Services Inc., one of Ayala’s investee companies under its business process outsourcing unit.


Other extraordinary items include the impact of unit Bank of the Philippine Islands’ unusually high trading gains of P5.7 billion in 2013.


That same quarter, BPI’s net earnings declined by 57 percent to P3.6 billion.


“We are glad to see the strong momentum continue across our core businesses, as well as the improving profitability of our international businesses,” said Fernando Zobel de Ayala, president and chief operating officer of Ayala. “We are confident this momentum will continue for the rest of the year as the fundamental drivers of domestic economy remain firmly in place.”


Ayala’s BPO unit LiveIt reported significant earnings improvement boosted by the sale of Stream Global Services Inc. and the improved performance of its investee companies. Share of revenues excluding Stream reached $24.5 million—up by 6 percent year-on-year.


Real estate unit Ayala Land reported a 25-percent growth in net income to P3.5 billion on higher revenues across its residential, commercial leasing, and property services, combined with stable margins.


Globe Telecom reported a four-fold increase in net income to P2.9 billion from only P686 million in the same period last year largely due to healthy top line growth and the tapering of accelerated depreciation charges following its network modernization program.


Net income of Manila Water Co. Inc. rose by 9 percent to P1.4 billion on higher billed volume, mainly from new business areas in Laguna, Boracay, and Clark, as well as in Vietnam.


Integrated Microelectronics Inc.’s net income reached P226 million—20 times higher than that of the first quarter last year due to higher sales volumes, better cost savings and improved margins.


The contributions of all its business units totaled P6.9 billion in equity earnings—20 percent higher than that of the same period last year.


At the end of March 2014, the parent company had a cash position of nearly P30 billion.



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Tags: ayala corp. , Business , Earnings , Globe telecom , net income , Philippines



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