MANILA, Philippines - Lopez Holdings Corp., formerly Benpres Holdings Corp., reported P3.955 billion in net income in 2011.
The 2011 net income attributable to equity holders of the parent represents a 70% drop from the P13.175 billion net income in 2010, which included the company's share in the gains of the sale of Meralco by First Philippine Holdings Corporation (FPH).
Lopez Holdings showed gains from a successful tender offer for unrestructured debt conducted in 2011, cushioning the effects of a challenging year for its investees. The total debt bought back resulted in a P2.119 billion gain for 2011.
Lopez Holdings also reported net revenues of P25.047 billion in 2011, which were 10% lower than the previous year's P27.860 billion. ABS-CBN Corp. saw 12% decline in revenues, due to the lack of election-related advertising that boosted 2010 revenues to record levels.
Equity in net earnings also dropped by 93% to P732 million from P11.118 billion. Associate FPH reported a P2.117 billion net income attributable to equity holders of the parent compared to 2010's P24.850 billion, which included proceeds from the sale of its 6.6% stake in Meralco.
"ABS-CBN operates in a fiercely competitive market, but continues to make significant investments toward future growth. At the same time, FPH is expanding its renewable energy portfolio through First Gen. We believe their clear strategic directions will allow Lopez Holdings to provide sustainable returns to shareholders over the long term," said Lopez Holdings president Salvador G. Tirona, in a statement.
As of end December 2011, Lopez Holdings held a 60.3% economic interest in ABS-CBN and 46.6% in FPH.
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