MANILA, Philippines - Lopez Holdings Corp. posted a net income of P5.451 billion in the first half of the year, 569% up from P815 million during the same period last year.
The company attributed the higher profit to the 39x year-on-year increase in equity in net earnings of associates to P4.914 billion, a turnaround from an equity in net loss of associates of P127 million. This after First Philippine Holdings Corporation (FPH) sold a 2.66% stake in Manila Electric Co. (Meralco) in January.
FPH also booked additional gains related to its previous sale of Meralco shares, with the assignment to the FPH group of Rockwell Land shares received as property dividends by buyer Beacon Electric.
Consolidated revenues jumped 9% year-on-year to P15.252 billion from P13.955 billion, as associate ABS-CBN Corporation (ABS-CBN) continued to dominate TV ratings and implemented higher advertising rates in February.
"ABS-CBN consumer sales showed strength, growing 17% compared to 5% for advertising revenues. Its associate, SkyCable, demonstrated operational strength in absorbing Destiny Cable. FPH, in addition to a number of extraordinary gains during the period, continued to harness consistently stable performance from its generation assets. We are optimistic this trend can be sustained for the rest of the year," said Lopez Holdings president, chief operating officer and chief finance officer Salvador G. Tirona, in a statement.
ABS-CBN on Monday said it may exceed its full-year profit target of P1.3 billion, as advertising revenues show signs of strengthening in the second half.
As of December 31, 2011, Lopez Holdings held a 60.3% economic interest in ABS-CBN and 46.6% in FPH.
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