MANILA, Philippines – Ayala Corp. posted a 34 percent jump in its net income in the first half of the year due to record revenues from Globe Telecom and solid performances of Ayala Land and Manila Water.
Ayala Corp. said its net income in the first half of the year surged to P9.8 billion from the P7.3 billion posted in the same period last year.
Its total equity earnings in the first half of the year went up 35 percent to P12.8 billion.
Ayala Corp.'s telecommunications unit Globe Telecom reported a 385 percent growth in its net income to P6.8 billion in the first half fueled by lower depreciation charges as well as lower replacement cost.
Globe sustained its momentum as it achieved record-level revenues of P47.7 billion in the first half of the year, an increase of 7 percent from the P44.5 billion posted in the same period last year.
The higher revenues were driven by the growth of all business segments as its mobile and broadband subscriber base expanded.
The mobile subscriber base of the telecommunications firm reached 42.7 million by the end of the first half of the year, or an 18 percent growth compared to 36.1 million a year ago.
The net income of property developer Ayala Land increased by 25 percent to P7.1 billion driven by the positive momentum in the country’s real estate sector.
Ayala Land saw significant growth in its residential revenues of about 40 percent to P24.3 billion due to new bookings and completion of existing residential projects.
Manila Water, meanwhile, also reported growth in its profit on the back of a 6 percent growth in its consolidated revenues.
However, these earnings were offset by the decline in the contribution Bank of the Philippine Islands (BPI), which registered lower trading gains in the first half of this year.
BPI’s net income dropped by 33 percent at P8 billion in the first half of the year.
The decline was attributed to 32 percent drop in the bank's non-interest income as a result of the sharp contraction in trading gains during the period.
The bank's core banking business, however, remained strong as net interest income increased by 15 percent compared to the same period in 2013.
Ayala's international businesses also improved as Integrated Microelectronics Inc. (IMI) posted a five-fold improvement in net income in the first half of the year to $11.3 million.
"We are very pleased to see our core businesses continuing their strong earnings momentum. This attests to the strength of the broader business environment in the country,” said Ayala Corp. president and chief operating officer Fernando Zobel de Ayala.
He added that the firm is confident that it can sustain its momentum “given the government's ongoing reforms and the efforts to push for vital infrastructure projects that can unleash development opportunities and address critical bottlenecks.”
Ayala Corp. recently invested in the power and transport infrastructure sectors and has allotted P24 billion in capital expenditures for projects in this space this year.