MANILA, Philippines - Ayala Corp. saw its profits rise 19% to P8.7 billion in the 9-month period, as the strong performance of its property, water and banking businesses offset the decline in equity earnings from its telecoms business.
Core net income, which does not include the impact of accelerated depreciation from Globe Telecom, went up 31% to P9.3 billion in the January to September period.
"We are pleased with the earnings performance of each of our core businesses and the continued improvement in profitability of our international units. Their combined performance to-date keeps us on track with our year-end targets," Ayala Corp. chairman and CEO Jaime Augusto Zobel de Ayala said in a statement.
"The positive momentum in the domestic economy continues to present opportunities for us to build on the trajectory of our core businesses and aggressively expand in these sectors. As our core businesses remain a steady source of earnings and cash flow, we also continue to optimize our portfolio to maximize value and actively invest in new sectors such as power and transport infrastructure to build a platform for long-term growth."
Improvements in the equity earnings of Ayala's international units helped boost the conglomerate's earnings.
Ayala Land posted a 27% increase in 9-month net income to P6.6 billion. Total revenues jumped by 20% to P39 billion with its property development business up 27% year-on-year on higher bookings and continued completion of projects.
Meanwhile, the Bank of the Philippine Island reported its 9-month net income rose by 37% to P13.2 billion, driven by an 18% growth in revenues.
On the other hand, Globe Telecom saw its profit decline by 15% to P6.8 billion, with the increase in operating expenses, subsidy and the impact of the accelerated depreciation from its network modernization program. Core net income went up 7% to P8.8 billion.
However, Globe's top-line growth remained strong, as service revenues reached an all-time high of P61.3 billion on strong mobile, fixed line data and broadband growth which offset the decline in fixed line voice revenues.
Manila Water Co., Inc., water concessionaire for the East Zone, reported 26% rise in net income toP3.9 billion in the first 9 months of the year. Growth in income was attributed to steady rise in billed volume plus the timely implementation of the tariff adjustment and the contribution of new businesses.
Ayala's electronics business, Integrated Microelectronics, Inc. reported a three-fold improvement in earnings in the January to September period $5 million.
BPO unit LiveIt's share of revenues reached $251 million, up 8% year-on-year, which allowed it to reduce its net loss.