MANILA, Philippines – The oldest conglomerate in the Philippines, Ayala Corporation (AC), increased its net revenue to 30.3 billion pesos by sixteen percent last year following the strong double-digit progress of the company’s power and real estate businesses.
Fernando Zobel de Ayala, Chief Operating Officer and President of Ayala, accredited the favorable outcome to the substantial contribution of equity earnings collected from the business units of the company headed by the Ayala Land and AC Energy whose earning contributions of equity increased by twenty-one percent and thirty percent, respectively.
The contributions of equity earnings hit 35.8 billion pesos, which is twelve percent higher compared to the previous year.
Zobel expressed that they are pleased to see the sustained earnings momentum over the sixth year in a row as the strategy for expansion across the businesses portfolio of the company steadily produce a good result. He said that it was since 2012 that it recorded a stable double-digit growth, which at the same time, transcribed to a combined yearly growth level of twenty-two percent. He mentioned that they keep themselves positive about the company’s course as they step closer to their goals in 2020.
Between the different segments of the business, the company group’s Ayala Land Incorporated continued its robust momentum with net income to 25.3 million pesos hitting twenty-one percent.
The company allotted 91.4 billion pesos for its last year’s capital expenditure, commencing projects 28 residential area worth 88.8 billion pesos.
Its banking sector, Bank of the Philippine Islands (BPI) penned net earnings of 22.4 billion pesos, which is 1.7 percent higher compared to the previous year.
Ruling out one-off earnings from the security sales in 2016, its net income increased thirty-one percent last year.
On the contrary, the net earnings of Globe Telecom fell to 15.1 billion pesos, five percent, because of the higher expenses of its operations and rates in depreciation which accounted to the company’s data network investments increase.
However, topline growth continues to be strong, accompanied by service revenues to 127.9 billion pesos applying six percent.
Manila Water, recorded a restrained net profit increase to 6.2 billion pesos by one percent. Higher expenses in its operations and development costs of the business strengthened topline growth.
AC Energy posted an increase of thirteen percent in its net income to 3.5 billion pesos last year, driven primarily by recent earning contribution in its equity from the company’s geothermal platform, thus, raised by strong contributions coming from assets of the company’s wind energy.
Income from services obtained from a recent power plant financial close which also contributed to the net earnings of AC Energy.
Likewise, the registered net earnings of AC Industrial is 1.2 billion pesos, four percent higher on a better production of the manufacturing of electronics and retail units of vehicles.
The Ayala group is raising its capital expenditure this 2018 to 249 billion pesos by 44 percent, mainly to aid the investment program of the parent company and the development plan of Ayala Land, Manila Water, and Globe.
Ayala has reserved 51.8 billion pesos in this year’s capital expenses, mainly to fund the company’s subscription to the stock rights issue of BPI as well as to the company’s financing to AC Energy, AC Industrial, AC Education, and AC Health.