Ayala Corp. posts P7.3B net in first 9 mos., up 7%

(Updated 3:10 p.m.) Ayala Corp. posted P7.3 billion in net income during the first nine months of the year, up 7 percent from a year earlier, the conglomerate said in a statement Friday. “The growth was primarily driven by its property business and the sustained momentum of its banking and telecom businesses," the company reported to the Securities and Exchange Commission. “Altogether, equity earnings from these core units increased by 9 percent," the company added. Income from sales and services totaled P69.367 billion in the nine months to September, up 16.72 percent from P59.426 billion a year earlier. “The favorable domestic economic environment and the continued robust local consumption have underpinned the growth of our core businesses," said Ayala Corp. president and COO Fernando Zobel de Ayala. Real estate unit Ayala Land experienced strong revenue growth across key business lines, such that its net income surged by 33 percent to a nine-month high of P5.2 billion. Revenues from residential property development grew by 27 percent from steady project completion and strong bookings, parent Ayala Corp. noted. Bank of the Philippine Islands posted a nine-month net of P9.6 billion, up by 6 percent year-on-year. “Total revenues were 7 percent higher than the same period last year, driven by a 9 percent increase in net interest income," according to Ayala Corp. Telco unit Globe Telecom reported a net income of close to P8 billion, up 7 percent year-on-year. “The company delivered record service revenues in the third quarter, which put nine-month consolidated service revenues at nearly P50 billion, 9 percent higher that the same period last year," Ayala Corp. said in its report. “This was driven by the continued rise in domestic voice, SMS, mobile data services and the growth in internet browsing activity," the company added. Mobile service subscribers surged by 15 percent to 29.1 million. Low equity earnings However, low equity earnings from the electronics, BPO (business process outsourcing), and auto businesses tempered Ayala Corp.’s net income during the period in review. “Ayala’s automotive dealerships were impacted by supply problems in the aftermath of the calamities in Japan last March," said the company which sells Honda and Isuzu and Honda cars. Revenues declined by 20 percent to P7.2 billion on lower vehicle sales, and net income slowed by 69 percent to P76 million in the nine-month comparable period. “Recent flooding in Thailand where Honda units are assembled will create supply disruptions in many Asian countries," said Ayala Corp. However, its Honda and Isuzu networks still have a 47 percent and 32 percent market share, respectively. BPO unit LiveIt reported a net loss of $19 million after taking into account financing and non-operating expenses. Integrated Microelectronics Inc. generated year-to-date sales of $420 million, up 43 percent. Its year-to-date net income was $1.6 million, down 67 percent on higher labor and materials costs. — VS/TJD, GMA News