Ayala Land downplays POGO ban impact; profits up 15% in H1

Property giant Ayala Land Inc. said Wednesday it would hardly be affected by the government's decision to ban Philippine Offshore Gaming Operators (POGO).

At a press briefing in Makati City on Wednesday, Ayala Land president and CEO Anna Ma. Margarita Bautista-Dy said that the real estate developer’s exposure to POGO is ''very small.''

“We really have very [few] sales to Chinese buyers in general, so POGO,” Dy said.

The Ayala Land chief said less than 5% of the company’s units are occupied by POGO.

"Relatively, our exposure really is very small,” she said.

In his third State of the Nation Address (SONA), President Ferdinand Marcos Jr. ordered the Philippine Amusement and Gaming Corp. to cease the operations of all POGO companies by the end of the year. 

Economic managers also downplayed the economic losses that would result from the total ban on POGO in the country, pointing out that the industry contributed less than 0.5% of the gross domestic product (GDP).

In the first half of 2024, Ayala Land reported a net income of P13.1 billion, up 15% year-on-year, as revenues reached P84.3 billion, growing 28% from a year earlier.

The company’s capital expenditures during the period reached P36.5 billion, of which 51% were spent on residential projects, 27% on estate development, 11% on commercial leasing assets, and 11% on land acquisition commitments.

Ayala Land’s property development revenues rose 34% to P51.9 billion, driven by higher residential and commercial lot bookings.

Residential revenues, meanwhile, surged 40% to P43.7 billion, and revenues from commercial and industrial lots grew 19% to P6.3 billion.

Office-for-sale revenues registered a 15% decline to P1.8 billion as a lower incremental percentage of project completion offset new bookings.

Residential reservation sales in the first half also increased by 17% year-on-year to P68.4 billion, as second-quarter sales grew 15% year-on-year to P35 billion, led by the premium and vertical segments.

“Ayala Land is hitting its growth targets across all business lines and market segments. Residential sales outperformed expectations. We will continue to pursue our growth trajectory with a keen eye on capital efficiency,” said Dy. — VBL, GMA Integrated News