Ayala Corp. Q1 net income leap 23%

Publicly listed Ayala Corp. said Friday that strong earnings of its subsidiaries and affiliates pushed up net income for the first quarter of 2006 by 23%. In a disclosure to the Philippine Stock Exchange, the firm said that it recorded a net income of P3.1 billion in the first quarter, from P2.5 billion in the same period last year. "We are pleased to see the continued growth of our subsidiaries and affiliates. We believe this momentum can be sustained throughout the year supported by the positive trends in the broader macro-economic environment. The recent resurgence in investor confidence in the market is indicative of the optimism that these developments will eventually benefit key sectors of the economy," Ayala Chairman and CEO Mr. Jaime Augusto Zobel de Ayala II said in a statement. Revenues for the period went down 21% to P5.5 billion from P6.9 billion, due to the company’s sale of its preferred shares in Astoria Investment Ventures Inc. last year, the firm said. "However, revenues from its core and support businesses grew by 15% to P4.7 billion given the improved performance across most of its business lines," it added. It said revenues from residential development rose 28% due to higher construction accomplishment and increased unit sales bookings while revenues from shopping centers grew 13% as a result of higher occupancy rates and gross leasable space with the opening of Phase 1B of Market!Market! "The corporate business segment also posted strong growth with revenues up 75% mainly with higher occupancy rates and boosted by office space sales and BPO building rentals," Ayala said. The company said real estate arm Ayala Land Inc. posted a consolidated net income for the first quarter of P1.18 billion, up slightly from last year’s 1.16 billion. The company’s net income for the same quarter last year factored in one time gains from the sale of the AIVI shares. "Factoring out one-time gains from non-core asset sales as well as the provisions made in 2005, net income would be up by 112% year-on-year, the firm said. It also said that the Bank of the Philippine Islands posted a net income of P2.5 billion, 27% higher than the P2 billion in the same period last year. Telecommunications arm Globe Telecom, meanwhile, continued to grow in the first quarter, posting a 19% increase in net income to P3.5 billion from P2.9 billion on the back of higher revenues from its voice and data segments. "AC Capital’s earnings contribution during the quarter reached P720 million 39% lower than same period last year. Excluding last year’s dilution gains from Manila Water’s IPO, however, its earnings contribution would be 79% higher year-on-year. Integrated Microelectronics and Manila Water were the main drivers," it added. Manila Water posted a net income of P600 million, 24% higher than the P484 million recorded for the same period last year. Consolidated net income of IMI, meanwhile, reached P471 million, up 50% from P313 million. "Ayala’s financial position continues to strengthen with debt at the parent level down to P40 billion from P45 billion at the end of last year. Parent net debt to equity ratio further improved to 0.43 to 1 by the end of the quarter from 0.49 to 1 at the end of 2005," the firm added. At the bourse, the company’s shares yesterday ended lower, at P447.50 per share from the previous day’s P457.50. Ayala is the oldest investment house in the Philippines founded and the country’s largest and most widely diversified conglomerate. The Company is the holding firm of the Ayala Group of Companies and derives its income principally from its various stock investments. It maintains leadership in real estate and hotels, financial services and bankassurance, telecommunications, electronics and information technology, water utilities, automotive, international property investments, air-charter services, food and agri-business and other related services. -Business World