Ayala 9-mo net income up 36%

Ayala Corp.’s net income for the nine months ending in September, which includes one-off items from the revaluation of AC Ventures, jumped by 36 percent to P46.3 billion.

In a disclosure on Thursday, the country’s oldest conglomerate said this was mainly due to net one-off gains from the revaluation of AC Ventures, which holds Ayala’s direct stake in Mynt.

In particular, a remeasurement gain was booked because of the Mitsubishi group’s subscription to a 50-percent stake in AC Ventures. The Japanese firm effectively acquired an indirect ownership in Mynt.

Also, Ayala said its core net income in the first three quarters was almost unchanged at P36.6 billion, as weighed down by the sluggish performances of its power and telecommunications units.

“While GDP (gross domestic product) growth has slowed somewhat, our core businesses remain steady and our portfolio businesses continue to improve,” Ayala CEO Cezar Consing said.

“Our recently announced initiatives in retail, Makro and Spinneys, signify continued confidence in the long-term growth trend of the Philippine economy,” Consing said.

Bank of the Philippine Islands remained the group’s top growth engine. Its profit edged up by 5 percent to P50.5 billion on the expansion of its loan portfolio.

The bank’s revenues also jumped by 13.2 percent to P142.3 billion on higher net interest income.

The real estate business under Ayala Land saw earnings rise one percent to P21.4 billion. This was thanks to steady property development revenues, coupled with improvements in its leasing and hospitality business.

During those nine months, the property unit spent about P65.5 billion. Of this, 40 percent invested in residential projects.

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Telco giant Globe Telecom, meanwhile, saw a 12-percent drop in its core net income. This settled at P15.5 billion due to weaker gross service revenues and higher depreciation and interest expenses.

ACEN, its listed energy arm, likewise recorded a decline in core profit, hitting P4.3 billion, down 18 percent from a year ago. This, to the firm taking a hit from cheaper spot market prices and the temporary shutdown of its wind facilities in Ilocos Norte.

Considering a one-off loss linked to its wind farms in Vietnam, ACEN’s earnings plunged 78 percent to P1.8 billion.

Meanwhile, AC Health cut its losses from P417 million to just P9 million. This followed a better result from its provider business, as well as gains from the sale of KMD shares.