Lopez Holdings H1 profit drops 75% to P1.4-B

Rappler.com
Lower electricity revenues and the absence of one-time gains pull down Lopez Holdings' earnings in the first half of 2013

MANILA, Philippines — Lower electricity revenues and the absence of one-time gains pulled down Lopez Holdings Corp.’s earnings in the first half of 2013.

In a statement Thursday, August 15, Lopez Holdings, the media and power holding firm of the Lopez family, said its net income attributable to equity holders of parent fell 74% to P1.424 billion in January-June from P5.451 billion in the same period of 2012.

The firm said that unlike last year, this year’s financial results lacked one-time gains. Subsidiary First Philippine Holdings Corp. (FPHC) last year earned over P3 billion from the sale of 30 million shares in power distributor Manila Electric Co. (Meralco) to the group of Manuel V. Pangilinan. 

Lopez Holdings’ unaudited consolidated revenues in the first 6 months of 2013 dropped 10% year-on-year to P45.281 billion from P50.450 billion due to lower electricity and merchandise sales by FPHC.

Lopez Holdings owns 46.2% economic interest in FPHC. It also owns 56.6% economic interest in media conglomerate ABS-CBN Corp.

“FPHC continues to pursue its growth agenda in renewable energy, anchored on stable cash flows from its portfolio of gas and geothermal plants. ABS-CBN is set to build a first-of-its kind kiddie theme park in the country, while ABS-CBN Convergence will be the newest mobile phone provider in the country by the end of the year. We fully support these new investments which will lead to superior valuations in the long term,” said Salvador Tirona, Lopez Holdings COO and CFO.

ABS-CBN earnings

The country’s largest media group recorded to P1.338 billion net income attributable to equity holders of parent, a 44% improvement from P927 million in 2012. Consolidated revenues stood at P17.061 billion, up 23% from P13.838 billion. Political ad revenues boosted the company’s top line during the period.

High ratings and overall increase in advertising budget of corporates helped ABS-CBN’s recurring advertising revenues soar 17%. Consumer sales in the first 6 months also rose 16%, thanks to Sky Cable revenues posting 30% growth.

FPHC earnings

The power firm’s net income attributable to equity holders of parent plunged 82% to P1.9 billion.

Total revenues stood at P45.3 billion, a 10% decrease year-on-year. – Rappler.com