Ayala Corporation raises net income to 35% for Jan-Sept

MANILA, Philippines – Ayala Corporation posted an increase of 35% or P14.1 billion ($314.21 million)* in net income for the first 9 months of 2014, attributed to the strong showing of its core business units.

Based on the financial statement filed with the Philippine Stock Exchange, Ayala’s consolidated revenues increased by 17% to P134.5 billion ($3 billion).

Of the consolidated revenues, 85% comprised of sale of foods and rendering of services, amounting to P114.5 billion ($2.55 billion), and expanding by 15% year-on- year.

Ayala, through its subsidiaries, has interests in banking, real estate, telecommunications, and water utility.

Ayala’s core net income grew 15%, excluding the impact of accelerated depreciation from Globe Telecom’s network transformation initiative in 2013.

Globe Telecom grew across all key services for the first 9 months of 2014, generating increased gross service revenues of P72.7 billion ($1.62 billion), representing a rise of 8% from 2013.

In a disclosure, Ayala said healthy performance by its core businesses helped compensate lower earnings from the Bank of the Philippine Islands (BPI), which generated substantial gains from securities trading the year before.

BPI reported net income of P12.8 billion ($285.37 million), a decline of 19% from the same period in 2013.

Ayala Land Incorporated, meanwhile, continued to expand, with net income increasing by 25% or P10.8 billion ($240.71 million).

Ayala’s water utility firm, Manila Water, also continued to perform well, with consolidated revenues increasing by 6% to P12.2 billion ($271.90 million) due to its steady expansion in the East Zone and rising contribution from subsidiaries. Net income of Manila Water also grew 6% to P4.5 billion ($100.29 million).

The conglomerate’s electronics manufacturing firm, Integrated Microelectronics Incorporated, maintained its positive trajectory with revenues rising 19% to P28.8 billion ($641.86 million). Its net income surged fourfold to P930 million ($20.73 million).

The Ayala group also made significant investments in power and transport infrastructure, allotting P24 billion ($535.11 million) in capital expenditures for projects in these areas.

Ayala and Metro Pacific Investments Corporation won the concession agreement for the P65-billion ($1.45-billion) Light Rail Transit 1 (LRT1) Cavite extension project. – Rappler.com

*US$1 = P44.84