Lopez Holdings Q2 profit plunges
LOPEZ HOLDINGS Corp. reported a 48% decline in its attributable profit in the second quarter, due to “one-off losses and the absence of one-off gains at its associate” First Philippine Holdings Corp. (FPH).
A regulatory filing showed the holding company of the Lopez family posted a net income attributable to equity holders of the parent of P721 million in the April to June period, significantly lower than the P1.37 billion during the same period a year ago.
For the first six months of 2017, Lopez Holdings saw a 34% drop in attributable net income to P1.76 billion, from P2.668 billion reported in the same period in 2016.
“One-off losses and the absence of one-off gains at its associate, as well as higher consolidated finance costs and foreign exchange losses accounted for the lower income,” the listed company said in the quarterly report.
Consolidated revenues rose 22% to P26 billion during the second quarter, bringing the first half figure to P51.48 billion, up 17% year on year.
FPH, which is 46% owned by Lopez Holdings, saw its attributable net income decline by 59% to P607 million in the April to June period. For the first half, FPH’s attributable profit fell 28% to P2.51 billion.
“FPH booked one-off losses totaling P1 billion related to the debt extinguishment of operating units in 1H2017, while it booked P1.3-billion liquidated damages from a contractor in 1H2016. The absence of such one-off gain, higher finance costs and unfavorable forex movement led to the lower income,” Lopez Holdings said.
Excluding forex and other nonrecurring items, Lopez Holdings said FPH’s consolidated recurring net income would have gone up 14% on higher profits from energy, real estate and manufacturing units.
On the other hand, ABS-CBN Corp.’s attributable profit slipped 28% to P1.03 billion in the second quarter, from P1.43 billion during the same period a year ago. For the first six months of 2017, the figure stood at P1.45 billion, 36% lower than the P2.27 billion in the previous year.
Lopez Holdings, which has a 56% economic interest in the media giant, attributed the lower profits for ABS-CBN to the slower ad revenues due to the absence of election-related revenues.
A holding company, Lopez Holdings receives revenues from asset sales and dividends from investees.
