First-semester results ‘show recovery in business environment’

AYALA Corp. on Tuesday said its reported net income amounted to P5 billion in the second quarter, nearly four times higher than the P1.28 billion earned in the same period last year.

Compared with the first quarter, its second-quarter profit is seven percent lower than the P5.4 billion recorded previously.

Meanwhile, the company said its core net income declined by 15% to P6.1 billion from the first quarter as its banking and energy units posted weak results on top of the losses incurred by AC Industrial Technology Holdings Inc. and AC Ventures Holdings Corp.

The company said these outweighed the better performance of Ayala Land, Inc. and Globe Telecom, Inc.

For the first semester, Ayala said its net income amounted to P10.4 billion, rising by 31% from a low base of P7.94 billion when the country was under tighter lockdown measures brought by the pandemic.

“Our first semester results show recovery in the business environment compared to last year,” Ayala President and Chief Executive Officer Fernando Zobel de Ayala said in a statement on Thursday.

Ayala’s core net income went down by eight percent to P13.3 billion in the first semester, while its revenues grew by 24% to P122 billion.

The conglomerate’s improved first-half results were buoyed by the performance of its diversified business units.

Ayala Land’s net income grew by 34% to P6 billion, while its topline posted a 19% growth to P49 billion year on year.

Property development revenues grew by 37% to P34.1 billion as construction activities continued and as the company recognized higher bookings. Residential sales reservations were up by 26% to P48.2 billion “as local demand remained strong throughout the period.”

Meanwhile, commercial leasing revenues declined by 26% to P9.5 billion as quarantine restrictions affected operations of its malls, hotels, and resorts.

Banking arm Bank of the Philippine Islands saw its net income inch up to P11.8 billion in the first half due to lower loan loss provisions recognized. Meanwhile, total revenues went down by seven percent to P48.1 billion on lower interest income and non-interest income.

Globe generated P13 billion in profits in the six-month period, a 13% improvement as the decline in non-operating charges and upside from the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE Law, fully covered for the increase in depreciation expenses. Its topline rose by four percent to P75.5 billion as data revenues went up due to demand for home broadband.

AC Energy Corp.’s net income grew by five percent to P2.7 billion as its revenues went up by 35% to P13.4 billion. The demand for power reportedly went back to pre-pandemic levels and the company also added renewables capacity.

“However, the strong revenue growth was partially offset by high spot electricity purchases during a thermal outage. The absence of nonrecurring gains during the period also tempered income growth,” the company said.

Manila Water Co., Inc.’s net income saw a 10% growth to P2.7 billion. Meanwhile, AC Industrials narrowed its losses to P592 million from P1.8 billion.

“As a business group operating in diversified industries, we will continue to do our part in helping revitalize the economy through continued investments and supporting the country’s pandemic response and vaccination program,” Mr. Zobel said.

Shares of Ayala declined by 2.42% or P18.00 on Thursday, closing at P727.00 apiece. — Keren Concepcion G. Valmonte