MANILA, Philippines - Ayala Corp., one of the country's biggest conglomerates, reported a 23% increase in profits in the first half of the year, driven by strong revenues from its property, banking and water utility businesses.
In a statement, Ayala said its consolidated net income hit P6.1 billion in the January to June period.
Core net income also went up 35% to P6.3 billion from a year ago, excluding the impact of Globe Telecom's accelerated depreciation due to its network modernization program.
The higher equity earnings from Ayala Land, Bank of the Philippine Islands, and Manila Water offset the slight drop in equity earnings from Globe.
The equity earnings of core and non-core businesses stood at P7.7 billion in the first semester, 24% higher than the P6.2 billion a year ago.
"We are encouraged to see the strong trajectory of our core businesses sustained through the first half of this year. The performance reflects the robust domestic demand and the fundamental strength of the economy. We envision our products and services to continue to tap this growing demand as we expand to new market segments and develop a more pervasive presence across the country," Ayala President and Chief Operating Officer Fernando Zobel de Ayala said, in a statement.
Ayala Land reported 28% increase in profit to P4.33 billion in the first half, from P3.38 billion during the same period last year, as its business lines continued to perform strongly.
BPI's net income rose 52% to P9.4 billion in the first half of the year, on the higher revenues
was driven by the 24% rise in revenues.
Manila Water's profits increased by 31% to P2.6 billion in the first half, due to the sustained increase in revenues from both the East Zone and non-East Zone
However, Globe Telecom, the country's second largest telecommunications company, reported a 10% drop in net income to P4.96 billion in the first half of the year from P5.49 billion a year ago, due to higher expenses from its investments in its network infrastructure and IT transformation program.
Ayala's electronics unit Integrated Micro-Electronics (IMI) said its first half net income surged 173% to $3.1 million from $1.1 million a year ago, as it saw improved revenues from its Philippine operations and expanded its businesses in Europe and Mexico.
Ayala's business process outsourcing unit LiveIt's share of revenues stood at $166 million, up 9% year-on-year.