Ayala Corp. earnings up due to units’ increased contributions

Ayala Corp., the Philippines’ largest business group, reported that its net income in the third quarter of the year rose by double digits as contributions from units improved.

In a statement, Ayala Corp. said jumped 13 percent to P1.7 billion from July to September. Earnings for the nine-month period dropped by 26 percent to P5.8 billion but 14-percent higher without gains from share sales realized last year.

Combined equity earnings from core business units, Ayala Land Inc. (ALI), Bank of the Philippine Islands (BPI), and Globe Telecom (Globe) grew by 16 percent during the quarter as their net incomes registered strong growth during the period.

However, this was offset by the mixed performance of units under AC Capital.

Equity earnings in the nine month period ending September remained stable at P6.8 billion.

“Core business units remained resilient despite the difficult operating environment," Ayala president and chief operating officer Fernando Zobel de Ayala said. “With positive trends in the third quarter, we are optimistic about the continued growth trajectory of our businesses particularly as they tap new market segments and explore new geographies. We also continue to support their growth initiatives as part of a broader plan to constantly enhance and optimize value from our portfolio."

Recently, the company increased its stake in Manila Water to 43.3 percent from 31.7 percent as it signed a sale agreement with United Utilities Inc. to acquire the latter’s 11.6-percent interest in its water unit.

The move is seen to enhance the company’s value, given Manila Water’s growth potential as it looks to expand beyond its concession area.

The company’s cash position remains strong at P26.4 billion, half of which is easily “deployable" for investments and acquisitions.

Eric Francia, Ayala managing director and head of corporate strategy, said the company is looking at a wide array of prospects in the conglomerate’s acquisition bid.

GMA

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