By James A. Loyola
Ayala Corporation, the country’s oldest conglomerate, reported that its net income expanded twofold in the first half of the year to P37.8 billion from a year ago, driven by the solid growth of its banking, telecommunications, and real estate units.
In a disclosure, the firm said earnings were also boosted by gains from value realization exercises in its emerging businesses.
Equity earnings from Ayala’s business units, which include divestment gains from the merger of AC Education with iPeople and partial divestment of AC Energy’s thermal assets doubled to P41.7 billion in the first semester.
“Our first-half results reflect the strength of our core holdings in real estate, banking, and telecommunications. This was complemented by the value realization initiatives in our energy business,” Ayala President and Chief Operating Officer Fernando Zobel de Ayala said.
He added that “we are pleased with the rapid growth of AC Energy, its growing contribution to our overall profitability, and the regular value realization exercises to deliver investment returns to Ayala.”
Ayala Land recorded a 12 percent growth in net income to P15.2 billion while Bank of the Philippine Islands profits rose 25 percent to P13.7 billion year-on-year.
Manila Water saw a 25 percent decline in the first-half net income to P2.5 billion, Globe Telecom posted a P12 billion net income, while AC Energy’s net profits reached P23.2 billion.
Meanwhile, macro-political risks, sectoral headwinds, and component supply tightness dragged AC Industrials’ performance in the first half to a net loss of P510 million.