AYALA Corp. on Thursday said core net income, excluding one-off items, dropped 7 percent to P22.1 billion in the first half from a year earlier as weaker contributions from subsidiary Ayala Land Inc. and lower nonoperating income offset gains from the banking, telecommunications and power businesses.
On a reported basis, net income fell 2 percent to P22.9 billion, reflecting the net impact of one-off items during the period, the conglomerate said in a disclosure.
Ayala said earnings growth at Globe Telecom Inc. and AC Energy and Infrastructure Corp., stable results from Bank of the Philippine Islands and improved aggregate results from its emerging businesses helped cushion the weaker performance of Ayala Land.
Lower nonoperating income also weighed on results, mainly due to reduced dividend income from Manila Water Co. following the full payment of the first batch of divested preferred shares and Ayala’s reduced stake in Mynt after Mitsubishi Corp. entered AM 50 Ventures Inc. in 2025.
BPI’s net income in the first half was flat at P32.8 billion as strong revenue growth was offset by higher operating expenses and provisions. Return on equity stood at 13.8 percent.
The bank’s total revenues increased 12 percent to P104 billion, while total loans grew 12 percent to P2.7 trillion.
Globe’s normalized net income rose 10 percent to P11 billion on record gross service revenues and higher earnings before interest, taxes, depreciation and amortization. Its core net income, however, declined 2 percent to P10.2 billion as higher interest expenses offset top-line growth.
Energy platform ACEN’s core net income rose 21 percent to P4.2 billion on higher generation output and more favorable market conditions.
Ayala Land posted net income of P11.5 billion, down 19 percent from a year earlier, as lower property development revenues outweighed continued growth in its leasing and hospitality businesses.
Property development revenues fell 22 percent to P41 billion, while reservation sales declined 19 percent to P53.5 billion.
The company’s leasing and hospitality revenues, however, increased 9 percent to P25.2 billion, supported by growth across its shopping center, office, hotels and resorts, and industrial real estate businesses.
Ayala said it maintained a strong liquidity position, with consolidated cash reaching P75.6 billion at the end of June.
“A well-diversified portfolio coupled with good traction from initiatives undertaken over the past few years have produced solid results even in a period of geopolitical and macroeconomic challenges,” Ayala President and CEO Cezar Consing said.
“Seeing how our portfolio has performed in a challenging environment gives us confidence of the considerable value that can be created in a more benign environment,” he added.
The company’s emerging businesses posted mixed performances. AC Health’s revenue rose 25 percent to P7.5 billion but posted a P167-million net loss as expansion pushed up manpower and marketing costs.
ACMobility incurred a core net loss of P57 million, reversing from a P34-million profit a year earlier, on higher inventory costs due to a weak peso and softer performances from its Kia and Isuzu brands.
Integrated Micro-Electronics Inc.’s net income, excluding losses from Via Optronics, jumped 50 percent to $14 million, while AC Logistics narrowed its net loss by 58 percent to P264 million.
Ayala shares on Thursday dropped P10.00, or 1.95 percent, to close at P502.00 each amid a 1.23-percent decline for the benchmark Philippine Stock Exchange index.
