Saturday, 14 November 2009

More companies report earnings (again) -- Ayala Corp, Megaworld,

Ayala Corp. Q3 profits up 13% to P1.7B
Kristine Jane R. Liu

THE IMPROVING business environment during the past two quarters pulled up profits of the country’s oldest conglomerate from July to September.

In a statement on Friday, Ayala Corp. said net income during the third quarter picked up by 13% to P1.7 billion over the same period last year. This puts net income from January to September at P5.8 billion, 26% lower year-on-year.

Excluding gains from the sale of its shares in unit Globe Telecom, Inc., Ayala Corp. said net income during the nine-month period would have grown by 14% compared with the same period last year.

"Our core business units remained resilient despite the difficult operating environment. 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," Ayala Corp. President Fernando Zobel de Ayala said.

He added that the holding company continues to support its units’ growth initiatives as part of a broader plan to constantly enhance and optimize value from our portfolio.

Combined equity earnings from core business units -- Ayala Land, Inc. (ALI), Bank of the Philippine Islands (BPI), and Globe Telecom (Globe) grew by 16% during the quarter on back of a strong growth during the period. This helped offset the mixed performance of units under AC Capital, whose combined equity earnings during the nine-month period remained stable at P6.8 billion.

Ayala Corp. said trends in the real estate continues to be encouraging with net income during the third quarter increased by 12% year-on-year on back of an improved demand for residential projects.

ALI’s earnings in the nine-month period however was still lower by 24% to P2.9 billion as a result of a slow first quarter.

Meanwhile, an increase in BPI’s average asset base, growth in net interest income and the declining interest rate environment allowed the bank to realize trading gains from the sale of part of its securities inventory.

The bank reported a net income of P7.3 billion in the nine-month period or 38% higher from the same period last year.

Telecom unit Globe’s net income on the other hand rose by 12% to P9.9 billion with core earnings stable at P9.4 billion year-to-date September. Globe’s broadband subscribers nearly tripled versus last year to over 500,000, while its wireless mobile subscriber base contracted to 23.1 million at the end of the period.
The gradual recovery in the electronics sector during the third quarter has also improved the performance of its electronics manufacturing units, Integrated Microelectronics, Inc. which posted a net income of P170 million from January to September, a turnaround from a net loss incurred last year.

Net income of water unit Manila Water Co. also grew by 14% to P2.3 billion from January to September on back of a 6% increase in its core revenues.
Ayala Corp. has recently increased its stake in Manila Water to 43.3% from 31.7% after it bought the 11.6% stake of partner United Utilities, Inc. in the water distributor.

The holding company said the move is viewed value accretive given the growth potential of Manila Water as it looks to expand beyond its concession area.

The holding company also continues to actively invest in the business process outsourcing (BPO), announcing recently the merger of its contact center investment, eTelecare Global Solutions with US based Stream Global Services, Inc., a leading global call center company. This combination creates one of the five largest global call center companies, with approximately 30,000 employees in more than 50 sites in 22 countries worldwide, and revenues of approximately $800 million.

Subsequently, Ayala’s knowledge process outsourcing (KPO) unit, Integreon, announced the acquisition of Grail Research, the strategic research and decision support unit of the Monitor Group, which, in turn is one of the world’s leading management consulting companies.

The holding company said the acquisition accelerates the expansion of Integreon’s business intelligence, research and analytics business into high-end, custom market research, and strengthens Integreon’s position as one of the leading integrated KPO companies globally.

"These transactions are part of Ayala’s strategy to invest in global BPO companies that are in the top five in their respective sectors worldwide, and can leverage the Philippines’ competitive advantages," the holding company said.

In the third quarter, the combined revenues of Ayala’s BPO companies grew by 6% to $93.5 million versus the second quarter. Shares of the company slipped 1.62% or P5 to P302.50.


Megaworld bares P3B Q3 net income
Kristine Jane R. Liu

DEMAND FOR vertical residential projects continue to remain robust during the third quarter, pushing up the profits of real estate firms Andrew Tan-led Megaworld Corp. and Gotianun-led Filinvest Land, Inc.

In a stockmarket disclosure on Friday, Megaworld said it posted a net income of P3 billion from July to September, up by 5% from the same period last year. Megaworld said the growth comes from the continued strength of its real estate sales and rental income.
Revenues during the period meanwhile amounted to P12.92 billion, slightly higher from P12.48 billion in the same period last year. Of which, real estate sales contributed P9.09 billion while rental income from its business process outsourcing office and retail developments hit a high of P1.42 billion, up by 41% from P1 billion year on year basis.

Megaworld is the largest residential condominium developer and BPO office landlord in the Philippines. It pioneered the development of community townships that fit a "live-work-play-learn" mold.

To date, Megaworld has five townships within Metro Manila, as well as stand-alone projects in the Makati central business district and recently entered into a joint-venture agreement with BCDA for an 8.38-hectare North Bonifacio property in the Fort Bonifacio.

Megaworld has committed to invest at least P15.6 billion over the next 20 years to develop the North Bonifacio property, located in the northern district of Fort Bonifacio and extending all the way to Kalayaan Avenue.


Meanwhile, Filinvest increased its profits by 4% to P1.198 billion from January to September, despite revenues being flat at P3.61 billion.

The Gotianun-company said real estate sales hit P2.269 billion while rental income contributed P885 million, 3% more than the P861 million generated last year.
Filinvest is currently offering up to P5 billion in fixed-rate bonds, targeted for issuance on Nov.19. The three-year bonds will yield an interest of 7.52% per annum, while the five-year bonds will yield 8.46%.


TVI rebounds, posts Q3 income


Phoenix Petroleum profits jump 18%

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