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Tuesday, May 13, 2014

Ayala net income up 22 pct, as one-time gain offsets BPI weakness

The Philippines' oldest conglomerate registered higher earnings in the first quarter of the year driven by its core businesses and extraordinary gains, offsetting the weakness of its banking unit.

In a disclosure to the Philippine Stock Exchange, Ayala Corp (AC) said its net income climbed 22 percent to P5.5 billion in the January to March period from P4.5 billion in the same three months of 2013.

AC attributed the growth to the favorable performance of its real estate, telecommunication, water and international businesses as well as a P1.8-billion capital gain from the sale of Stream Global Services Inc, one of its investee companies, under the conglomerate's business process outsourcing (BPO) unit.

The Ayala group's profit would have increased by 24 percent year-on-year without the capital gains during the period, the impact of Bank of the Philippine Island's exceptional trading gains of P5.7 billion and Globe Telecom’s accelerated depreciation last year.

“We are glad to see the strong momentum continue across our core businesses as well as the improving profitability of our international businesses,” said AC president and chief operating officer Fernando Zobel de Ayala.

“We are confident this momentum will continue for the rest of the year as the fundamental drivers of domestic economy remain firmly in place. This will continue to underpin demand for our real estate products, banking, telecom and water services," he said.

Most of Ayala’s core businesses posted a double-digit expansion in earnings year-on-year in the first quarter. Their contribution to the conglomerate’s equity earnings jumped by a fifth year-on-year to P6.9 billion at end-March.

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