Makati—(PHStocks)—Ayala Corp. (PSE: AC) recorded a net income of PhP5.8 billion in the first quarter of the year, expanding 15% from a year ago, as most of its businesses performed well with largest growth coming from its real estate, power generation, and automotive businesses.
This strong first quarter results was driven by the equity earnings contribution from the conglomerate’s business units, which reached PhP7.2 billion, 11% higher year-on-year. Ayala Land and Manila Water posted double-digit growth in equity earnings contribution, up 16% and 13%, respectively. Meanwhile, Ayala Automotive rebounded in the first three months of the year with equity earnings contribution expanding fivefold on the back of strong sales in the Isuzu and Honda brands as its Volkswagen sales started to ramp up.
“As we conclude our medium-term plan this year and embark on a new five-year growth strategy, we are encouraged by the upbeat first quarter results of our businesses. We believe the Philippines continues to be fundamentally strong, and we expect most of our businesses to continue growing at a healthy pace,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
Ayala Land Inc. (PSE: ALI) registered a 14% growth in net income to PhP4.7 billion on the back of robust residential, office space sales, and commercial leasing segments and higher margins across all product lines. Real estate revenues, inclusive of interest income on accretion, grew 8% to PhP26.7 billion supported by the steady performance of its property development and commercial leasing businesses.
Residential revenues expanded 14% to PhP15.9 billion on higher bookings and project completion. Reservation sales rose 6% to PhP24.7 billion. This was supported by improved revenues from the sale of office space, which jumped 33% to PhP1.3 billion on bookings primarily from Alveo Financial Tower in Makati Central Business District.
Revenues from shopping center and office leasing segments improved during the period on contribution of newly opened malls and office spaces. Shopping center revenues expanded 15% to PhP3.6 billion, while office leasing revenues grew 13% to PhP1.4 billion. Together with hotels and resorts, shopping centers and office leasing, the recurring income business contributed 40% of Ayala Land’s net income in the first quarter.
Globe Telecom (PSE: GLO) sustained its robust topline growth bolstered by gains across its data-related product segments, with net income growing 3% to PhP4.3 billion in the first three months of the year.
Globe’s bottomline growth was tempered by the PhP6.2 billion in depreciation expenses during the period. A 40% jump from a year ago, the depreciation expenses resulted from the one-time adjustments from end of useful life of certain assets, the additional depreciation charges from Bayan during the quarter which were not part of the depreciation in the previous year, as well as the depreciation of new assets completed in 2015.
Without the impact of non-recurring charges, foreign exchange gains, and mark-to-market charges, Globe’s core net income stood at PhP4.2 billion in the first quarter, flat from a year ago.
Service revenues reached PhP29.9 billion in the first quarter, a 14% improvement from its year-ago level. This strong growth was partly driven by contribution from Bayan amounting to PhP1.5 billion.
Customer base expansion in both the prepaid and postpaid segments drove the 7% growth in mobile revenues, which reached PhP23.1 billion from a year ago. Globe’s mobile subscribers jumped 18% to 57.3 million at the end of the first quarter.
Mobile data service revenues soared 62% to PhP9.1 billion owing to the increasing smartphone penetration and availability of low-priced data capable devices combined with Globe’s attractive offerings and improved data network. This was partly offset by the decline in core mobile voice and SMS revenues by 11% and 15%, respectively as traffic shifted to data services.
Similarly, Globe’s group home broadband business, which includes Bayan, posted robust growth with revenues expanding 51% to PhP3.5 billion and subscriber base improving 41% to 1.1 million. Strong demand for internet and data connectivity combined with its bundled entertainment-related content offerings drove Globe’s home broadband revenues during the period. Globe’s corporate data business likewise soared, climbing 51% to PhP2.3 billion on increased demand for service solutions and cloud-based services from corporate clients.
This translated to a consolidated EBITDA of PhP13 billion, 18% higher year-on-year, with EBITDA margin at 44%, higher than the 42% recorded the previous year.
Bank of the Philippine Islands (PSE: BPI) reported a net income of PhP5 billion in the first quarter of the year, up 1.3% year-on-year as its core lending business, non-interest income, and securities trading continue to improve.