LISTED conglomerate Ayala Corp. reported a 12.5% increase in attributable net income for the second quarter (Q2), reaching P9.21 billion compared with P8.19 billion in the same period last year, driven by higher revenues and growth across its business units.
Second-quarter revenue rose by 8.7% to P92.67 billion compared with P85.27 billion in the previous year, Ayala Corp. said in a regulatory filing on Wednesday.
For the first half of the year, Ayala Corp. achieved a 21% increase in net income, amounting to P22.3 billion, compared with P18.4 billion in the same period last year.
Revenue for the January-to-June period increased by 10% to P179.94 billion compared with P164.24 billion in 2023.
First-half core net income, which excludes significant one-off items, rose by 18% to P24.3 billion, driven by higher contributions from the Bank of the Philippine Islands (BPI), Ayala Land, Inc. (ALI), Globe Telecom, Inc., and ACEN Corp.
The conglomerate also received a boost from AC Energy & Infrastructure.
“We are pleased with the sustained growth trajectory of our core earnings. We will continue to grow our quality businesses and explore initiatives to improve shareholder value,” Ayala President and Chief Executive Officer (CEO) Cezar P. Consing said.
For the banking business, BPI recorded a 22% increase in first-half net income, reaching P30.6 billion. Total revenue climbed by 24% to P81.2 billion, as net interest income surged by 22% to P61.3 billion.
Operating expenses rose by 22% to P38.3 billion due to higher manpower, transaction processing, and technology costs.
In the real estate sector, ALI recorded a 15% increase in first-half net income, amounting to P13.1 billion. Total revenue surged by 28% to P84.3 billion.
Property development revenues improved by 34% to P51.9 billion, while residential reservation sales climbed by 17% to P68.4 billion. Commercial leasing revenues rose by 10% to P22.1 billion.
In the telecommunications sector, Globe saw a 1% increase in net income to P14.5 billion, attributed to one-time gains from the company’s tower sale program.
Gross service revenue increased by 2% to P82.2 billion, supported by growth in corporate data and mobile data.
In the power segment, ACEN reported a 49% increase in first-half net income, reaching P6.3 billion, driven by additions in operating capacity across major markets, including the Philippines, where the company improved its position as a net seller in the local electricity spot market.
Total renewable attributable output increased by 42% to 2,908 gigawatt-hours, as production from newly operational plants outweighed the seasonal drop in output from renewable energy sources in the second quarter.
Meanwhile, Ayala Corp. recorded mixed performances across its portfolio investments.
Ayala Healthcare Holdings, Inc. widened its net loss to P327 million due to costs related to the ramp-up of its cancer hospital in Taguig City. Revenues rose by 12% to P4.4 billion, driven by contributions from both its hospital and clinics segment as well as its pharmaceutical group.
AC Industrial Technology Holdings, Inc. narrowed its net loss to P5.3 billion from P5.8 billion, due to lower impairments.
Integrated Micro-Electronics, Inc. (IMI) recorded an $8.8-million net loss as revenues fell by 18% to $566 million, attributed to continued market softness.
“IMI is focused on improving financial health and operational effectiveness through various initiatives, including simplifying its organizational structure, eliminating operational redundancies, and reallocating resources toward high-growth and high-margin segments,” the conglomerate said.
ACMobility sustained progress in broadening its portfolio of passenger vehicles and EV charging infrastructure. The company recently launched the Kia Sonet in June and the BYD Sealion 6 DM-i in July, expanding its lineup of electric, hybrid, and traditional vehicles. The company has rolled out 70 charging stations in 31 locations as of end-June.
In a separate statement, ALI’s real estate investment trust, AREIT Inc., reported a 44% increase in first-half net income, reaching P2.9 billion, with revenues surging by 43% to P4.2 billion.
“AREIT’s stellar performance in the first half was driven by its acquisitions, such as the One Ayala Avenue East and West Office Towers, Glorietta 1 and 2 Mall, and office buildings at Ayala Center Makati, MarQuee Mall in Pampanga, and the Seda Hotel in Lio, El Nido,” the company said.
AREIT’s occupancy rate was pegged at 96%, higher than the industry average. The company’s assets under management (AUM) stand at P88.6 billion, comprising offices, malls, hotels, and industrial land.
“AREIT is set to quadruple its AUM this year from the time we listed in 2020 — a fitting milestone as we celebrate our fourth anniversary since we listed in 2020 at the height of the pandemic,” AREIT President and CEO Carol T. Mills said.
“On account of the portfolio’s solid track record and the significant addition of prime flagship assets, revenues soared 467% from P907 million to P4.2 billion, dividends doubled from P0.28 to P0.56 per share, and total shareholder return to date reached the highest among Philippine REITs at 74% since the IPO,” she added.
AREIT is expected to grow its AUM to P117 billion this year upon regulatory approval of the asset-for-share swap with its sponsor, ALI, and its subsidiaries and related companies for P28.6 billion worth of prime assets.
These properties include the Ayala Triangle Gardens Tower Two Office building, Greenbelt 3 and 5, Holiday Inn in Ayala Center Makati, Seda Ayala Center Cebu, and a 276-hectare land in Zambales for solar power plant operations.
On Wednesday, Ayala Corp. shares increased by 2.83% or P17 to P618 per share, while AREIT stocks rose by 1.17% or P0.45 to P39 per share. — Revin Mikhael D. Ochave
