Nov. 11--AYALA Corp. said net income in the first nine months of 2017 surged 18 percent to P23.2 billion, driven by the strong performance of its property and power units.
For the third quarter alone, Ayala's net income jumped 39 percent from a year ago to P8.2 billion, bolstered by the robust earnings of Ayala Land, Inc. (ALI), Bank of the Philippine Islands (BPI) and AC Energy.
"This was lifted by transaction gains realized by Globe Telecom from the investment of Ant Financial in its fintech unit Mynt. Moreover, the income realized by AC Energy from services that enabled the financial close and construction of a power plant lifted Ayala's net earnings in the third quarter. Isolating these transaction gains, Ayala's third quarter net income grew 26 percent," the company told the Philippine Stock Exchange.
Its property arm ALI reported a nine-month profit of P17.8 billion, boosted by the strong performance of its residential segment, office-for-sale, and commercial leasing businesses.
Residential revenues increased 30 percent to P57.3 billion on new bookings and project completions by its Alveo and Avida brands. During the nine months, ALI launched P53.9 billion worth of residential and office-for-sale projects.
Its telecommunications business, Globe Telecom, posted net income of P13 billion, up 11 percent from last year on continued demand for data services. Profits were further lifted by a P1.9-billion one-time gain from the strategic partnership forged by Mynt.
AC Energy netted P2 billion in the first nine months, 73 percent higher year-on-year, on the fresh contribution from its geothermal asset in Indonesia, boosted by services income derived from the financial close of a new power plant.
AC Industrials reported net income of P1 billion, 5 percent higher than the previous year, on the solid performance of its electronics manufacturing business, which offset weaker contributions from its vehicle retail segment.
"Most of our business units have continued to achieve solid growth this year," Ayala President and Chief Operating Officer Fernando Zobel de Ayala said.
"We are pleased to note that even excluding the transaction gains from various strategic initiatives for the period, Ayala's nine-month net income still expanded 18 percent from the previous year," he added.
On the other hand, banking arm Bank of the Philippine Islands (BPI) posted a 1.9 percent decline in net income to P17 billion in the absence of significant gains from a capital exercise in the previous year, the company said.
Water business Manila Water Co. posted flat earnings of P4.9 billion due to higher costs and expenses from expansion initiatives, which weighed on revenue growth.
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