By P.R. Venkat

Ayala Land Inc.'s first-half net profit fell 70% compared with the same period a year earlier as Covid-19 restrictions imposed by the Philippines government hurt residential project sales and affected business for its malls and hotels.

Net profit was 4.5 billion Philippines pesos ($91.65 million), the company said Friday.

Revenue dropped 50% to PHP41.2 billion.

"Although we are seeing some positive signs of recovery in certain product lines, we expect the remainder of the year to be extremely challenging," Ayala Land's chief executive Bernard Vincent O. Dy said.

The company's capital expenditures reached PHP34.8 billion in the first half, mainly for residential developments and commercial leasing assets.

Its full-year capex estimate has been adjusted to PHP69.8 billion from the previously planned PHP110 billion.

Write to P.R. Venkat at venkat.pr@wsj.com