AYALA CORP. reported a 17% increase in second-quarter (Q2) attributable net income to P10.76 billion from P9.21 billion a year ago, supported by higher contributions from its banking and real estate businesses.
Revenue for the quarter fell slightly by 2.3% to P90.52 billion from P92.67 billion a year earlier, while operating expenses declined 8.3% to P68.09 billion from P74.24 billion, the company said in a regulatory filing on Wednesday.
For the first half, Ayala Corp. reported a 5% increase in attributable net income to P23.36 billion from P22.29 billion last year due to higher impairments recorded in 2024.
Core net income, which excludes one-off items, dropped by 2% to P23.7 billion.
The conglomerate saw higher contributions from banking subsidiary Bank of the Philippines Islands (BPI), Ayala Land, Inc. (ALI), and its portfolio businesses, which partly offset softer earnings from telecommunications unit Globe Telecom, Inc. and energy and infrastructure unit AC Energy & Infrastructure Corp. (ACEIC).
“While our telco and energy businesses have some catching up to do, our full year targets remain achievable. We are also encouraged to see our portfolio businesses showing better numbers,” Ayala President and Chief Executive Officer Cezar P. Consing said.
The banking segment, led by BPI, posted an 8% increase in net income to P33 billion. Total revenue increased by 14% to P92.6 billion on higher net interest income.
Operating expenses rose by 12% to P42.7 billion due to higher manpower, technology, and volume-related costs.
In the real estate business, ALI reported an 8% growth in net income to P14.2 billion, led by its property development, leasing, and hospitality segments. Revenue fell by 1% to P83.1 billion amid mall reinvention works and lower service revenues.
ALI launched five residential projects worth P40.5 billion in the first half, largely in the premium segment, headlined by Ayala Land Premier’s Laurean Residences in Makati last June.
The telecommunications business, led by Globe, saw a 14% drop in net income to P12.4 billion, as higher equity earnings from affiliates and a dilution gain in Mynt were offset by higher depreciation, interest expenses, and non-operating charges.
Gross service revenue fell by 2% to P80.2 billion on lower revenues across telco and non-telco segments.
In the power segment, ACEN posted an 88% drop in net income to P763 million due to a P2.7-billion impairment for the Lac Hoa and Hoa Dong wind projects in Vietnam.
Core net income fell by 24% to P3.5 billion due to weaker irradiance in the Philippines and Australia, damaged wind farms in Ilocos Norte, depressed local spot market prices, and depreciation expenses from newly operationalized plants.
ACEN’s parent company, ACEIC, recorded a 39% drop in core net income to P4.1 billion because of reduced contributions from ACEN and thermal plants, lower parent net interest income, and foreign exchange losses.
Meanwhile, Ayala Corp. said its portfolio investments recorded strong performances in the first half.
The conglomerate’s healthcare arm, Ayala Healthcare Holdings, Inc. (AC Health), trimmed its core net loss to P100 million from P327 million last year as stronger results from the provider group more than offset muted results from the pharmaceutical segment.
On Aug. 8, Singapore-based investor ABC Impact acquired about a 16% stake in AC Health. The investment aims to support AC Health’s expansion across hospitals, clinics, and pharmacies.
“The recently announced investment in AC Health by Singapore’s ABC Impact demonstrates our ability to bring in strategic partners to help scale our businesses,” Mr. Consing said.
ACMobility grew its net income to P122 million from P24 million, led by higher dividends from Isuzu, equity earnings from Honda, and the sustained positive contribution of BYD.
Chip manufacturer Integrated Micro-Electronics, Inc. posted a net income of $7.6 million, a turnaround from the $8.8-million net loss last year, as greater operational efficiencies supported profitability.
AC Logistics narrowed its net loss to P631 million from P773 million due to the closure of its last-mile business and ongoing rationalization efforts.
Ayala Corp. shares climbed by 1.69%, or P10, to P600 per share on Wednesday. — Revin Mikhael D. Ochave
