Lopez Holdings income declines in 3rd quarter

LOPEZ HOLDINGS Corp. suffered a 52% drop in third-quarter net income attributable to the parent firm’s equity holders to P1.41 billion from P2.92 billion in the same quarter last year, its financial report to the stock exchange shows.

This came despite a 23.2% rise in revenues during the quarter to P26.46 billion, which was outpaced by a 34.9% increase in costs and expenses to P21.16 billion. The holding firm also posted oneoff losses, reversing the other income it recorded in the same quarter last year.

In a statement on Thursday, Lopez Holdings said its nine-month net income attributable to the parent firm’s equity holders slipped by 43% to P3.17 billion from P5.59 billion “on account of one-off losses and the absence of one-off gains at its associates.”

Unaudited consolidated revenues as of end-September rose by 19% to P77.94 billion from P65.63 billion in the same nine-month period last year.

Lopez Holdings said associate First Philippine Holdings Corp. (FPH) recorded a 49% drop in net income to P4.58 billion in the first nine months, as it booked one-off losses related to debt pre-payments of consolidated units First Gas Power Corp. and Energy Development Corp.

FPH registered one-time gains from liquidated damages and arbitration settlement proceeds during the period, it added.

“The one-off losses, absence of one-off gains and unfavorable forex movement led to the lower income,” Lopez Holdings said. “Excluding nonrecurring items, consolidated net income increased by 5% due to higher operating profits from its real estate and manufacturing units.”

The holding firm said investee ABSCBN Corp. recorded a 20% fall in net income to P2.27 billion as advertising revenues fell 3% after discounting the impact of last year’s election-related spending.

Lopez Holdings said as of Sept. 30, it owned 46% of FPH and 56% economic interest in ABS-CBN. The firm, formerly Benpres Holdings Corp., is the Lopez family’s holding company. Its major investees are publicly listed FPH and ABS-CBN.

On Thursday, shares in Lopez Holdings added 9 centavos or 1.6% to close at P5.73 each. —