Lopez Hold­ings in­come de­clines 36% in 2017

Business World - - CORPORATE NEWS - — Krista An­gela M. Mon­teale­gre

THE ab­sence of one-time gains that in­flated prof­its in 2016 dragged earn­ings Lopez Hold­ings, Inc. last year.

In a dis­clo­sure to the stock ex­change on Tues­day, the hold­ing firm of the Lopez fam­ily said its net in­come at­trib­ut­able to eq­uity hold­ers reached P4.225 bil­lion last year, down 36% from the P6.557 bil­lion re­ported in 2016.

Weigh­ing on prof­itabil­ity was the lack of ex­tra­or­di­nary items booked by First Philip­pine Hold­ings Corp. (FPH) in 2016 from the ar­bi­tra­tion set­tle­ment re­ceived by First Philec, Inc. and the liq­ui­dated dam­ages col­lected by First Gen Corp. for its San Gabriel power plant.

Also, ABS- CBN Corp. gen­er­ated more rev­enues in 2016 from po­lit­i­cal ads on top of im­proved rev­enues from its Pay-TV and new busi­ness ini­tia­tives.

Lopez Hold­ings’ con­sol­i­dated rev­enues in­creased 14% year on year to P104.890 bil­lion from P91.910 bil­lion on the back of higher elec­tric­ity sales of FPH sub­sidiary First Gen Corp. cou­pled with higher real es­tate and mer­chan­dise sales.

Earn­ings from in­vest­ments ac­counted for at eq­uity method fell 12%, rep­re­sent­ing the per­for­mance of ABS-CBN for the pe­riod and the share in the per­for­mance of FPH units.

Lopez Hold­ings held 46% of FPH and 56% eco­nomic in­ter­est in ABS-CBN as of De­cem­ber 2017.

In­clud­ing non-re­cur­ring items, FPH re­ported a 41% de­crease in net in­come at­trib­ut­able to eq­uity hold­ers to P5.854 bil­lion in 2017 from P9.933 bil­lion in 2016.

Re­cur­ring net in­come of FPH stood at P6.829 bil­lion in 2017, 15% higher than the P5.929 bil­lion in the pre­vi­ous year, as rev­enues climbed 14% to P104.890 bil­lion from P91.910 bil­lion a year ago.

Earn­ings of ABS- CBN went down by a tenth to P3.164 bil­lion from P3.525 bil­lion, fol­low­ing an 11% de­cline in ad sales with­out the im­pact of elec­tion- re­lated spend­ing that boosted in­come in 2016.

Rev­enues of the broad­cast giant reached P40.698 bil­lion, two per­cent lower than P41.631 bil­lion in the pre­vi­ous year, as con­sumer sales grew 9%.

In­cor­po­rated in 1993, Lopez Hold­ings was for­merly known as Ben­pres Hold­ings Corp.

Shares in Lopez Hold­ings fell 12 cen­tavos or 2.47% to close at P4.73 apiece on Tues­day.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.