Lopez Holdings income declines 36% in 2017
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.