LISTED conglomerate Ayala Corp. recorded a 4% decline in its first-quarter (Q1) net income to P12.6 billion from P13.07 billion in the same period last year, due to weaker contributions from its power and telecommunications (telco) units.
First-quarter core net income, which excludes one-off items, likewise fell by 4% to P11.3 billion, Ayala Corp. said in a regulatory filing on Tuesday.
“We are seeing strong starts from our banking, real estate, and fintech businesses. Our telco and energy businesses have some catching up to do. Our smaller, newer companies are turning the corner. We are constructive on the year,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing said.
The power business, led by ACEN Corp., saw a 28% drop in first-quarter net income to P2 billion due to lower generation from Philippine wind turbines rendered offline by typhoons in the fourth quarter last year, softer local electricity spot market prices, and depreciation expenses from newly operationalized plants.
For its telecommunications segment, Globe Telecom, Inc. recorded a 22% decline in core net income to P4.5 billion, weighed down by lower gross service revenues, higher financing costs, and increased depreciation expenses.
The Ayala-led telecommunications company, however, saw its Q1 attributable net income rise by 2.65% to P6.98 billion, driven by contributions from its e-wallet platform GCash.
“We reaffirm our outlook for 2025. We remain on track to deliver low- to mid-single-digit growth in service revenues, driven by a very resilient portfolio,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said during a media briefing.
For the first quarter, Globe’s consolidated revenue declined by 3.42% to P43.76 billion from P45.31 billion a year ago.
Costs and expenses for the period increased by 2.1% to P40.54 billion from P39.72 billion in the first quarter last year.
“While the first quarter had some headwinds, the signals that we are actually seeing points to a stronger set of quarters ahead,” Mr. Cruz said.
“The industry is shifting rapidly that is why we are actually revisiting our guidance so we can respond with agility and seize opportunities without missing a beat,” he said.
Meanwhile, the banking business, led by the Bank of the Philippine Islands (BPI), grew its net income by 9% to P16.6 billion. Total revenue increased by 13% to P44.7 billion, driven by higher net interest income and an improved net interest margin.
The real estate segment, led by Ayala Land, Inc. (ALI), recorded a 10% increase in net income to P6.9 billion. Revenue rose by 6% to P43.6 billion on higher property development bookings, as well as healthy leasing and hospitality operations.
Ayala Corp. said its healthcare unit, AC Health, narrowed net losses to P59 million on improved facility utilization and higher margins.
Logistics subsidiary AC Logistics Holdings Corp. also reduced its core net loss to P303 million, driven by cost savings and margin improvements following the closure of Entrego and the last-mile operations of AIR21.
AC Industrials narrowed its core net loss to P115 million, supported by the turnaround of listed chip manufacturer Integrated Micro-Electronics, Inc. (IMI), and the reduced stake in Merlin Solar, which offset the loss in ACMobility that widened to P168 million due to higher marketing and manpower expenses from the ramp-up of the BYD brand and its charging infrastructure network.
In a separate disclosure, ALI’s real estate investment trust AREIT, Inc. posted a 43% increase in first-quarter net income to P2.1 billion, driven by contributions from previously infused mall, office, and hotel assets, which began in July last year.
Revenue rose by 38% to P2.9 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 42% to P2.1 billion. The company’s properties registered a 99% overall occupancy rate at the end of the quarter.
AREIT’s assets under management (AUM) are expected to reach P138 billion following a P21-billion asset infusion under a property-for-share swap deal with ALI, involving eight commercial assets in Visayas and Mindanao.
“We will see our AUM quintuple to P138 billion from our initial public offering, keeping us on track to reach our goal of reaching $3 billion within the coming years, scaling to levels comparable with major regional REITs,” AREIT President and Chief Executive Officer Mr. Jose Eduardo A. Quimpo II said.
Ayala Corp. shares rose by 3.40% or P20 to P608 apiece on Tuesday. — Revin Mikhael D. Ochave and Ashley Erika O. Jose