MANILA, Philippines - Lopez Holdings reported its net income hit P2.366 billion in the first 9 months of the year.
The company's 9-month profit fell 62% from the P6.185 billion in net income, as restated, a year ago. This was primarily due to the absence of one-off gains during the period. Last year, First Philippine Holdings Corporation (FPH) sold a 2.66% stake in Meralco and recorded a gain on business combination following the listing of Rockwell Land Corporation.
Lopez Holdings said its unaudited consolidated revenues dropped 10% year-on-year to P67.853 billion from P75.669 billion as subsidiary FPH registered declines in the sale of electricity and in the sale of merchandise.
"We expect expenses at FPH and ABS-CBN to increase in the short term, as they pursue investments consistent with their growth agenda. We also expect them to continue providing superior value to their customers as the foundation of sustainable growth,” said Lopez Holdings president, chief operating officer and chief finance officer Salvador G. Tirona.
FPH saw a 70% decrease in net income attributable to equity holders of the parent to P3.474 billion in 9-month period, primarily due to the absence of a gain from sale of investment.
FPH revenues were fell 10% to P67.861 billion from P75.763 billion, on lower electricity and merchandise sales.
At the same time, ABS-CBN reported a 22% jump in net income for the 9-month period to P1.891 billion, on higher advertising revenues.
As of September 30, 2013, Lopez Holdings held a 56.6% economic interest in ABS-CBN and 46.2% in FPH. Under recently adopted Philippine Accounting Standards, Lopez Holdings has de-consolidated ABS-CBN Corporation and now consolidates FPH and in its financial statements.