REPORT OF THE PRESIDENT, CHIEF OPERATING OFFICER
AND CHIEF FINANCE OFFICER
Good morning, fellow shareholders.
For the year 2024, Lopez Holdings reported P6.343 billion in net income attributable to equity holders of the Parent. This is 123% higher than the P2.850 billion in net income attributable to equity holders of the Parent in 2023.
The Parent company booked a lower equity share in the net losses of ABS-CBN Corporation, even as First Philippine Holdings Corporation (FPH) reported a lower consolidated net income.
Lopez Holdings consolidated total assets increased by P54.602 billion or 12% to P527.649 billion as of yearend 2024 from P473.047 billion as of the previous yearend 2023. It was mainly due to higher year-end balances of noncurrent assets attributed to the PPE and goodwill and intangible assets resulting from the acquisition of Casecnan Hydro Electric Power Plant (CHEPP) in 2024 and recovered goodwill associated with the acquisition of Energy Development Corporation (EDC).
Consolidated total liabilities increased by P28.709 billion or 13% to P256.268 billion from P227.559 billion as at year-end 2024 and 2023, respectively. The increase was primarily due to additional loans availed of for the acquisition CHEPP. The Parent Company, Lopez Holdings has had no more direct obligations since 2017. Debt-to-equity ratio slightly increased at 0.59x in 2024 from 0.54x in 2023 while the book value per share increased at P21.17 a share at the end of 2024 from a book value of P19.68 a share in 2023.
Total equity attributable to Parent stood at P92.171 billion as of December 31, 2024, 11% higher than the P83.263 billion as of December 31, 2023. This is on account of the net income attributable to Parent of P6.343 billion for the year and share in the equity movements of investments in FPH and ABS-CBN through Lopez PDRs. Noncontrolling interest pertains to the share of minority interest on the total equity of LHC and FPH, as consolidated.
Moving on to our investee companies, FPH reported a 5% decrease in net income attributable to equity holders of the Parent to P14.316 billion from P15.066 billion in 2023. Recurring net income attributable (RNI) to FPH was steady at P13.8 billion. Its year-on-year consolidated revenues were slightly higher by 1% at P167.110 billion from P164.952 billion.
Eighty-two percent of FPH’s 2024 revenues came from its power generation units under First Gen Corporation (FGEN), compared to 84% in 2023.
In February 2024, FGEN’s wholly owned subsidiary Fresh River Lakes Corp. (FRLC) took over the ownership and operation of the 165 MW-Casecnan Hydroelectric Power Plant (CHEPP), a run-of-river type of facility, located in Pantabangan, Nueva Ecija. The plant helped increase the share of hydro in FGEN’s revenues to 2.9% in 2024 from 1.6% in 2023. While this positive performance was partially offset by the lower revenues of other hydro assets, due to generally low water reservoir levels, as well as lower average selling prices at the Wholesale Electricity Spot Market, it shows the potential of this plant to move forward FGEN’s renewable energy agenda.
While classified as a run-of-river hydro facility, CHEPP holds a unique attribute that sets it apart from other run-of-river projects: its impounding capability. This distinct trait allows CHEPP to optimize its dispatch and operation, including its use as a peaking plant, depending on market conditions or demand.
Moving on to the FPH property development units, Rockwell Land Corporation, a real estate subsidiary of FPH, recorded higher revenues from an increase in sales bookings and construction completion for its residential development projects. Its lease income also improved with higher average rental and occupancy rates of its Retail and Office Leasing Segments, with some contribution from the additional leasable area of Proscenium Retail Row. First Philippine Industrial Park, also under FPH, also saw better recurring industrial land lease and Ready-Built Factory (RBF) rental due to additional contracts with new locators and contract renewals with existing locators as well as higher water revenues from increased volume and tariff rates.
For ABS-CBN, it reported a 2024 net loss of P6.092 billion, 53% lower than the net loss of P12.835 billion 2023. Year-on-year revenues decreased by 6% to P17.329 billion from P18.511 billion the previous year.
In 2024, we also saw ABS-CBN subsidiary, SKY Cable Corporation entered a commercial arrangement with leading Philippine fiber broadband provider Converge Information and Communications Technology Solutions, Inc. The agreement has enabled SKY to upgrade its network and improve services to its subscribers. In addition to the network upgrade, the agreement with Converge supports SKY’s transformation program toward increased operational efficiency, greater financial discipline, and organizational improvements.
And just this last February 2025, ABS-CBN Corporation agreed to sell a portion of the land housing its headquarters to Ayala Land, Inc. The sale, covering 30,000 square meters out of the total 44,027.30 square meters of ABS-CBN’s property in Quezon City, is subject to certain conditions precedent, including Philippine Competition Commission (PCC) clearance. When it pushes through, ABS-CBN will be consolidating its operations in the remaining 1.4 hectares of the property. This will allow the company to partially pre-pay some outstanding bank loans.
It is important to note that despite the almost insurmountable challenges it has continually faced since 2020, ABS-CBN has continuously serviced its debt and has stayed current on all bank obligations. What’s more in April 2025, it was named the Gold winner in the Media and Entertainment category of FinanceAsia’s Best Companies Poll 2025. Now on its 25th year, FinanceAsia’s annual poll is a widely respected benchmark that recognizes top-performing companies across Asia. FinanceAsia’s Best Companies Poll 2025 evaluates the corporate behavior and performance of Asian companies over the past 12 months. Rankings are based on
nominations from influential investors and financial analysts, reflecting market confidence in the winning companies.
ABS-CBN continues to offer world-class content and highlight the strengths of the Filipino in its programs and event offerings.
In 2024, the movie, ‘Hello, Love, Again’, a collaboration between Star Cinema and GMA Pictures, became the highest-grossing Filipino film with over P1.4 billion in box office receipts, including $7 million from its international release. It was a sequel to the 2019 Star Cinema film, ‘Hello, Love, Goodbye’ which was the highest-grossing Filipino movie at P691 million until the 2023 release of ‘Rewind’ (P924 million), a co-production of Star Cinema, Agosto Dos Media and APT Entertainment.
‘FPJ’s Batang Quiapo’, a primetime series starring actor Coco Martin, remained unbeatable in its time slot after ‘TV Patrol’. It started airing in February 2023 and only grew stronger in 2024, with audiences drawn to its high-stakes action sequences anchored on the stories of universal characters navigating family life, love and adversity.
As for the events, the all-girl P-Pop group BINI held successful concerts in 2024, including a three-day sold-out concert at Smart Araneta Coliseum. Even the rescheduling of one of those concerts to another day due to a typhoon did not stop the Blooms, as BINI fans call themselves, from supporting their idols. For this year, the group managed by ABS-CBN’s talent management arm Star Magic is embarking on the ‘BINIverse World Tour 2025’ which should take them to 14 foreign locations. The tour actually kicked off at The Philippine Arena in February 2025, and from May to June, the concert travels to Dubai, then London, and then 12 U.S. cities including Houston and Dallas in Texas, and Los Angeles and San Francisco in California.
BINI’s current success did not come overnight. They started under Star Hunt Academy, a talent development program of ABS-CBN that nurtures and hones aspiring Filipino artists in music and acting. After passing auditions, aspirants undergo a rigorous training program, and for Bini, it happened during the early days of the pandemic lockdown. Talent development seems to be both a science and an art, which ABS-CBN wants to master as it aims to introduce more P-Pop groups and other Filipino talents to the world.
Let me now report on the unaudited financial results for the first quarter of 2025. Lopez Holdings’ net income attributable to equity holders of the Parent rose by 57% to P2.744 billion from P1.752 billion year-on-year. This was primarily resulting from the uptick in the earnings contribution of all the major business segments of the Group, and absence of equity share in net losses of ABS-CBN in the current period which amounted to P533 million equity share in net losses in 1Q2024.
FPH reported consolidated net income of P8.495 billion for the three months ended March 31, 2025, 12% higher than the P7.552 billion net income in 1Q2024 while net income attributable to Parent grew by 20% to P4.961 billion from P4.136 billion year-on-year. It reported a 6% increase in revenues to P41.327 billion from P39.125 billion. Sale of electricity accounted for 82% and 85% of revenues in 1Q2025 and 1Q2024, respectively.
On the other hand, ABS-CBN reported an unaudited net loss of P500 million, which is 50% improvement than the net loss of P994 million in 1Q2024. It reported unaudited revenues of P4.231 billion, 4% higher than P4.080 billion in the same quarter last year.
As of March 31, 2025, unaudited consolidated total assets stood at P530.430 billion from P527.649 billion as of December 31, 2024. Significant changes in the balances reflected those of FPH accounts. Current liabilities declined by 10% to P84.795 billion as of March 31, 2025 on account of First Gen’s settlement of payables to gas sellers and contractors accounted under trade payables and other current liabilities.
Total equity attributable to Parent increased by 5% to P96.438 billion as of March 31, 2025 from P91.171 billion as of December 31, 2024. This is on account of the net income attributable to Parent of P2.744 billion for the period and share in the equity movements of investments in FPH. Noncontrolling interest pertains to the share of minority interest on the total equity of LHC and FPH, as consolidated.
As we move forward in 2025 and beyond, Lopez Holdings will continue to monitor and evaluate our risks and those of our investees and execute plans to mitigate their negative impact. However, we cannot deny the fact that there are even more uncertainties emerging in the world today. And because power generation forms the bulk of your company’s portfolio through FPH and its subsidiaries, we are very much aware of the need to address the climate crisis in meaningful ways. But we cannot do it alone. We continue to collaborate with groups and businesses and various stakeholders who share our commitment to clean energy, decarbonization and energy security for our country.
We thank you, fellow shareholders, for your continuous support and confidence in your management team.
Salvador G. Tirona
President, Chief Operating Officer
and Chief Finance Officer