Lopez Holdings


Benpres posts revenues of P4 billion in 1h/03
Benpres Holdings Corporation posted revenues of 4.153 billion in the first six months of 2003 compared to 838 million in the same period last year. Net sales and services grew 13x to 2.780 billion as this is the first time in which Maynilad Water Services, Inc. (Maynilad Water)is reporting as operating company. The Maynilad Water account was pre-operating in prior periods. The similar increases in general and administrative expenses (7x to 1.325 billion) and costs of sales and services (17x to 2.076 billion) are also the result of this operation. Net income for the period stood at 43 million versus a net loss of 80 million in the first six months of 2002.

Benpress core investments ABS-CBN Broadcasting Corporation (ABS-CBN) and First Philippine Holdings Corporation (First Holdings) remained strong during the period. Consolidated gross revenues of ABS-CBN grew 21% to 5.286 billion, while EBITDA increased 49% year-on-year (YoY) to 2.196 billion. Net income rebounded YoY to 507 million from a restated loss of 100 million the previous year. First Holdings booked profits of 1.9 billion for the first semester, 91% higher than the previous year. Revenues increased 75% to 18.2 billion YoY, on the back of creditable contributions from its power generating assets. Also, in June, FPHC subsidiary First Generation Holdings Corporation sold its ownership in Panay Power Corporation, resulting in a 406.4 million-gain on sale of investment.

On August 12, 2003, Bayan Telecommunications, Inc. (BayanTel) received a copy of an order from the Regional Trial Court of Pasig City, Branch 158 regarding a petition for the corporate rehabilitation. The Court Order, among other matters, stayed enforcement of all claims and actions against BayanTel. BayanTels rehab plan process has no impact on Benpress own debt restructuring. Benpres has assumed no cash dividend coming from BayanTel in its Balance Sheet Management Plan.

On August 9, 2003, arbitration proceedings of Maynilad Water began to resolve issues surrounding Metro Manilas West Zone Concession. Under the Concession Agreement, Maynilad Water is entitled to an Early Termination Amount for returning the Concession on February 7, 2003.

Financial Condition

There were adjustments made to retained earnings to comply with changes in the accounting of intangible assets (SFAS 38/IAS 38). The adjustments amounted to 4.130 billion. Of this amount, 2.636 billion were attributable to preoperating expenses in prior periods for Maynilad. In addition, Benpres booked its share in Meralcos contingent losses resulting from a Supreme Court refund order at 2.445 billion.

As a result of these adjustments, stockholders equity at the end of the period stood at 4.003 billion, 73% below the 14.967 billion recorded at the end of June 2002.

Consolidated FS with MD&A  

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Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

  • Trunkline: (632) 8878 0000
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