Lopez Holdings

 

Benpres breaks even in 1Q2002
For the period ended March 31, 2002, Benpres reported a 69% increase (PhP197 Million) in its revenues from the same period last year to P481 Million. Although Benpres registered a decline in accretion of earnings on Notes of P214 Million from the same period last year, the Company still reported an increase in revenues due to the following: (a) First Philippine Holdings Corporation (FPHC) accounted for bulk of the item, "equity in net earnings of investees"; (b) Benpres already provided for the write-off of its investment in BayanTel last year, and therefore BayanTel's net loss for the quarter will no longer be reflected under the item, "equity in net losses of investees". Benpres will not reflect any losses arising from Bayantel until it recognizes the remaining P5.0 Billion guaranteed liability from the convertible preferred shares issued by Bayantel; (c) Benpres also booked some recovery from a rise in the market value of the Company's investments in Digitel.

Investees ABS-CBN Broadcasting Corporation registered net income of Php3.82 million in 1Q 2002, resulting in a 99% year-on-year (YoY) decline. The drop in net income was mainly due to the decline in airtime revenues as well as the increase in depreciation costs, interest charges and, the occurrence of other one-time and new cost items during the period. ABS-CBN as of end-1Q 2002 had total consolidated assets of P23.28 billion, with an interest-bearing debt-to-equity ratio of 47%.

First Philippine Holdings Corp. (FPHC) still continues to perform well given the revenue contributions of First Generation Holdings Corporation (First Gen). Revenues amounted to PhP5,000 million for period ended March 31, 2002 as compared to the same period last year of P4,200 million. The 20% revenue increase is primarily due to the revenue contribution of FPHC's power generating assets. Net income, however, declined by 24% from the same period last year to PhP413.9 million which was primarily due to the decrease in net income of Meralco.

On April 16, Beyond Cable Holdings, the entity that consolidates the operations of SKYCable and HomeCable, signed a settlement agreement covering past due accounts with Star TV and a two-year contract to carry Star Movies, Star World, National Geographic, ESPN and Star Sports. In light of the return of the Star TV channels, the companies are planning sales and marketing campaigns to recover disconnected subscribers.

On April 30, BayanTel terminated Bank of America's (BofA) financial advisory engagement after BofA expressed an intention to discontinue its project finance practice in Asia. BayanTel hired Credit Lyonnaise S.A. as replacement effective May 1, 2002.

The management of Maynilad Water is currently working with the government on the parameters for rate rebasing.

Manila North Tollways Corporation is currently working on the conditions precedent to loan draw-down. First draw-down is expected within the second quarter of 2002.

Rockwell Land is in the pre-selling stage of the Manansala residential condominium. Approximately 20% of the building has been pre-sold.

Liability and Capital Resources of Benpres (Parent Company Only) for the period ended March 31, 2002 compared with March 31, 2001

As of the period ended March 31, 2002, Benpres' total assets amounted to PhP 31,905 million as compared to same period last year of PhP 38,885 million. The decline in asset base is mainly due to the decline in the cash and cash equivalent account. In 2001, Benpres set up a provision for the decline in the value of its investments in and advances to Bayantel, including recognition of its liability that may arise from its guarantee and commitments amounting to PhP9,900 million in 2001 and PhP1,350 million in 2000. The decline in stockholders' equity to PhP 15,071 million as of 1Q-2002 compared to same period last year of PhP26,678 million is primarily due to this transaction.

In addition, Benpres sold 4.6 million First Philippine Holdings Corporation (FPHC) shares equivalent to 1.08% of Benpres' ownership in FPHC. Proceeds from sale was used for debt service.

Benpres' net income for the period ended March 31, 2002 amounted to PhP2 Million.

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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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