Lopez Holdings

 

Benpres trims 1st sem loss by 89%
For the six months ended June 30, 2002, Benpres reported a 9% increase in its revenues from the same period last year to P838 Million. Although Benpres registered a decline in accretion of earnings on Notes of P327 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"; and (b) Benpres already provided for the write-off of its investment in BayanTel last year, and therefore BayanTel's net loss for the semester was no longer reflected under the item, "equity in net losses of investees". Benpres loss provision with Bayantel will be reviewed again when it recognizes the remaining P5.0 Billion guaranteed liability from the convertible preferred shares issued by Bayantel by end of 2002.

Investees
For the first six months of this year, ABS-CBN continued to dominate the broadcasting industry, attaining an average audience share of 46% and ratings of 19% which is higher than all its free-to-air competitors combined. However, in spite of gross airtime revenues for the second quarter of 2002 growing a robust 47% from the first quarter of this year to Php2.4 billion, gross revenues were still 15% lower compared to the same period last year due to lower advertising spending as well as the absence of government and political airtime revenues. Lower advertising revenues, higher depreciation and interest expenses resulted in a 77% decline in net income from P901 million in the same period last year to P208 million.

FPHC posted revenues of P10.4 billion, or 30% higher than the same period of the previous year. This was due primarily to the increase in revenues generated by the power generating subsidiaries, under the holding company First Generation Holdings Corporation. Despite a P3.1 billion or 73% increase in costs and expenses, income before income tax and minority interest is still higher compared to last year by P76 million or 4% due to the decrease in interest and other expenses. Compounded by the decrease in provision for income tax and minority interest, net income for the first semester period is higher by 15%, from P949 million in the same period last year to P1.09 billion.

Sky Vision Corporation, Central CATV Inc., and The Philippine Home Cable Holdings Inc. continue to negotiate with their respective creditors concerning the restructuring of their debts. PCI Capital Corporation and UCPB's Investment Banking Division are acting as their financial advisors.

Credit Lyonnaise S.A. (CLSA), which BayanTel appointed as its financial advisor effective May 1, is formulating a revised debt restructuring proposal. CLSA, which has been holding discussions with BayanTel's creditors, expects to present its formal proposal within August.

The special transitory mechanism that was supposed to take effect in July 2002 was deferred by government last June 2002. However, Maynilad Water continues to work closely with government on the rate rebasing exercise. Also, Benpres engaged the services of Credit Lyonnaise S.A. to look for additional investors in Maynilad Water.

Manila North Tollways Corporation is currently working on the conditions precedent to loan draw-down.

Rockwell Land is in the pre-selling stage of the Manansala residential condominium. Approximately 37% of the building has been pre-sold.

Liability and Capital Resources of Benpres (Parent Company Only) for the period ended June 30, 2002 compared with June 30, 2001

As of the period ended June 30, 2002, Benpres' total assets amounted to PhP 31,860 million as compared to same period last year of PhP 37,254 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. This resulted in the decline in stockholders' equity to PhP 14,967 million as of 2Q-2002 compared to same period last year of PhP24,636 million is primarily due to this transaction.

Benpres' net loss for the six months ended June 30, 2002 amounted to PhP80 Million.

Benpres together with its financial advisor, Credit Suisse First Boston (CSFB) presented the Balance Sheet Management plan of the company to its creditors in June 2002. Benpres continues to be in discussions with its creditors.

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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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