Lopez Holdings

 

Lopez Holdings 9M 2010 attributable income 19% better
Lopez Holdings Corporation (PSE: LPZ), formerly Benpres Holdings Corporation, reported P13.035 billion in net income attributable to equity holders of the Parent for the first nine months of 2010.

The amount is 19% higher than the P10.916 billion net income attributable to equity holders of the Parent in the comparable period of 2009. Equity in net earnings of associates increased by 216% to P10.969 billion from P3.471 billion year-on-year (YoY) as associate First Philippine Holdings Corporation (FPHC) completed the sale of a 6.6% stake in Meralco in March 2010.

Lopez Holdings further recorded a P576 million gain on debt restructuring, representing a reversal of accrued interest expenses following the signing of a restructuring agreement with Union Bank of the Philippines in September 2010. The restructuring resulted in the re-classification of P1 billion in parent debt to long-term bonds. As of September 30, 2010, Lopez Holdings’ outstanding debt was P2.832 billion, compared to P3.013 billion as of December 31, 2009.

Meanwhile, net finance costs decreased by 11% to P847 million from P953 million due to lower debt levels, following a significant buyback in August 2009.

Unaudited consolidated revenues of P24.742 billion in 9M2010 was an increase of 35% over the P18.343 billion posted in 9M2009, and reflects the strong performance of associate ABS-CBN Corporation. ABS-CBN reported a 35% YoY increase in unaudited consolidated revenues and a 115% rise in net income attributable to equity holders of the Parent, as advertising minutes jumped 46% for flagship TV station, Channel 2.

FPHC posted a net income attributable to Parent of P25.494 billion, on the back of the P23.618 billion combined gain on the sale of Meralco shares in March 2010 and the mark-to-market restatement of its remaining 6.6% stake in Meralco. FPHC’s Meralco shares are now carried in its financial statements as “Available–for-Sale (AFS) Financial Assets” which will then be adjusted on a regular basis for changes in the market price of Meralco.

“Without the gain on sale, FPHC’s recurring net income attributable to Parent would have been P1.876 billion which is significantly higher than last year’s restated net profit of P585 million due to the strong earnings contribution of its subsidiaries, especially First Gen Corporation. The operating performance of FPHC investees and of ABS-CBN assures Lopez Holdings of receiving sustained dividend payouts well into next year,” said Lopez Holdings president Salvador G. Tirona.

As of December 31, 2009, Lopez Holdings held a 57% economic interest in ABS-CBN and 42% in FPHC.

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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
  • Fax: (632) 8878 0000 ext 2009
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