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News Top Stories Ayala Land net income up 37% in H1
News Top Stories Ayala Land net income up 37% in H1
| Ayala Land net income up 37% in H1 |
| Saturday, 09 August 2008 05:28 | ||||||
 Ayala Land Inc. reported a 37-percent jump in net profit for the first half of 2008 to P2.91 billion from the P2.13 billion recorded last year.In a disclosure to the Philippine Stock Exchange, Ayala Land attributed the growth to higher operating revenues, improved equity earnings from affiliates, higher interest and other income, and effective cost control measures. The company recorded consolidated revenues of P15.38 billion during the period, 32 percent more than the P11.63 billion recorded in the same period last year. Operating revenues increased 26 percent to P13.71 billion buoyed largely by growth in the residential and construction businesses. The company said Higher equity earnings from Ayala Land's corporate investment vehicles in Bonifacio Global City, Cebu Holding Inc. and Alabang Commercial Corp., contributed to net income growth. In addition, Ayala Land earned higher interest and other income with increased cash balances and the sale of shares in three subsidiaries, namely Piedmont Property Ventures Inc., Stonehaven Land Inc. and Streamwood Property Inc. in March that generated P762 million in pre-tax capital gains. Consolidated net operating income reached P4.29 billion in the first six months of 2008, up 16 percent year-on-year. However, Ayala Land said its overall net operating income margin declined by three percentage points to 31 percent as margins of its shopping center and property management businesses dropped due to the closure of high-margin Glorietta 2, the start-up operations at Greenbelt 5 and lower carpark volume with the ongoing Ayala Center redevelopment. Construction margins also dropped significantly due to highly competitive bids on large external contracts as well as the rising costs of construction materials. Meanwhile, overhead costs were kept at bay as general and administrative expenses increased by only 11 percent to P1.31 billion. Residential development accounted for the bulk of revenues at 45 percent of total or P7.0 billion. The leasing businesses namely shopping centers and corporate business contributed 14 percent or P2.1 billion and 3 percent or P428 million to revenues, respectively. Ayala Land has earmarked P24.3 billion this year, of which 42 percent will be spent on ongoing and new residential projects, 30 percent for business process outsourcing offices, and 14 percent for the redevelopment of the Ayala Center in the Makati business district and other malls.
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