Lopez Holdings earnings drop 19% in Jan.-March
EARNINGS of Lopez Holdings Corp. fell 19% in the first three months of 2017, due to foreign exchange losses of First Philippine Holdings Corp. (FPH) and lower ad revenues of ABS-CBN Corp. during the period.
In a statement, Lopez Holdings said its net income attributable to equity holders of the parent stood at P1.042 billion in the first quarter, from P1.291 billion during the same period in 2016.
Consolidated revenues went up by an annual 12% to P25.42 billion.
FPH saw a 6% decline in net income attributable to equity holders of the parent to P1.9 billion in the January to March period, despite a 12% increase in consolidated revenues to P25.4 billion.
“Unfavorable forex movement during the period partially offset the effect of growth in recurring earnings of FPH Group. Excluding forex and nonrecurring items, attributable earnings of FPH increased by 12% (to P2 billion),” Lopez Holdings, which owns 46% of FPH, said.
Foreign exchange losses reached P169 million in the first quarter, a reversal from the P287 gain a year ago “because of the Philippine peso depreciation during the December 2016 to March 2017 period, compared to an appreciation during the December 2015 to March 2016 period.”
Meanwhile, ABS-CBN’s earnings stood at P314.398 billion in the first quarter, declining 59% from the P760.632 million gained during the same period last year which got a boost from election-related revenues.
In a regulatory filing, the Lopez-led media and entertainment company said it posted 19.2% drop in its earnings before interest, taxes, depreciation and amortization (EBITDA) to P1.749 billion. Lopez Holdings has a 56% economic interest in ABS-CBN.
For the three-month period, ABS-CBN said it generated consolidated revenues of P9.576 billion from advertising and consumer sales, 3.2% lower from the previous year.
Advertising revenues fell 13% to P4.84 billion, although ABS-CBN said that excluding election related placements, it would have grown 1% year on year.
Consumer sales, which includes ABS-CBN events, theme park KidZania, home shopping service O-Shopping, and ABS-CBN store, went up 10% to P4.73 billion in the first quarter, mainly from the sale of ABS-CBN TVPlus and higher revenue from Sky Cable’s broadband business.
ABS-CBN reported costs and expenses for the three-month period slipped 3.4% to P9.173 billion from the P8.868 billion recorded during the same period last year as the firm was able to control employee-related expenses, even as its production cost increased.
On Tuesday, shares in Lopez Holdings fell 2.7% to P7.05 apiece, while ABS-CBN closed 0.23% lower to P43.80 each and FPH dropped 1.53% to P70.70 apiece. -- I.C.C. Delavin