Conglomerate Ayala Corp. reported a 4 percent year-on-year decline in its first-quarter net income to P12.6 billion, as strong contributions from its banking and real estate businesses were offset by weaker earnings from its telecommunications and energy units.
Core net income, which excludes one-time items, also fell 4 percent to P11.3 billion in the first three months of 2025, Ayala said Tuesday in a disclosure to the stock exchange.
“We are seeing strong starts from our banking, real estate and fintech businesses. Our telco and energy businesses have some catching up to do,” Ayala president and chief executive Cezar Consing said.
“Our smaller, newer companies are turning the corner. We are constructive on the year,” Consing said.
The lower net income was largely due to reduced profitability from Globe Telecom and AC Energy & Infrastructure Corp. (ACEIC).
Globe’s core net income plunged 22 percent to P4.5 billion due to softer gross service revenues, higher financing costs and increased depreciation.
ACEN Corp.’s net income fell 28 percent to P2 billion, weighed down by lower generation in the Philippines, weak local spot market prices and depreciation from newly operationalized plants.
ACEIC, ACEN’s parent, saw core net income drop 46 percent to P1.7 billion.
On the other hand, the property unit Ayala Land Inc. (ALI) and the banking arm Bank of the Philippine Islands (BPI) posted double-digit earnings growth.
BPI’s net income rose 9 percent to P16.6 billion, supported by strong loan growth and a higher net interest margin, while ALI’s earnings increased 10 percent to P6.9 billion on higher revenues from its property development, leasing and hospitality segments.
Meanwhile, Ayala’s portfolio investments also showed signs of recovery.
AC Health narrowed its net loss to P59 million from P191 million, while AC Logistics cut its core net loss to P303 million from P400 million, aided by cost reductions and operational streamlining.
AC Industrials saw its core net loss narrow to P115 million from P331 million, driven by a turnaround in IMI, which posted a $3.3 million net income versus a $3.7 million loss a year ago.
ACMobility posted a net loss of P168 million from P35 million due to marketing and manpower expenses, mainly related to the ramp-up of BYD and its charging infrastructure network.
Total unit sales more than doubled to 9,206.