Lopez Holdings Corporation (LPZ) benefited from a successful tender offer for unrestructured debt conducted in 2011 to cushion the impact of a difficult year for its investees.
Total debt bought back during the year resulted in a gain of P2.119 billion for 2011, accounted for as “excess of the carrying amount of obligation over the buyback price.”
The company posted P3.955B in net income attributable to equity holders of the parent in 2011. The amount is 70% lower than the P13.175B reported in 2010. The 2010 results include the company’s share in the gain on sale of Meralco by associate First Philippine Holdings Corporation (FPH).
Net revenues of P25.047B, lower by 10% from the previous year’s P27.860B, reflects the challenging year experienced by ABSCBN Corporation in the absence of election-related advertising that lifted 2010 revenues to record levels. Equity in net earnings decreased by 93% to P732 million from P11.118B as associate FPH reported a net income attributable to equity holders of the parent of P2.117B, versus 24.850B the previous year when it sold a 6.6% interest in Meralco.
“ABS-CBN operates in a fiercely competitive market but continues to make significant investments toward future growth. At the same time, FPH is expanding its renewable energy portfolio through First Gen. We believe their clear strategic directions will allow Lopez Holdings to provide sustainable returns to shareholders over the long term,” said Lopez Holdings president Salvador G. Tirona.
Lopez Holdings declared its first cash dividend of P0.10 per share in September 2011.
As of December 31, 2011, Lopez Holdings held a 57.3% economic interest in ABSCBN and 44.3% in FPH.
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