Ayala Corp. has reported that its net income for the first nine months of 2009 amounted to P5.8 billion which is 26 percent lower year-on- year but still 14 percent higher, excluding gains from shares realized in 2008.

It also reported that its consolidated income for the third quarter amounted to P1.7 billion or 13 percent higher than the figures posted in 2008.

Combined equity earnings from core business units, Ayala Land, Inc., Bank of the Philippine Islands, and Globe Telecom grew by 16 percent during the quarter as their net incomes registered strong growth during the period.

This was, however, offset by the mixed performance of units under AC Capital. Equity earnings in the nine-month period ending September remained stable at P6.8 billion.

“Our core business units remained resilient despite the difficult operating environment. With positive trends in the third quarter, we are optimistic about the continued growth trajectory of our businesses, particularly as they tap new market segments and explore new geographies. We also continue to support their growth initiatives as part of a broader plan to constantly enhance and optimize value from our portfolio,” Ayala Corporation president and chief operating officer Fernando Zobel De Ayala said.

The company recently announced it increased its stake in Manila Water to 43.3 percent from 31.7 percent as it signed a sale and purchase agreement with United Utilities, Inc. to acquire the latter's 11.6 percent interest in the water company.

The move is viewed value accretive given the growth potential of Manila Water as it looks to expand beyond its concession area.

Ayala has also continued to actively invest in the business process outsourcing space. Recently, it announced the merger of its contact center investment, eTelecare Global Solutions, with US based Stream Global Services Inc., a leading global call center company.

This combination creates one of the five largest global call center companies, with approximately 30,000 employees in more than 50 sites in 22 countries worldwide, and revenues of approximately US$ 800 million. LiveIt, Ayala's holding company for its business processing outsource investments, has a 25.5 percent ownership in the combined entity.

Subsequently, Ayala's knowledge process outsourcing unit, Integreon, announced the acquisition of Grail Research, the captive Strategic Research and Decision Support unit of the Monitor Group, one of the world's leading management consulting companies, who will enter into a five-year contract to buy research services from Integreon.

Ayala's share of their net loss for the first three quarters of 2009 was P648 million, which includes P439 million in merger and acquisition related transaction costs, amortization of intangibles, and interest expense.

Ayala Corporation ended the period with cash at the holding company level of P26 billion and net debt to equity of 0.09 to 1.*PNA

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