Ayala Land Downplays POGO Ban Impact; Profits Up 15% in H1

Ayala Land Inc., a leading property developer, stated that it would experience minimal impact from the government’s decision to ban Philippine Offshore Gaming Operators (POGO).

At a press briefing in Makati City, Ayala Land President and CEO Anna Ma. Margarita Bautista-Dy explained that the company’s exposure to POGO operations is minimal. “We really have very few sales to Chinese buyers in general, so POGO,” Dy said, noting that less than 5% of Ayala Land’s units are occupied by POGO.

Minimal Impact on Ayala Land

Dy emphasized that the company’s exposure to POGO is “very small,” mitigating potential adverse effects from the government’s ban.

In his third State of the Nation Address (SONA), President Ferdinand Marcos Jr. directed the Philippine Amusement and Gaming Corp. to halt all POGO operations by year-end. Economic managers downplayed the economic loss from this ban, noting the industry’s contribution to GDP is less than 0.5%.

Strong Financial Performance

Despite the POGO ban, Ayala Land reported strong financial performance in the first half of 2024, with net income rising 15% year-on-year to P13.1 billion. Revenues surged by 28% to P84.3 billion, driven by robust property development sales and increased residential bookings.

The company’s capital expenditures totaled P36.5 billion, allocated primarily to residential projects (51%), estate development (27%), commercial leasing assets (11%), and land acquisition commitments (11%).

Revenue Growth

• Property Development Revenues: Increased by 34% to P51.9 billion.
• Residential Revenues: Jumped 40% to P43.7 billion.
• Commercial and Industrial Lot Revenues: Grew 19% to P6.3 billion.
• Office-for-Sale Revenues: Declined by 15% to P1.8 billion due to lower project completion rates despite new bookings.

Residential reservation sales also climbed 17% year-on-year to P68.4 billion, with second-quarter sales up 15% year-on-year to P35 billion, driven by the premium and vertical segments.

“Ayala Land is hitting its growth targets across all business lines and market segments. Residential sales outperformed expectations. We will continue to pursue our growth trajectory with a keen eye on capital efficiency,” Dy said.