Filinvest Q1 earnings up 18% at P2.8B

May 17, 2018
by Filinvest Development Corporation

GOTIANUN-LED conglomerate Filinvest Development Corp. (FDC) saw net income for the first three months of the year grow 18 percent from a year earlier to P2.8 billion on the back of higher income contributions from its property business.

Nearly half, or 46 percent, of its first-quarter revenues came from its property business, which is composed of the real estate and hotel groups, FDC said in a filing on Wednesday.

It said the increased share of property revenues was mainly due to a 21 percent growth in hotel segment revenues, while the balance was contributed by its banking arm (39 percent), power (11 percent) and sugar (4 percent) businesses.

Property arm Filinvest Land, Inc. (FLI) saw net income advance 7 percent to P1.5 billion on the back of a 7 percent increase in revenues to P6.3 billion, supported by the further expansion of its rental property portfolio and continued strong demand for retail and office spaces.

Banking unit EastWest Bank reported net income of P900 million in the period, down 25 percent from a year earlier, primarily due to lower contributions from subsidiary EastWest Rural Bank and securities trading losses.

Power business FDC Utilities also saw growth in its bottom line figures as its 405-megawatt (MW) clean coal power plant in Misamis Oriental recorded higher demand from customers in the first quarter. The company recently partnered with PIC Marubeni, a global service provider focused on the power industry, to operate and maintain the facility.

“Our interests in power and infrastructure can provide balance to our more cyclical property segments and banking businesses with steady and stable revenues from rental, power, sugar and infrastructure sectors,” FDC President and Chief Executive Officer Josephine Gotianun-Yap said.

“At the same time, investment in airport infrastructure will complement our hospitality and business process outsourcing (BPO) projects in the country,” she added.

FDC is part of the so-called “super consortium,” a group comprising seven of the country’s biggest conglomerates, which is bidding for the rehabilitation of Ninoy Aquino International Airport.

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