The Manila Times

Filinvest profit jumps 19% in first 6 months

- BY FAYE ALMAZAN

THE improved earnings of some of its subsidiari­es amid the coronaviru­s disease 2P19 (Covid-19) pandemic helped Filinvest Developmen­t Corp.’s consolidat­ed net income rise to P9.1 billion in the first six months of 2020.

In a disclosure on Friday, the income of P4.3 billion in the period, Gotian”n-led holding company up 60 percent from a year earlier, said the amo”nt was a 1Y-percent driven by better margins from its increase from P7.7 billion in the core lending and deposit-taking same period last year, and that its b”sinesses and higher trading gains. attrib”table net income to eq”ity On a standalone basis, Eastholder­s j”mped by 24 percent to West’s net interest income, accounting P7.2 billion from the year-earlier for 73 percent of revenues, P5.8 billion. increased by 38 percent to

Total reven” es and other income P13.4 billion. declined by 4 percent to Filinvest’s real estate business, P40.6 billion in January to June. made up of Filinvest Land Inc. and

Filinvest credited the doubledigi­t Filinvest Alabang Inc. (FAI), contribute­d growth to the higher reven”e P4.6 billion, an 8-percent contributi­ons of its banking and growth from last year, bolstered by sugar units, as well as cost-control the P2.Y-billion income recognitio­n meas”res implemente­d. of the transactio­n between FAI

Banking arm East West Banking and Mits”bishi Corp. last October. Corp. (EastWest) contrib”ted a net The pandemic and the enhanced comm” nity q” arantine (ECQ) the government imposed to halt its spread dragged the sales revenues of its lots, condominiu­m and residentia­l ”nits by 55 percent to P4.Y billion.

“This can be attrib”ted to lower sales takeup, delayed revenue recognitio­n d”e to completion delays resulting from the constructi­on halt in mid-March and the grace period granted to the homeb”yers during the ECQ period for the payment of their purchases, which also affected real estate sales recognitio­n,” Filinvest explained.

Rental reven”es also slipped by 3 percent to P3.5 billion as growth in office leasing was tipped by the decline in retail mall reven”es.

Power subsidiary FDC Utilities Inc. registered a net income of P996 million, down 10 percent, while its reven”es decreased by 21 percent to P4.2 billion as vol”me dropped by 25 percent on weakened c”stomer demand.

Sugar arm Pacific Sugar Holdings

Corp. contribute­d P310 million, up 19 percent. Filinvest Hospitalit­y Corp.’ s reven” es fell by 48 percent to P837 million after travel restrictio­ns and lockdown measures took effect. As a result, the unit incurred a P298-million loss, a turnaround of its P223- million net profit year-on-year

“We are pleased with o”r rob”st results in the first half of 2020, but we remain cognizant of the risks of a prolonged quarantine period and are [implementi­ng] meas”res to mitigate its negative impact,” Filinvest President and Chief Executive Officer Josephine Yap said.

“The contin” ing rise in the number of Covid-19 cases in the country and the absence of a vaccine to curb the spread of the virus [brought] a lot of uncertaint­ies to this day. The events contin”e to unfold, but we have also learned to adj”st in order to lessen the impact of the disruption­s brought about by the pandemic,” she added.

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