Filinvest Development Corp. (FDC), the holding company of the Gotianun family, reported a 39% growth in attributable net income in the second quarter despite challenges brought by the coronavirus pandemic.
In a regulatory filing on Friday, FDC said its net income attributable to equity holders rose to P4.21 billion in the three months, even as revenues dropped 24% to P14.72 billion.
Total costs and expenses fell 10% to P14.84 billion as the company recorded lower professional fees during the period.
Year to date, FDC’s attributable net income is up 24% to P7.2 billion, which can be linked to the 6% decline in total costs and expenses to P30.61 billion, offsetting the 16% drop in revenues to P31.89 billion.
By business segment, net income from real estate operations increased 8% to P4.59 billion, outpacing the 22% revenue decline to P12.11 billion. The growth is due to a P2.93-billion gain from Filinvest Alabang, Inc.’s sale of shares in Spectrum Alabang Properties, Inc. to Mitsubishi Corp.
Banking and financial services also helped lift FDC’s finances, posting a 62% higher net income to P4.31 billion. This improvement is due to better margins from core lending and deposit-taking business, as well as higher trading gains.
The power segment added P995.8 million in net income, down by 10% from last year, mostly due to the lower volume of energy that it sold during the lockdown.
The sugar business helped balance this by growing net income by 19% to P310 million on the back of increased sugar sales volume.
However, hospitality operations booked a net loss of P298.1 million, hit by lower occupancy rates when the government imposed travel restrictions amid the coronavirus outbreak.
“We are pleased with our robust results in the first half of 2020 but we remain cognizant of the risks of a prolonged quarantine period and are doing measures to mitigate its negative impact,” FDC President and CEO L. Josephine G. Yap said in a statement.
“The events continue to unfold but we have also learned to adjust in order to lessen the impact of the disruptions brought about by the pandemic,” she added. — Denise A. Valdez
