FILINVEST Development Corp. (FDC) reported a 68% growth in attributable profit for the third quarter of 2018, as its banking, property, power generation, sugar, and hotel operations all posted higher revenues for the period.
In a regulatory filing, the Gotianun-led holding firm said net income climbed to P2.49 billion, against P1.48 billion generated in the same period a year ago. This followed an 11% uptick in revenues to P17.79 billion.
On a nine-month basis, FDC’s attributable profit expanded by 67% to P7.92 billion. Revenues meanwhile rose 12% to P54.24 billion.
“Our investments in power, property, and in the bank infrastructure is now being reflected in the healthy increase of FDC’s net income,” FDC President and Chief Executive Officer Josephine Gotianun-Yap.
“While we are always managing risk in our subsidiaries, adding investments in power and infrastructure further allow us a more balanced portfolio with the defensive industries recompensing the business segments that are more exposed to the ups and downs of the economic cycle.”
FDC’s property units drove its growth for the period, as Filinvest Land, Inc. (FLI) grew its net income by 14% to P4.22 billion. Revenues went up by 10% to P15.98 billion.
FLI benefited from the strength of rental revenues, which jumped 28% to P4.04 billion. This offset the flat real estate sales at P10.34 billion. The listed property developer said it remains on track to reach it 1.5-million square meter target in terms of gross leasable area by 2022.
Power unit FDC Utilities, Inc. generated P6.3 billion in revenues in the nine-month period, boosted by the 25% increase in sales from its power plant in Misamis Oriental coupled with retail electricity operations.
Listed banking subsidiary East West Banking Corp. delivered a net income of P3.2 billion, 13% lower year-on-year due to the lower contribution of wholly-owned subsidiary EastWest Rural Bank (EWRB). The rural lender suspended lending activities to teachers as it waited for new guidelines from the Department of Education.
Without EWRB, EastWest’s net income would have gone up 6% on a yearly basis.
FDC is banking on the continued growth of its property and hospitality units moving forward, with several projects in the pipeline. For instance, Filinvest Hospitality Corp. is currently constructing 1,700 rooms across eight new hotels, in addition to its existing networked of 1,591 hotel rooms.
The conglomerate is also redeveloping the former Clark Mimosa Estate into Filinvest Mimosa+Leisure estate, which strengthens its foray into leisure development.
Shares in FDC gained 0.27% or two centavos to close at P7.39 each at the stock exchange on Tuesday. — Arra B. Francia