FDC doubles profit in Q2

FILINVEST Development Corp. doubled its net income attributable to equity holders of the parent company to P3.4 billion in the second quarter, from P1.74 billion during the same period a year ago, on strong real estate sales.
In a regulatory filing, the Gotianun-led holding company said its attributable net income rose 66% to P5.42 billion during the first six months of 2018, from P3.26 billion a year ago.
Second-quarter revenues stood at P19.2 billion, up 21%, bringing the six-month figure to P36.45 billion, up 12%.
The real estate business under Filinvest Land, Inc. accounted for the bulk of revenues. For the April to June period, real estate operations generated P7.65 billion in revenues, 56% higher than the same period a year ago.
For the first half, real estate revenues climbed 31% to P14.84 billion, “backed by a 30.9% growth in real estate sales and 29.9% growth in rental and related services.”
This brought net income from real estate operations 60% higher to P4.69 billion for the first semester, from P2.9 billion a year ago.
FDC’s banking and financial services business recorded a first-half net income of P2.03 billion, 14% lower than last year’s figure due to lower-than-expected results from East West’s rural bank unit.
Power generation operations, under FDC Utilities, Inc., saw a 234% surge in six-month net income to P765.7 million, as revenues from coal power plant and retail electricity operations grew by 29%.
Net income from FDC’s sugar business jumped 62% to P327.4 million for the first six months, as sugar sales improved.
Hotel operations posted a 26% rise in profit to P93.3 million as of end-June 30. Filinvest Hospitality Corp. has 1,591 rooms in four properties under the Crimson and Quest brands.
“We believe that our investments in power and infrastructure can yield returns that balance out our more cyclical business segments. Steady and stable revenues from the rental, power, sugar and infrastructure sectors will help to smooth out the waxing and waning of the business cycle. In addition, investing in airport infrastructure will complement our projects in hospitality and BPO rental properties,” FDC President and CEO Josephine Gotianun Yap was quoted as saying in a separate statement.