Filinvest Development Corporation (FDC), the Gotianun family’s holding firm, reported a three percent improvement in attributable net income to P8.9 billion in the first nine months of 2020 from the P8.6 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said the net income growth it continued to demonstrate amid the COVID-19 pandemic disruptions was brought about largely by the higher revenue contribution from its banking subsidiary combined with lower direct costs.
Cost control measures, particularly the decline in direct costs by 36 percent to P15.6 billion, offset the 9 percent drop total revenues and other income to P57.1 billion and the 18 percent increase in operating expenses to P28.8 billion in the first nine months of 2020.
“We are pleased with the strength and resilience of the Filinvest Group. Our banking and sugar businesses covered the gap caused by the hospitality and real estate businesses which are the most affected by the pandemic-related government restrictions,” said FDC President and CEO L. Josephine G. Yap.
She added that, “We are, however, encouraged by improvements in the quarter-on-quarter performance of residential revenues which saw a jump of 47 percent in the third quarter compared to the second quarter of 2020.”
“Together with the V-shape recovery in option sales, this signifies a turnaround as government restrictions have started to ease. Our power subsidiary has also been stable and gradually picking up to pre-pandemic levels,” Yap said.
She noted that, “Overall, we are confident that our balanced portfolio can withstand the current crisis and we are prepared to take advantage of opportunities when the current situation turns around.”
EastWest Bank (EW) delivered a net income contribution to the group of P5.8 billion in the first nine months of 2020, 32 percent higher than the same period last year.
FDC’s real estate business composed of listed subsidiary, Filinvest Land, Inc. (FLI), and Filinvest Alabang, Inc. (FAI) contributed P5.1 billion in net income to the group, lower by 15 percent from the first nine months of 2019.
Power subsidiary FDC Utilities, Inc. (FDCUI) registered a net income of P1.8 billion, growing by 3 percent from the same period last year due to the reduction in operating expenses by 29 percent to P1.52 billion and the 3 percent increase in average price.
Hotel operations under Filinvest Hospitality Corporation (FHC) posted a revenue decline of 59 percent to P981 million in the first nine months of 2020 as occupancy rates dropped across the properties, leading to a net loss of P487 million from a net income of P266 million in the same period last year.(James A. Loyola)