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FDC posts ‘solid recovery’ as businesses’ earnings surge

FILINVEST Development Corp. (FDC) on Tuesday reported a surge in attributable net income to P2.2 billion in the first quarter from P874.2 million due to the robust performances from all its businesses.

“We are pleased with the solid recovery of FDC having seen an acceleration in earnings across all the business units,” said FDC President and Chief Executive Officer Lourdes Josephine Gotianun-Yap.

“We expect to sustain this momentum moving forward given the continuous improvement in business activity in the country despite some macroeconomic headwinds. The consistently high domestic demand driven by strong household consumption should bode well for our businesses that are strongly focused on the middle market,” Ms. Gotianun-Yap added.

FDC’s consolidated revenues for the quarter grew by 34%to P20.7 billion, while cost and expenses rose by 27% to P17.3 billion.

Banking and financial services unit East West Banking Corp. tripled its net income for the period to P1.5 billion. Its net interest income rose by 17% to P6.1 billion, fuelled by a 19% expansion in lending activities led by credit cards along with auto and key salary loan segments. Its noninterest income more than doubled to P1.7 billion during the January-to-March period.

The company’s real estate segments Filinvest Land, Inc. and Filinvest Alabang, Inc. reported a total net income of P1 billion, up 10% from P920.6 million in the same period last year. This was propelled by a 20% growth in mall and rental revenues to P1.8 billion.

Residential revenues reached P2.9 billion, up 4% due to construction progress, while office leasing inched up by 2% to P1.1 billion during the quarter.

FDC Utilities, Inc. booked a 25% increase in net income for the period to P614.3 million as its revenues grew by 25% to P3.3 billion. This was due to higher power rates at about P13.40 per kilowatt-hour (kWh) from P8.98 per kWh in the same period last year as the cost of pass-through fuel increased.

“[It] operates an aggregate 405-megawatt clean coal plant located in Misamis Oriental in Mindanao that services a diverse customer base composed of 14 mostly triple A distribution cooperatives and two industrial customers from the region,” the company said.

Filinvest Hospitality Corp. saw its net income more than double in the three-month period to P685.9 million because of an increase in occupancy and room rates for its operations.

Filinvest Hospitality’s portfolio has approximately 1,800 rooms across seven hotels in seven cities and five regions under the Crimson and Quest brands. It had recently acquired Timberland Highlands Resort in Rizal.

Meanwhile, the company said that it is allocating P35 billion for capital expenditures this year, half of which will be earmarked for its real estate and hospitality units.

The balance will be set aside for “investments in new ventures such as renewables, water and other urban solutions.”

FDC shares on Tuesday slipped by 0.69% or P0.04 to end at P5.74 apiece. — Adrian H. Halili

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