Ever-Gotesco profit up 47.4% to P9.78M in Q1

Ever-Gotesco Resources and Holdings Inc. reported a 47.7- percent hike in its first quarter net income this year to P9.78 million from only P6.62 million in the same period a year ago, mainly due to lower costs.

In a financial report filed with the Securities and Exchange Commission, Ever-Gotesco said the increase in net income was due to cost savings measures implemented by management such as the decrease in agency manpower.

Total revenues, on the other hand, decreased by P811,000 to P82.45 million as a result of the deferment in rental rates increase and in some cases, reduction in rental rates of major and anchor tenants.

These actions were resorted to by the company in order to retain its tenant base in view of the continuing effect of the economic crisis which affected the tenant’s ability to sustain pre-crises rental rates.

Lower occupancy rate on rentable spaces and the closure of seven cinemas also pulled down revenues, the company said.

Net operating costs and expenses, however, decreased by 7.11 percent to P53.83 percent. Interest expense, on the other hand, slightly increased to P18.84 million compared with P18.68 million last year.

Meanwhile, net property and equipment amounted to P3.25 billion. These include the land and mall in Pasig City which secured certain loans from a syndicate of lender banks led by Philippine National Bank.

As of end-March this year, the company had liabilities of P1.73 billion as against P1.7 billion a year ago. Principal loan obligation amounted to P665 million.

The Ever-Gotesco malls were established by the Go family to pursue their mall operations through two subsidiaries, Ever Commonwealth Center and Ever Gotesco Ortigas Complex. The company is also engaged in real estate development.