Gotianun holding firm nets P1.38 billion in first half

MANILA, Philippines - Filinvest Development Corp. (FDC), the listed investment holding firm of the Gotianun family, posted a net income of P1.38 billion in the first half this year, more than double the P585 million recorded in the same period last year.

In a financial report submitted to the Philippine Stock Exchange, FDC said net revenues grew 42.8 percent to P6.07 billion from P4.25 billion a year ago on strong growth in its financial services and real estate businesses.

Revenues from real estate operations amounted to P2.4 billion, up 17.9 percent from P2.07 billion. Sale of lots, condominium and residential units, and club shares increased 50 percent to P2.62 billion, the bulk of which came from property unit Filinvest Land Inc.’s medium-rise buildings.

Mall and rental revenues rose nine percent to P750 million due to the opening of Fastbytes – Phase 2, the increase in rental income of Westgate Complex in Filinvest Corporate City and the consolidation of 100 percent of Cyberzone Properties Inc. as a result of FLI’s acquisition of the 40-percent interest of Africa-Israel Properties (Phils), Inc.

On the other hand, revenues from the financial and banking services rose 67.3 percent to P3.28 billion from P1.96 billion. Interest income rose by 55 percent to P2.9 billion while other income went up 39.7 percent to P1.08 billion. These included the results of East West Bank’s newly-acquired subsidiaries – AIG Philam Savings Bank, Philam Auto Finance and Leasing Inc., and PFL Holdings Inc.

Sugar operations contributed P337.43 million to FDC’s total revenues. The amount is 54.3 percent higher than the previous level of P218.66 million, mainly due to sales of inventories at higher selling prices.

Meanwhile, hotel operations generated P3.15 million in net revenues after its soft opening in May.

In the second quarter alone, FDC’s net earnings surged 130.9 percent to P935.9 million from P405.33 million in the same period a year earlier. Net revenues likewise spiked 45.6 percent to P3.13 billion.

Operating expenses totaled P1.9 billion in the first semester of the year, up 36 percent from P1.4 billion, due to higher selling and marketing expenses which include the establishment of additional sales offices across the country.

As of end-June this year, FDC had total assets of P174 billion and total equity of P64 billion. Total liabilities stood at P110 billion.

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