Posted on April 30, 2012 10:50:28 PM [
BusinessWorld Online ]
FILINVEST DEVELOPMENT Corp., the
holding unit of the Gotianun clan, saw its profit growth slow considerably last
year, coming from a surge in 2010 when it first began recognizing earnings from
its hotel arm.
The Gotianun-led firm grew its 2011
net income by just 3.65% to P3.69 billion from P3.56 billion in 2010, a filing
with the Philippine Stock Exchange (PSE) showed yesterday.
This is significantly slower compared
to the 106.98% profit increase the company recorded in 2010.
In contrast, total revenues last year
grew by 10.08% to P24.13 billion, supported by sales growth in the
conglomerate’s real estate, banking, and hotel units.
Filinvest Development’s real estate
operations, through listed Filinvest Land, Inc., accounted for roughly half of
the group’s revenues last year. The unit’s sales was 17.45% up from P10.37
billion in 2010 due to higher turnover of middle-income residential projects.
Revenues from EastWest Banking Corp.
(EastWest Bank) and FDC Forex Corp., meanwhile, inched up by just 1.56% to
P9.12 billion from P8.98 billion, aided by higher interest income from credit
cards, automobile loans, and corporate lending.
EastWest Bank will be listing on the
local bourse next Monday, making it the first bank to debut on the stock
exchange in eight years.
Hotel revenues from the company’s
three unlisted hospitality units, meanwhile, more than tripled in 2011 to
P555.93 million versus P140.45 million the year previous as it recorded gains
from Crimson Resort and Spa, the company’s new hotel in Cebu province.
Revenues from Filinvest Development’s
sugar business under Pacific Sugar Holdings Corp., however, dipped by 6.17% to
P2.28 billion from P2.43 billion in 2010, mirroring a drop in the prices of raw
sugar, refined sugar, and molasses that year-on-year fell by 13%, 9%, and 44%,
respectively.
Filinvest Development’s total costs --
mostly used to sell lots, condominiums and club shares -- grew by 22.70% to
P9.19 billion from P7.49 billion, while expenses, mostly from the firm’s
financial and banking services, increased by 1.60% to P8.87 billion versus
P8.73 billion in the same period two years ago.
Previously, the company said it was
eyeing a possible private placement this year in order to boost its float level
-- pegged at 3.5% as of yesterday’s data -- and meet the minimum level of 10%.
Last year, the PSE said all listed
firms must have a minimum public float level of 10% by the end of a mandated
one-year curing period ending Jan. 1, 2013, or else face penalties leading to
eventual delisting from the stock exchange.
Filinvest Development shares shed
1.42% to P4.85 apiece yesterday from P4.92 last Friday. -- F. J. G. de la
Fuente
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