Gotianun family-led Filinvest Development Corp. (FDC) said its attributable net income in the first quarter managed to rise 8 percent to P3 billion, from the previous year’s P2.8 billion.
Despite the Covid-19 pandemic, FDC said it managed to grow its income during the period due to the strong performance of East West Banking Corp. as well as the cost-control measures it implemented across its units.
Gross revenues fell slightly to P17.17 billion, from last year’s P18.46 billion, but the company said it was more than offset by the 27-percent drop in costs.
“We are in unprecedented times. The events continue to unfold and we cannot ascertain the full impact of the disruptions brought about by the Covid-19 pandemic,” said FDC President and CEO L. Josephine G. Yap.
“Beyond financial and scenario planning, FDC and its subsidiaries answered the pandemic with clear protocols to safeguard the health and safety of the Filinvest family.”
EastWest Bank’s had a net income contribution to the group of P2.3 billion in the first quarter, some 75 percent higher than last year, driven by better margins from its core lending and deposit-taking businesses, and higher trading gains, the company said.
Meanwhile, the imposition of the enhanced community quarantine (ECQ) had immediate effects on FDC’s real-estate business composed of listed subsidiary Filinvest Land Inc. and Filinvest Alabang Inc.
Sale of lots, condominium and residential units declined by 40 percent year-on-year to P3.4 billion in the first quarter, while net income contribution to the group fell by 26 percent year-on-year to P1.5 billion.
Power subsidiary FDC Utilities Inc. reported a slight decline in revenues by 5 percent to P2.2 billion, bringing net income to P511 million, as demand from its customers contracted in the latter part of March due the imposition of the ECQ.
The company’s plant, located in Misamis Oriental, remained fully operational even during the lockdown. It operates an aggregate 405-megawatt clean coal plant that is the largest operating baseload power plant in Mindanao.
The imposition of travel restrictions and quarantine measures as early as January impacted the hospitality business. Hotel operations under Filinvest Hospitality Corp. posted a revenue decline of 21 percent to P689 million for the period, bringing net income contribution to P15.6 million, as occupancy rates dropped.
It said five out of the six hotels and resorts under the Filinvest group’s portfolio remained in operation during the lockdown, but on a very limited basis to accommodate business needs.
Crimson Boracay, however, temporarily ceased operations while the entire island of Boracay was on lockdown. Quest Tagaytay was used as a quarantine facility for overseas Filipino workers and other returning overseas Filipinos while Crimson Alabang and Quest Clark were used by BPO employees.
The company’s six managed properties has approximately 1,800 rooms under the Crimson and Quest brands.