GTCAP’s profit at P2.95B in Q1

TY family-led conglomerate GT Capital Holdings Inc. grew its first quarter net profit by 5 percent year-on-year to P2.95 billion, driven by higher earnings across its banking, power generation automotive, real estate and insurance businesses.

GT Capital’s non-life insurance subsidiary incurred a nonrecurring reinsurance expense in the first quarter, without which net profit would have expanded by 12 percent, the conglomerate reported to the Philippine Stock Exchange on Tuesday.

Consolidated revenues in the first three months rose by 16 percent year-on-year to P40.8 billion. The revenue growth was fuelled by robust vehicle sales from Toyota Motor Philippines Corp.(TMP), higher kilowatt-hour (kWh) sales realized by Global Business Power Corp. (GBPC) as well as sustained real estate sales from Federal Land Inc. (Federal Land) and Property Company of Friends Inc. (Pro-Friends) led to GT Capital’s revenue growth.

“GT Capital’s component companies met expectations at the start of 2016. Despite macroeconomic headwinds, the company sustained its growth trajectory. For the rest of the year, we believe that key economic drivers such as continued expansion of the BPO industry and sustained growth in progressive next wave cities, will benefit GT Capital’s lines of business,” GT Capital chair Arthur Ty said.

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