GT Capital nets P4B in H1

MANILA, Philippines—Newly listed GT Capital Holdings Inc. (GTCAP) jacked up its first-half net profit by 136 percent year on year to P4 billion due to one-time gains booked by property unit Federal Land Inc. alongside a double-digit expansion in core earnings.

Excluding non-recurring items, the conglomerate led by the family of taipan George Ty posted core net profits of P2.6 billion in the first semester, 51 percent higher than the comparative level last year.

Consolidated revenues for the first semester jumped by 188 percent to P10 billion year on year, resulting mainly from higher net income contribution of associates, the consolidation of power generation unit Global Business Power Corp. and the extraordinary gain of Federal Land.

Based on the company’s regulatory filing, Federal Land booked P1.4 billion in non-recurring revaluation gain from the conversion of a wholly owned subsidiary into a joint-venture corporation.

“The Philippine economy sustained its positive performance during the first half of the year. This favorable macro environment, together with specific positive developments in their respective industries, aided the component companies of GTCAP in delivering encouraging results for the period. Looking forward, we remain confident that we are on track in meeting our full-year objectives,” GTCAP chairman Arthur Ty said.

Aside from Federal Land and Global Power, GTCAP’s other component companies are Toyota Motor Philippines Corp., Metropolitan Bank and Trust Co. and Philippine AXA Life Insurance Corp.

However, only Federal Land and GBPC are fully consolidated into GTCAP while the other three component companies are carried through equity accounting.

Federal Land registered a consolidated net income of P1.7 billion in the first six months, 770 percent higher year on year. Core earnings outside of the P1.4-billion one-time gain likewise grew by 48 percent over the period.

“The company’s offerings, composed mainly of high-quality mid-market residential condominium units that are strategically located in Metro Manila, continue to gain further traction, resulting in sustained brisk sales. Aware of the stable demand for primary homes, we are further committed to our plans of launching new projects in response to the vital needs of the market,” Federal Land president Alfred Ty explained.

Global Power grew its first-half net income by 134 percent year on year to P1.3 billion, driven by the full-year operations of its coal-fired plants in Cebu and Panay, complemented by the company’s participation in the Wholesale Electricity Spot Market.

Toyota Motors realized a 35 percent year-on-year increase in net income of P1.5 billion for the period due to an increase in volume, sales and marketing initiatives. With the “warm” market acceptance of its new vehicle models, Toyota Motors said its volume sales growth of 17 percent outpaced the total automotive industry, which grew by only 7 percent.

AXA Life’s net income amounted to P321 million for the six-period, 10 percent lower than the level a year ago. A 183 percent jump in regular premium linked sales resulted in a corresponding front-loading of legal policy reserves and commission and bonus expenses, the disclosure said.

It was earlier reported that banking crown jewel Metrobank posted a consolidated net income of P7.4 billion in the first semester, 21 percent higher year on year. This was attributed to a healthy growth in core revenues together with the rationalization of operating expenses.