FDC profit slumps as Gotianun businesses continue to struggle | Bilyonaryo Business News

FDC profit slumps as Gotianun businesses continue to struggle

Filinvest Development Corp. posted a 35 percent decline in its first quarter net income to P2 billion as most businesses — banking, real estate, power and hospitality — were affected by the coronavirus pandemic.

Revenues and other income contracted by 23 percent to P16.6 billion due to the declines across the portfolio.

“The challenges brought about by the pandemic continues to persist and we know fully well that the path to recovery will be volatile. It is worth noting however that times of crisis are also times of opportunity for strong, forward-thinking companies. We are using this time to focus on building scale while leveraging on the strong foundation and franchise we have built across our portfolio of businesses.,” said Josephine Gotianun-Yap, FDC president and CEO.

EastWest Bank chalked up a net income of P2 billion, down 12 percent due to the decline in loans and lower lower credit card yields.

The real estate business comprising Filinvest Land and Filinvest Alabang continued to bear the brunt of the pandemic as weak demand from cautious buyers held back a recovery. The residential segment reported a 25 percent decrease in revenues while rental revenues fell 17 percent to P2 billion due to restrictions.

Power unit FDC Utilities reported a nine percent drop in earnings to P463 million, dragged down by lower volumes. As a result, revenues dipped 10 percent to P2 billion.

Hotel operations under Filinvest Hospitality Corp. had been hit hard by the pandemic as it swung into the red with a P209 million loss. Revenue plunged by 66 percent to P231 million due to the travel restrictions.

FHC has a portfolio of six properties with a total of 1,800 rome under the Crmson and Quest brands.

“Prospects for 2021 remain uncertain but we are hopeful that the economy can bounce back once community quarantines are relaxed. We recognize that crucial to a robust economic recovery is renewed business and consumer confidence. We are supportive of efforts to open the economy while taking resolute steps to fast-track the vaccination rollout program and keep theCOVID-19 caseload to the lowest level possible,” Gotianun-Yap said.

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