GT Capital suffers 56% drop in Q1 net income, dragged by banking and power units

GT Capital Holdings Inc. registered P1.73 billion in net income during the first three months of 2014, down 56 percent from P3.96 billion a year earlier, as the holding company's banking and power concerns suffered declines in their respective bottom line results.

 

Consolidated revenues went up 40 percent to P31.1 billion from P22.2 billion in the same comparable period, gaining largely from higher vehicle and real estate sales, the Ty family's holding company said in a disclosure to the Philippine Stock Exchange Thursday.

 

Equity in net income of associates plunged by 67 percent to P700 million from P2.2 billion, weighed by the results o f of Metropolitan Bank & Trust Co. (Metrobank) and AXA Philippines, GT Capital said. 

 

Metrobank’s net income primarily suffered from declines in trading, security and foreign exchange gains, while insurer AXA Philippines experienced a decline in premium revenues.

 

Global Business Power Corp., the power generating arm of GT Capital, registered a 42.4 percent decline in net income to P224.9 million from P390.7 million as a result of regulatory limits on prices at the Wholesale Electricity Spot Market, lower demand, and transmission problem in the Visayas grid in the aftermath of Typhoon Yolanda.

 

“Notwithstanding the anticipated softer growth during the first quarter of this year, GT Capital continued with its strategic consolidation initiatives," said chairman Arthur V. Ty.

 

"During the period, the company acquired Toyota Cubao Inc. and increased its direct ownership in Charter Ping An Insurance Corporation and Toyota Manila Bay Corporation,” he said.

 

Subsidiary Toyota Motor Philippines reported P1.4 billion in consolidated net income, up 25 percent from P1.1 billion on revenues of P23.6 billion, a 28-percent increase from P18.5 billion.

 

Property unit Federal Land registered P423.7 million in net profit, up from P231.6 million. Revenues grew by 38 percent to P2.3 billion from P1.7 billion.

 

“Federal Land started the year with a continued improvement in its booked revenues and rental income," said president Alfred V. Ty. – VS, GMA News