MANILA, Philippines - With higher income contribution from its operating units, GT Capital Holdings Inc. grew its profits by nearly half in the first nine months of the year as its presence in key consumer-focused sectors and consolidation strategy benefited the company, a top company official said.
In a regulatory filing, GT Capital said its consolidated net income surged 44 percent to P7.7 billion in the nine-month period from P5.3 billion a year ago while consolidated revenues spiked 362 percent to P77.2 billion from P16.7 billion.
“GT Capital’s strong performance is a result of inherent growth within the key sectors where its component companies operate, together with our consolidation strategy, which continues to create value through synergy,†said GT Capital chairman Arthur Ty.
The conglomerate attributed the significant revenue growth to large income contributions from Metropolitan Bank & Trust Co. (Metrobank) and AXA Life Insurance Corp., and higher real estate sales of Federal Land Inc.
It also tagged the increase in direct ownership to 51 percent of both Toyota Motor Philippines Corp. (TMP) and Global Business Power Corp. (GBPC), and a non-recurring revaluation gain from the consolidation of TMP for the increase in revenues.
Specifically, Metrobank’s consolidated net income more than doubled to P20.7 billion from P10.2 billion in the nine-month period. Metrobank said growth drivers were the steady pickup in core revenues, robust expansion in treasury and investment activities, and an increase in non-interest income.
TMP, the country’s top automotive company, said it sold 55,334 vehicle in the nine-month period for a 36-percent market share. It posted a net income of P3.2 billion, up 26 percent from P2.6 billion last year.
For the property sector, Federal Land said its core income soared 93 percent to P847 million from P439 million given the 32-percent improvement in revenues to P6 billion.
“Federal Land sustained its strong sales momentum during the period, as the market continued to warmly accept the company’s various offerings. The company has significantly increased both its property sales and rental income,†said Federal Land president and GT Capital vice-chairman Alfred Ty.
AXA Philippines increased its income to P1 billion, up 59 percent from P653 million a year ago as premium revenue rose 59 percent to P13.9 billion from P8.7 billion.
But power producer GBPC’s income declined to P1.6 billion from P2.1 billion amid soft Wholesale Electricity Spot Market prices due to lower peak power consumption early this year.
GT Capital, led by banking tycoon George S.K. Ty, is spending up to P40 billion for capital expenditures this year, up from P15 billion last year as the company aims to grow revenues and profits by double digits this year.