GT Capital Holdings Inc. (GTCAP), the recently listed investment-holding conglomerate of the Ty family, realized a 51 percent increase in its core net income of P2.6 billion from January to June 2012, as compared to P1.7 billion during the same period last year.
However, inclusive of non-core earnings, consolidated net income posted a hefty 136 percent year-on-year growth to P4 billion due largely to the P1.4 billion non-recurring, extra-ordinary gain of Federal Land, Inc. (Fed Land) during the period.
Consolidated revenues for the first six months of the year likewise surged 188 percent to P10 billion from P3.5 billion in the first half of 2011.
Revenue growth resulted mainly from higher net income contribution of associates; the consolidation of another GTCAP component company, Global Business Power Corporation (GBPC); and the said extra-ordinary gain.
“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 Fed Land and GBPC, GTCAP’s other component companies are Toyota Motor Philippines Corp. (TMP), publiclylisted Metropolitan Bank and Trust Co. (Metrobank), and Philippine AXA Life Insurance Corp. (AXA Life).
Fed Land and GBPC are fully consolidated into GTCAP, while the other three component companies are carried through equity accounting.
Fed Land registered a consolidated net incomeof P1.7 billion during the first six months of this year, resulting in a 770 percent growth surge from the P201.0 million attained during the same period in 2011, while core earnings grew by 48 percent.
“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,” Fed Land president Alfred Ty explained.
GBPC grew its first half 2012 net income by 134 percent, year-on-year, to P1.3 billion from P575 million last year.
Drivers of the growth include the full year operations of its coal-fired plants in Cebu and Panay, complemented by the company’s participation in the Wesm or Wholesale Electricity Spot Market.