JG Summit swings back to profit, cites gains from asset revaluations

Gokongwei-owned JG Summit Holdings, Inc. posted consolidated net profits of P8.55 billion last year, a turnaround from a net loss of P690 million in the prior year due to gains from asset valuations as financial markets improved. Consolidated revenues grew by almost a tenth to P107.96 billion as most units posted revenue growth, the listed holding company told the Philippine Stock Exchange on Tuesday. While consolidated operating expenses increased by a fifth as a result of a higher level of business activity in its food, telecommunication and airline businesses, consolidated operating income went up by more than a third due to more efficient operations that improved margins last year, it said. Meanwhile, consolidated earnings before interest, taxes, depreciation and amortization — essentially the income that a company has free for interest payments — reached P27.04 billion, a 28 percent improvement over last year’s P21.16 billion due to the strong performance of its subsidiaries, JG Summit said. Cebu Air, Inc., the operator of Cebu Pacific, posted a net income of P3.26 billion last year from a net loss of P3.26 billion in 2008. Cebu Pacific was the group’s biggest income contributor, accounting for about 39 percent of the total. The holding firm said unit Universal Robina Corporation’s net income improved more than 10 times to P3.89 billion after recognizing a market valuation gain of P702 million last year against a P2.26-billion market valuation loss in the prior year. It was the second biggest income contributor to the group at about 29 percent of the total. Meanwhile, net profits of Robinsons Land Corporation increased by 3.8 percent to P3.27 billion in the fiscal year ending on September 30, 2009 due to better performance of its malls, offices and after recognizing a gain from an interest swap transaction involving a P2-billion bond. The property developer contributed 23 percent of the group’s total income. Digital Telecommunications Philippines, Inc. (Digitel) posted a net income of P259.7 million last year, reversing a net loss of P1.98 billion in the prior year due higher revenues. JG Summit traced the income to the 40-percent rise in wireless revenues. However, Digitel’s wired voice service revenues dropped by about a tenth due to lower international and domestic tolls. JG Summit Petrochemicals Corporation’s continued to post a net loss, although almost a quarter lower at P511.1 million last year. Robinsons Savings Bank posted net earnings of P202.81, 41 percent better than in the prior year due to higher interest income, its parent said. — N.P. Aquino, GMANews.TV