By Iris Gonzales (The
Philippine Star) | Updated August 12, 2016 - 12:00am
MANILA, Philippines - DMCI Holdings
Inc. reported a five percent drop in net income in the six months ending
through June to P6.2 billion due to lower contributions from its real estate,
nickel mining and water businesses.
Isidro Consunji, chairman and
president of DMCI Holdings. said there was a slowdown in earnings for DMCI
Homes because of the deferred recognition of revenues from its completed
high-rise projects.
DMCI Homes contributed P708 million
to group earnings, down 59 percent from the previous year even if sales and
reservations increased during the period.
It realizes sales only when
the unit is fully completed and at least 15 percent of the contract price has
been collected.
Last year, the company shifted to
developing more high-rise projects, which normally takes around three years to
complete.
Consunji, however, expects DMCI
Homes to start realizing income from these projects by 2018. “This is really
just a timing issue for DMCI Homes,” he said.
He said the expiration of Maynilad’s
income tax holiday in 2015 also affected DMCI’s bottom line.
Net income contributions from
Maynilad fell four percent to P1.1 billion.
Nevertheless, higher billed volume
(four percent) and a five percent increase in average effective tariff muted
the impact of its income tax holiday expiration.
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