CONGLOMERATE JG Summit Holdings Inc. reported on Friday a 22 percent drop in consolidated net income in the first quarter of this year mainly due to the lower net income of its airline subsidiary Cebu Pacific.
In a disclosure to the Philippine Stock Exchange (PSE), JG Summit said consolidated net income from equity holders of the parent fell to P7.51 billion in the first quarter of this year from P9.63 billion in the previous year.
Higher fuel prices and the weaker peso against the US dollar during the first quarter this year weighed on Cebu Pacific’s earnings. The airline posted net income of P1.28 billion in the first three months, down 68.2 percent from the P4.04 billion recorded in the same period last year.
JG Summit said consolidated revenues grew 11.4 percent year-on-year to P67.51 billion on the increased revenues of core subsidiaries Universal Robina Corporation, Robinsons Bank Corporation, Cebu Pacific, Robinsons Bank Corporation, and JG Summit Petrochemicals Group.
But revenues at real estate unit Robinsons Land Corporation fell slightly to P5.42 billion from P5.47 billion in the same quarter last year due to lower in realized sales from the residential division.
Revenues from its core investments also fell as the dividend income received from telecommunications provider PLDT dropped 48.6 percent to P528.91 million this year. PLDT declared a lower dividend of P28 per share this year from P57 per share in 2016.
JG Summit holds the various businesses of the Gokongwei family. In addition to its subsidiaries, it also holds an 8 percent interest in PLDT and a 27.1 percent interest in Manila Electric Company (Meralco).