THE first quarter of 2015 saw a 13.9 percent improvement in the combined net income of companies listed at the Philippine Stock Exchange (PSE) to P158.28 billion from P138.96 billion in the same period last year. The increase was mostly driven by significant profit gains in the property and services sectors.

The consolidated revenues of listed firms for the January to March 2015 period was marginally higher by 1.6 percent to P1.58 trillion from P1.55 trillion in the first three months of 2014.

“We are optimistic that listed companies will be able to sustain their solid profit growth throughout 2015. This strong performance by corporate Philippines will remain to be one of the main drivers of stock market growth,” said PSE President and CEO Hans B. Sicat.

Five out of six sectors posted net income growths in the first quarter of 2015 led by the property sector, which had profits that soared by 52.4 percent to P27.42 billion. On a revenue basis, four of the six sectors recorded higher revenues, again led by the property sector with a 22.4 percent increase.

The combined income of the property sector was boosted by higher real estate sales and leasing income, as well as a non-recurring share sale gain for one property firm.

Services

Significant profit growth from airline companies and telcos were the main contributors to the increase in consolidated profits of the services sector, which rose by 27.9 percent to P25.57 billion.

Securities trading gains were the main reason for the 7.7 percent collective income increase of the financial sector. Holding firms had a combined net profit of P43.65 billion, up by 6.5 percent due to better performances from the business units of these firms.

Mining and oil had a 2.9 percent increase in consolidated income to P2.97 billion, arising mainly from better prices of precious metals in the global market, higher sales of nickel and foreign exchange gains.

Drops

The profit of firms in the industrial sector was down by 1.5 percent to P30.84 billion on lower oil prices and higher operating expenses.

The PSEi-members accounted for 70.4 percent of the total market net income, with its 30 constituents posting a combined profit of P111.41 billion in the first quarter of 2015, higher by 9.2 percent from the same period a year ago.

The positive first quarter 2015 result comes after another banner year in 2014, where the combined net profit of listed companies was higher by 8.3 percent to P582.50 billion from P538.06 billion in 2013. (PR)