House of Investments incurs net loss

YUCHENGCO-LED House of Investments, Inc. (HI) incurred a net loss in the second quarter, further expanding its year-to-date loss, after the disposal of its investment in the construction sector.

In a stock exchange disclosure on Aug. 22, the company said its net loss during the April-to-June period was at P303.81 million, a reversal of its P216.95 million net income a year ago.

HI registered a negative bottom line despite a rise in revenues to P2.42 billion from P2.25 billion last year.

For the first half, HI suffered a net loss of P369.76 million, reversing the P789.54 million net income recorded last year, citing the effects of the divested construction business.

“Due to the effect of the disposal of investment by the parent company in construction, coupled with losses incurred by the former subsidiary prior to divestment, the group posted a net loss of P369.76 million as of the period,” the company said.

In April, HI announced that it had sold 20% of its investment in listed construction subsidiary EEI Corp. to the Romualdez-led RYM Business Management Corp. for P1.25 billion.

The company in May sold another 14.346% of its stake in EEI to Industry Holdings and Development Corp. for about P1.08 billion.

HI’s revenue in the first half reached P5.15 billion, up 18% from P4.37 billion in the same period last year.

“Revenue from services grew by 71%, which is mainly attributable to the expansion of the leasing business of the group. Likewise, vehicle sales have improved which resulted to higher revenues from goods. Due to higher enrollment, the education sector showed a 17% growth compared to last year,” HI said.

HI’s core businesses are car dealership, construction, education, and property management services. It has portfolio investments in pharmaceuticals, energy, and death care.

Shares of HI at the local bourse were last traded on Aug. 22, when it closed at P3.82 apiece. — Revin Mikhael D. Ochave