13th November 1998
FIRST PACIFIC'S METRO PACIFIC ANNOUNCES STRONG REVENUE GROWTH BUT LOWER PROFIT IN THE YEAR'S FIRST NINE MONTHS
First Pacific Company Limited's Philippines flagship, Metro Pacific Corporation, announced today that operating profit for the first nine months more than tripled to 
2.8 billion, while net profit fell 75 per cent to 172 million, reflecting higher finance charges and challenging operating conditions.
Revenue grew 177 per cent to 14.8 billion due to the effects of Metro Pacific consolidating Smart Communications, Inc., its cellular phone subsidiary; Bonifacio Land Corporation (BLC), which is developing the Fort Bonifacio urban development in Metro Manila; Negros Navigation Company, Inc., a leading domestic shipping line; and Landco Pacific Corporation, which develops property outside the capital city.
While operating profit rose 211 per cent to 2.8 billion, overall profitability was impeded by finance charges increasing to 1.737 billion from 233 million.
Metro Pacific's President, Napoleon Nazareno, "We continue to face challenging times but Metro Pacific is fortunate to be in a position to withstand the crisis. We believe our projects continue to offer value even in slow markets, however, we will be particularly competitive when the overall business climate turns for the better."
Review of Operations
Smart recorded continued strong growth in subscribers to its analogue-based service, with 745,000 subscribers at the end of the third quarter, compared with 623,000 at year-end. Subscribers to its fixed-line service stood at 108,000, compared to 85,000 at year-end, slowed by interconnect problems which are impeding service quality among all smaller fixed-line providers.
BLC's Fort Bonifacio project is proceeding ahead of schedule, with 60 per cent of the Big Delta's infrastructure already completed - putting it ahead of its timetable that calls for the work to be completed by 2000 - compared with 45 per cent at the beginning of the year. The project's first public area, an entertainment complex called "The Fort" opened in September with a range of restaurants that are recording strong customer traffic.
Negros Navigation - in which Metro Pacific took a 55 per cent stake earlier this year for 900 million - is poised to benefit from its recent merger of its fast-ferry business with that of Aboitiz Parkview Transport Holdings, Inc. The expanded entity is the largest fast-ferry operator in the Philippines, with 12 vessels valued at approximately 1.7 billion. The combination is allowing economies of scale and improved service efficiencies.
In Metro Pacific's consumer-products division, Metrolab Industries recorded improved sales amid solid market demand for its skin-care products, helped by the expansion of its product line. Meanwhile, Metro Bottled Water recorded improved sales of its market-leading Wilkins Water brand, amid increased market share and a broadening of its distribution network.
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For further information, please contact:
| Corazon P. Guidote | Tel: (632) 811 0367 |
| Group Vice President | |
| Corporate Communications and | |
| Investor Relations | |
| Metro Pacific Corporation |
First Pacific Company's information can also be accessed on:
| Web Site: |
http://www.firstpacco.com http://www.irasia.com/listco/hk/firstpac |
E-mail: info@firstpac.com.hk |
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