NLEX Corporation yesterday reported net income for the first quarter increased 16 percent on higher traffic from both North Luzon expressway (NLEx) and Subic-Clark-Tarlac expressway (SCTEx).
Formerly Manila North Tollways Corp., the company said consolidated net income in January to March this year also rose 16 percent to P1.07 billion, from P922 million in the first quarter of 2016.
“Income growth was driven by higher revenues during the period which increased by eight percent, on the back of sustained traffic growth across NLEx and SCTEx and lower cost of services,” it said.
Toll revenues for the three-month period grew seven percent to P2.74 billion, from P2.56 billion a year earlier, driven by higher traffic volume.
Average daily vehicle entries at NLExrose seven percent to 229,633 during the period, while average daily traffic in SCTEx jumped 20 percent to 51,128.
“Traffic for each expressway grew by seven percent and 20 percent, respectively, quarter-on-quarter. The traffic growth pushed quarterly revenues up by eight percent to P2.79 billion,” NLEX Corp. said.
The company’s operating revenues were derived mainly from toll fees. It also generated other income from advertising materials and structures, toll service facilities along the NLEx and rental income.
Non-toll revenues for the first quarter of 2017 surged 33 percent to P47.7 million, from P35.7 million a year ago, due to higher income generated from toll service facilities and advertising revenues.
The company said as of end-March this year, total compensation for the Toll Regulatory Board’s inaction on toll rate adjustments due since Jan. 1, 2013 for NLEX is approximately P4.9 billion, excluding value-added tax.
SOURCE: Malaya Business Insight