Megaworld income rose 12.13% in Q1 to P2.63B
Tycoon Andrew Tan-led Megaworld Corp. grew first quarter net profit by 12.13 percent year-on-year to P2.63 billion, boosted by record rental revenues.
In a disclosure Wednesday to the Philippine Stock Exchange, Megaworld said its profit in the first three months had been driven by the rental business, with revenues hitting a record high of P2.29 billion, 15.18 percent higher than the level in the same period last year.
“We have sustained our expansion plans for our office and mall businesses, which bolstered our rental revenues. In the next five years, we see our rental businesses becoming the key driver of our growth as we expect a continuing momentum in consumer spending and a remarkable growth in BPO revenues,” Megaworld treasurer Francis Canuto said.
The company earlier announced that rental revenues would hit the P11-billion mark by the end of this year.
Consolidated revenues of the Megaworld Group – which includes those booked by subsidiaries Global-Estate Resorts Inc. (GERI), Empire East Land Holdings Inc. and Suntrust Properties Inc. – amounted to P11.46 billion for the first three months, up by 9.49 percent from the same period last year.
As an indicator of future revenue growth, residential sales continued to grow in the first three months of the year. Sales were up by 10 percent year-on-year to P6.86 billion.
“We continue to innovate our residential offerings that adapt to the diverse characteristics of each township that we build. That is why we are able to sustain the growth in our residential business,” Canuto said.
Megaworld is the property developer behind 20 integrated urban township developments across the Philippines. Among these are Eastwood City in Quezon City, (18.5 hectares); Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town Center (5 hectares), all in Fort Bonifacio; The Mactan Newtown in Cebu (28.8 hectares) and Iloilo Business Park (72 hectares) and Sta. Barbara Heights (173 hectares), both in Iloilo.
