Megaworld Q3 income up

Tycoon Andrew Tan-led Megaworld Corp. grew net profit in the first nine months by 13.1 percent year-on-year to P11.29 billion on double-digit expansion in earnings from leasing portfolio and residential development.

In the third quarter alone, Megaworld’s net profit expanded by 14 percent year-on-year to P4.04 billion, the company disclosed to the Philippine Stock Exchange on Monday.

Megaworld’s consolidated revenues grew by 12.6 percent year-on-year for the first three quarters of the year to P41.76 billion.

“We have been tracking a promising trajectory during the first nine months of 2018, and we are optimistic to finish the year strong. The residential landscape has been experiencing a resurgence, which has been very evident in its growth during the past quarters. Our rental business for both offices and Megaworld Lifestyle Malls remains to be the fastest-growing segment of the company,” Megaworld senior vice president and treasurer Francis Canuto said in a press statement.

Total residential revenues grew by almost 10 percent for the nine-month period to P23.04 billion.

Gross margins in this segment of the business also improved by more than 200 basis points year-on-year.

“We have already rolled out quite a number of residential projects this year, which reflects the kind of demand that we have been seeing in 2018. Megaworld will always be market-driven, and as long as we see this type of demand on the ground, then we will continue to launch projects aggressively. Moreover, we have already secured the land to do this, which is key in being a leader in this industry,” said Canuto.

Rental income also grew by 18.6 percent year-on-year in the first nine months to P10.46 billion, driven by revenues from Megaworld’s office and mall portfolios which rose by around 18.6 percent year-on-year.

During the last 29 years, Megaworld has grown into one of the country’s largest property developers. It has built over 660 residential developments, 54 office towers and 17 lifestyle malls across its 23 masterplanned developments covering more than 4,000 hectares of land around the country. —DORIS DUMLAO-ABADILLA