Megaworld posts 17% jump in profit to P15.2B
Tycoon Andrew Tan-led Megaworld Corp. grew its net profit attributable to equity holders of parent firm by 17 percent last year to a record high P15.2 billion on the back of a double-digit rise in revenues across its residential development, leasing and hotel portfolio.
Including earnings attributable to minority interest, Megaworld’s 2018 net profit rose by 17 percent to P15.8 billion.
Consolidated revenues grew by 15 percent to P57.4 billion, the company said in a press statement.
The company’s rental businesses—comprising of office and commercial leasing—gained by 21 percent to P14.3 billion, contributing about a quarter of total business in 2018.
Megaworld has now achieved more than 70 percent of its annual rental income target of P20 billion by 2020.
“We have already secured multiple pre-lease deals for our office buildings as well that are in the pipeline until next year. Same goes to our mall and commercial spaces that are set to open in our various townships. For our residential properties, we continue to see strong take-up especially in our mature townships, and there is already a consistently growing interest in our newly launched townships,” said Kevin Tan, chief strategy officer at Megaworld.
Megaworld’s residential business expanded revenues last year by 11.5 percent to P38 billion, contributing 66 percent of total consolidated revenues during the year.
The group launched 25 residential projects in 2018, bringing to the property market around P106 billion worth of fresh inventory.
As an indicator of further revenue growth in the years ahead, the company achieved P135 billion worth of sales reservation during the year.
Megaworld’s hotel business likewise grew revenues by about 14 percent to P1.5 billion. The company launched two new hotels last year: the 684-room Savoy Hotel Manila in Newport City and the 126-room Twin Lakes Hotel in Twin Lakes, Laurel, Batangas. This brought the number of hotels to seven by end-2018.
“We have gained the fruits of our expansion in the regions as we saw continuing growth in the demand for residential units as well as office and commercial spaces in our various townships across the country. Perhaps, as we build these townships, people saw the advantage of living where they work, and living where everything is just within reach. This model makes every aspect of our business viable and expandable, and we continue to spot for opportunities where we can further grow and innovate our offerings,” said Tan.
Last year, Megaworld also opened its biggest mall development outside Metro Manila, the Festive Walk Mall in Iloilo Business Park, offering around 90,000 square meters in gross floor area. It also opened two new community malls—the San Lorenzo Place in Makati City and The Village Alabang in Las Piñas City.
