Megaworld nets P3.8B

Tycoon Andrew Tan-led Megaworld Corp. grew attributable net profit by 16 percent year-on-year to P3.8 billion, driven by a double-digit expansion in earnings from residential development, commercial property rental and hotel operations.

Excluding a non-recurring gain of about P189 million in the first three months, Megaworld posted a 13 percent year-on-year growth in net income.

Consolidated revenues rose by 15 percent year-on-year to P14.9 billion during the first quarter, around 64 percent of which came from the residential business while 26 percent was contributed by its rental portfolio and 4 percent by its hotel businesses.  The remainder came from non-core revenues.

Including earnings attributable to minority interest, Megaworld’s first quarter net profit rose by 18 percent year-on-year to P4.1 billion.

“It is always encouraging to see all of our core businesses exhibiting positive growth during the first quarter as this sets our pace for the rest of the year. We will be working towards maintaining the growth momentum until year-end. We are confident that stronger numbers will be achievable given our pipeline of projects this year,” Kevin Tan, Megaworld chief strategy officer, disclosed to the Philippine Stock Exchange on Wednesday.

First quarter revenues from residential sales grew by 11 percent to P9.5 billion.

As an indicator of future residential revenue growth, the company also generated around P48 billion in new reservation sales and brought about P24 billion worth of fresh inventory to the property market in the first quarter.

Megaworld’s rental business gained by 16 percent year-on-year to P3.9 billion during the first quarter.

The company’s hotel business, the fastest-growing segment, grew revenues by 56 percent year-on-year to P574 million.