Megaworld 9-mo profit tempered by strong dollar

Billionaire Andrew Tan’s Megaworld Corp. saw a continued postpandemic rebound across all segments while profit growth was blunted by payments on US dollar loans as the greenback breached record highs in the third quarter of the year.

In a statement on Wednesday, the township builder said net income from January to September rose 3 percent to P8.4 billion while total revenues were up 15 percent to P42.5 billion.

“While our bottom line was tempered by the strong dollar, our underlying operations and profitability remained robust,” Megaworld chief strategy officer Kevin Tan said in a statement on Wednesday.

“We look forward to sustaining our momentum and closing the year strong,” he added.
Megaworld’s shopping malls sustained a recovery as revenues soared 51 percent to P2.3 billion during the period.

“The impressive revenue growth was mainly driven by increased spending, higher foot traffic and a return to its highest historical occupancy rate of 90 percent as of the third quarter of 2022,” Megaworld said.

Real estate sales also climbed 13 percent to P26.2 billion while the office leasing segment expanded by 12 percent to P9.1 billion.

The office leasing portfolio ended the period with an above-industry occupancy rate of 92 percent due to the expansion of the business process outsourcing sector.

Megaworld hotels and resorts saw revenues increase by 38 percent to P1.8 billion as pandemic restrictions were eased earlier this year.

The firm currently has 28 master‐planned integrated urban townships across the Philippines.