Megaworld posts 34% growth in H1 profit

MANILA -Billionaire Andrew Tan’s Megaworld Corp. said profit growth accelerates during the first semester of 2023 as mall revenues surged and residential sales remained robust.

Net income from January to June climbed 34 percent to P7.9 billion while total revenues reached P32 billion, up 17 percent versus the same period in 2022.

“With increasing demand for residential and commercial properties outside Metro Manila, we have properly positioned ourselves to achieve growth through strategic land banking,” Kevin Tan, Megaworld chief strategy officer, said in a statement on Thursday.

Key growth drivers were real estate sales, which climbed 12 percent to P19.1 billion, and mall revenues, which soared 71 percent to P2.5 billion.

“The strong growth was mainly driven by increased spending and higher rents as the company started to collect full rents beginning this year,” said Megaworld, which is part of Tan’s conglomerate, Alliance Global Group.

Reservation sales, an indicator of future revenues, ramped up by 49 percent to P76.1 billion, accounting for nearly 60 percent of its full-year target of P130 billion.

Megaworld, which has developed 30 township projects across the country, said it launched P28.2 billion worth of projects during the first six months of the year.

Meanwhile, offices rentals were saw modest growth of 4 percent to P6.3 billion, mainly due to the contributions of business process outsourcing firms.

Megworld’s hotels and resorts segment also booked revenue growth of 58 percent to P1.7 billion during the first semester.

“We also worked doubly hard in coming up with new, innovative, and sustainable product offerings in order to further strengthen our leadership as a pioneering real estate company,” Tan said in the statement.