Megaworld finished 2023 with record income

MANILA, Philippines  —Tycoon Andrew Tan’s Megaworld Corp. beat prepandemic earnings in 2023 to end the year with a record net income of P19.4 billion, fueled by residential sales and earnings from malls and hotels.

Megaworld, one of the country’s biggest developers, said profits in the past year grew by an annual 26 percent. The historic-high finish also breached its 2019 profit of P19.3 billion.

“2023 marked a pivotal moment for Megaworld as our financial milestones showcased our strategic agility and innovations in our product offerings,” Megaworld chief strategy officer Kevin L. Tan said. “This proves our ability to adapt and thrive in changing times to reach new heights,” he added.

In the filing, Megaworld said net income attributable to the parent company’s shareholders jumped by 29 percent to P17.3 billion. Total revenues expanded by 17 percent to P69.7 billion. Its real estate sales climbed by 16 percent to an unprecedented P42.7 billion while reservation revenues, a future indicator of earnings, grew 17 percent to P139 billion, beating its target of P130 billion.

Megaworld also rolled out new projects worth P72.6 billion, an increase of 61 percent over 2022. Meanwhile, Megaworld’s leasing revenues climbed 14 percent to P17.9 billion, also a record for the developer.

READ: Megaworld to build its tallest hotel to date

The surge in mall revenues, which jumped by 54 percent to P5.3 billion, was primarily due to the rebound in retail operations and tenant sales.

Increased local travel

Megaworld’s office leasing revenues saw a modest growth of 3 percent, totaling P12.6 billion, as the work-from-home trend weighed on the segment.

Lastly, Megaworld Hotels & Resorts witnessed a 46-percent surge in revenues to P3.8 billion.

This growth was bolstered by a spike in local travel and meetings, incentives, conferences and exhibitions (Mice).

READ: Megaworld to spend P350B on township developments

“The company’s well-positioned hotel offerings successfully captured the increased local travel and Mice activities, improving overall occupancy and room rates, especially in Belmont Hotel Manila, Savoy Hotel Manila and Twin Lakes Hotel in Tagaytay,” Megaworld said.

The builder, a pioneer in the urban township concept when it launched the 18.5-hectare Eastwood City in Quezon City in the mid 1990s, finished the year with 31 master-planned estates.

These include the Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Boracay Newcoast in Boracay Island (150 hectares); and Twin Lakes in Laurel, Batangas near Tagaytay (1,300 hectares).