Megaworld earnings up 14% on aggressive expansion

Growth across key businesses, particularly the real estate and tourism segments, boosted the nine-month income of conglomerate Megaworld Corp. by 14 percent to P13.73 billion.

The company led by billionaire Andrew Tan on Thursday said revenues during the period climbed by 23 percent to P59.78 billion as Megaworld continued its aggressive expansion in the residential, commercial and hospitality units.

“We look forward to a strong 2024 with a clear focus on seizing new opportunities for growth that will benefit our stakeholders and the communities we serve,” Megaworld president Lourdes Gutierrez-Alfonso said in a statement.

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The real estate segment remained Megaworld’s key growth driver as sales climbed by 30 percent to P37.85 billion in the January to September period.

According to Megaworld, this was on the back of heightened demand for its township developments, which have so far reached 34, or just one project shy of its year-end target.

Last month, Megaworld unveiled the P15-billion Ilocandia Coastown township project in Laoag City, Ilocos Norte province.

Meanwhile, leasing revenues inched up by 6.5 percent to P14.16 billion.

At the same time, Megaworld Lifestyle Malls booked a 16-percent increase in revenues to P4.52 billion on rising occupancy rates and tenant sales.

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The office segment under Megaworld Premier Offices had a modest 2.4-percent growth to P9.63 billion. Experts projected office vacancy in Metro Manila to reach 20.5 percent by the end of the year as Philippine offshore gaming operators exited after a sweeping ban from Malacañang.

Hospitality under Megaworld Hotels and Resorts had a 38-percent surge in revenues to P3.64 billion after the launch of two tourism-related townships: Lialto Beach and Golf Estates in Lian and San Benito Private Estate in Lipa, both in Batangas province.

“These strategic developments are integral to Megaworld’s forward-looking strategy, positioning the company for sustained, long-term growth,” Megaworld executive director Kevin Tan said.

Megaworld plans to spend P350 billion until 2027 to build its township and hospitality empire. —Meg J. Adonis