Broad boom boosts Megaworld bottom line by 12% to P21.7B

MANILA, Philippines — Expansion across all businesses of Megaworld Corp. as well as high demand for its townships, lifted the company’s earnings by 12 percent to P21.7 billion last year.

In a stock exchange filing on Wednesday, the developer led by billionaire Andrew Tan said revenues also leaped by 17 percent to P81.7 billion, buoyed by growth in its real estate, leasing and hospitality units.

Strong demand for residential properties both in Metro Manila and key provincial locations resulted in a 19-percent jump in real estate sales, which reached about P51 billion.

READ: Megaworld 2024 income reaches P21.7B

This came after Megaworld launched four townships in 2024 alone, bringing its total township portfolio to 35. The company’s total land bank likewise reached almost 7,000 hectares.

At the same time, “high-profile” tenants at Megaworld Premier Offices and Megaworld Lifestyle Malls helped propel leasing revenues by a tenth to P19.7 billion.

The mall segment added 50,000 square meters (sq m) of new tenant stores, which contributed to the 19-percent uptick in revenues to P6.3 billion, along with higher foot traffic and consumer spending.

Meanwhile, Megaworld Premier Offices had 140,000 sq m of new leases, mostly to multinational companies and business process outsourcing firms.

Office revenues climbed by 7 percent to P13.4 billion.

The group’s hospitality business under Megaworld Hotels and Resorts likewise saw revenues surge by 34 percent to a record P5.1 billion.

This was brought about by expansion in its MICE (meetings, incentives, conventions and exhibitions) capabilities and a rebound in domestic and international travel.

Megaworld also opened the Grand Westside Hotel, touted to be the largest hotel in the country with 1,530 rooms.

“Moving forward, we will set our eyes on more innovations as well as on how we can collaborate to further innovate, but still keeping our commitment to care for our people and our communities,” Megaworld president Lourdes Gutierrez-Alfonso said in a statement.

Megaworld’s earnings also grew despite challenges in the country’s office and residential industries last year, as vacancy rates reached an all-time high following the exit of Philippine offshore gaming operators (Pogos).

Megaworld previously clarified that it had little exposure to Pogos, especially after the industry’s peak in 2019.