Megaworld net profit up 15% to P3.69B in H1
MANILA, Philippines—Tycoon Andrew Tan-led Megaworld Corp. grew its first-semester core net profit by 15 percent to P3.69 billion year on year on higher earnings from its residential development and business process outsourcing office portfolio.
The core net profit for the first semester was net of P1.95 billion in nonrecurring gain due to the sale of shares of its parent firm Alliance Global Group. Megaworld has yet to disclose the net profit for the period attributable to equity holders of parent.
Megaworld attributed the growth in first-half income to the “continued strength of its residential real estate sales and BPO office rental portfolios,” the company said in a disclosure to the Philippine Stock Exchange.
Consolidated revenues amounted to P15.43 billion, up 12 percent year on year. Rental income from Megaworld’s BPO office and retail developments grew 39 percent year on year to P2.26 billion.
Megaworld said it remained in a strong net cash position, with cash and cash equivalents totaling P29.1 billion.
A leading residential developer, Megaworld pioneered the development of community townships that incorporate the live-work-play-learn concept. It has 10 ongoing mega-projects within Metro Manila, Iloilo and Cebu as well as several residential developments within the Makati central business district and San Juan.
The company was also the first to develop an information technology park in the Philippines through Eastwood City, which provides a 24/7 work environment to business process outsourcing companies servicing the global market. The success of Eastwood City, home to a workforce that is 45,000-strong and growing, prompted Megaworld to expand its portfolio to McKinley Hill, now host to some of the biggest names in the BPO industry and with a workforce of about 35,000.
Megaworld is recognized as the leader in office development and is the largest BPO office landlord. By the end of 2012, the company expects to have about 500,000 square meters of office space in its portfolio.
