Units’ strong growth buoys Megaworld income in H1

Megaworld Corp., the property development arm of businessman Andrew Tan, said its income in the first half rose 26 percent to P6.73 billion from last year’s P5.35 billion as its core businesses registered double-digit growth rates.

Consolidated revenues for the period reached P27.45 billion, 23 percent higher from P22.4 billion last year.

For the second quarter alone, its profits grew 12 percent to P3.22 billion from the previous year’s P2.86 billion. Revenues came in at P14.32 billion, up 17 percent from the previous P12.22 billion.

“For the first time since the pandemic, we have achieved double-digit growth across all business segments. This is a clear indication that we are on the right track in our goal to finally go back to the pre-pandemic levels of our core businesses,” said Kevin Andrew L. Tan, the company’s EVP and chief strategy officer.

“We remain focused on our goals of expansion, with a slew of projects in our various townships that commit to our mission of nation-building. As the economy continues to recover, Megaworld maintains its positive outlook for the future as we build on the company’s consistent performance with an aim to go beyond our targets for the rest of year.”

The company said its residential segment remained to be the primary contributor to the sharp growth in the first half earnings as its real estate sales rose 26 percent to P16.99 billion in the first six months of the year compared to P13.53 billion last year.

From January to June, the company has already injected approximately P21 billion worth of additional inventory into the market and has generated around P51 billion in reservation sales, reflecting a 38-percent increase from year-ago level.

The company’s rental income grew 19 percent to P7.5 billion from last year’s P6.3 billion. Its hotel operations showed improvement as its income rose 49 percent to P1.08 billion from last year’s P724.36 million due to the consistent performance of its in-city hotels and the increase in leisure-related activities.

Rental income from its offices reached P6 billion, a 15-percent improvement from last year. The BPO sector continued to grow in spite of the pandemic, enabling its offices to maintain a higher than industry occupancy rate of 91 percent.

Meanwhile, its shopping malls also registered improved performance as more retail partners were allowed to restart operations, coupled with much-improved foot traffic in its various mall properties across the country. Rental income from the malls grew 41 percent year-on-year to P1.5 billion during the first two quarters.