Megaworld nets P6.7 billion in H1, up 26%

Andrew Tan-led property giant Megaworld Corporation saw its bottom line grow by double digits in the first half of 2022 on the back of growth across its businesses.

In a disclosure to the Philippine Stock Exchange on Tuesday, Megaworld reported a net income of P6.7 billion during the January to June period, up 26% from P5.4 billion posted in the same period last year.

The company’s consolidated revenues stood at P27.5 billion, up 23% from P22.4 billion year-on-year.

Megaworld said its core business all registered double digit growth during the period, led by residential sales, mall and office rentals, and hotel operations.

“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 Tan, Megaworld chief strategy officer.

Megaworld said its residential segment remained to be the primary contributor to the growth in its first half earnings as its real estate sales rose 26% to P17.0 billion from P13.5 billion during the same period last year.

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

The company’s surging rental income also continued to drive Megaworld’s earnings for the period by growing 19% to P7.5 billion during the first six months of the year compared to P6.3 billion during the same period last year.

Rental income from Megaworld Premier Offices amounted to P6 billion, up 15% as the BPO or business process outsourcing sector continued to grow in spite of the pandemic, enabling its premier offices segment to maintain a higher than industry occupancy rate of 91%.

Meanwhile, Megaworld Lifestyle Malls registered rental income growth of 41% year-on-year to P1.5 billion during the first hals as more retail stores were allowed to restart operations, coupled with much-improved foot traffic in its various mall properties across the country. 

The company said its Megaworld Hotels & Resorts, which currently operates 11 hotel properties with around 4,000 room keys in Metro Manila, Cebu, Boracay, Tagaytay, and Iloilo, posted 49% year-on-year growth in its hotel revenues to P1.1-billion “due to the consistent performance of its in-city hotels and the increase in leisure-related activities.”

“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, ” said Tan.

To date, Megaworld has 28 master-planned integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country. — Ted Cordero/BM, GMA News