Core units boost profits of Megaworld in Jan-march

MEGAWORLD Corp., the property development arm of businessman Andrew Tan, said its net income grew 10 percent year-on-year in the first quarter.

The company said profits in the first three months of the year reached P5.02 billion, higher than the previous year’s P4.55 billion as its core businesses of real estate and shopping mall rentals performed well.

Revenues rose 16 percent to P18.87 billion from the previous year’s P16.23 billion.

Core revenues reached P17.89 billion, resulting from strong property sales and sustained growth in leasing and hotel income. The said figure is 22 percent higher than the P14.59 billion recorded last year.

“We started 2024 by consolidating our strength and forging stability for our core businesses as we look forward to many more opportunities for growth in the coming years. This year, we hope to finish 2024 with 35 townships to coincide with our 35 years in the Philippine real estate industry,” Kevin Andrew L. Tan, the company’s executive vice president, said.

Real estate sales surged by 29 percent to P12.11 billion from the previous year’s P9.4 billion, driven by strong bookings and unit sales, while leasing revenues grew 6 percent to P4.64 billion from last year’s P4.37 billion, the company said.

The company’s shopping mall revenues rose 20 percent to P1.5 billion, driven by higher tenant sales and improved occupancy of 93 percent.

Cash from its offices, however, came in flat at P3.2 billion.

The group’s hotel revenues rose 38 percent to P1.12 billion from P812.9 million last year.

This rise was buoyed by the growth of MICE (meetings, incentives, conventions, exhibitions) activities and local tourism especially in Boracay Newcoast, highlighted by the strong bookings of the Boracay Newcoast Convention Center during the period. The Boracay Newcoast Convention Center is considered to be the most modern and one of the biggest MICE facilities in Boracay Island today with a seating capacity of 1,200.

Interest and other income, meanwhile, was down by 39 percent to P981.82 million from the previous P1.63 billion.

To date, Megaworld has 31 masterplanned integrated urban townships.