MEGAWORLD INCOME DOWN 8% IN Q1

LISTED Megaworld Corp. saw its net income decline to P3.8 billion in the first quarter of 2020, which it attributed to the impact of the coronavirus pandemic on its business.

In a disclosure on Monday, the Andrew Tan-led property developer said the amount was an 8-percent decline from P4.1 billion in the same period last year.

Consolidated revenues inched up by 1 percent to P15.1 billion in the first three months from P14.9 billion year-on-year.

Revenues from its rental business rose by 8 percent to P4.2 billion in January to March from P3.9 billion last year, driven by office leases as the pandemic weakened mall rentals in the period.

Residential sales improved by 1 percent to P9.6 billion from P9.5 billion a year earlier as the Taal Volcano eruption on January 12 affected the sales of its projects in Region 4A (Cavite, Laguna, Batangas, Rizal and Quezon provinces, or Calabarzon).

The quarantine measures imposed by the government to curb the spread of Covid-19 also resulted in delays in the implemention of projects as supply chains were hampered.

“Our real estate sales still helped mitigate the impact of the challenges we faced during the quarter. Our office portfolio, which remains very attractive to locators because they are mostly PEZA (Philippine Economic Zone authority) accredited, provided a buffer against the expected weakness of our mall and hotel operations,” Megaworld Chief Strategy Officer Kevin Tan said in the disclosure.

Hotel revenues dipped by 4 percent to P551 million from P574 million year-onyear because of reduced check-ins caused by the pandemic.

Megaworld looks to boost its e-commerce facilities to speed up the recovery of its commercial and hotel businesses.

The firm is set to roll out soon digital platforms aimed at enhancing their customers’ experience under the “new normal.”

“Our e-commerce platforms will give our customers the convenience and comfort that they need as we take their safety and well being to a whole new level. We will also do the same for our mall customers, which will also greatly help our retail tenants,” Tan said.

The company also reduced its capital expenditures for this year to P36 billion from P60 billion.

Megaworld shares dropped by 12 centavos or 3.99 percent to finish at P2.89 apiece on Monday.