Megaworld profit grows 11% in Q1

Andrew Tan-led Megaworld Corp. grew its net income 11 percent to P2.9 billion in the first quarter of the year.

Officials said the growth in profit was due to strong rental income and consistent residential revenues.

Consolidated revenues, which include subsidiary brands Global-Estate Resorts, Empire East Land Holdings and Suntrust Properties, amounted to P12 billion, up five percent.

The residential business, comprising condominiums and villages, remained steady and continued to contribute around 70 percent of the company’s revenue pie.

On the other hand, rental income expanded 26 percent to P2.9 billion.

Hotel revenues climbed 23 percent to P335 million as the company expanded its homegrown hotel brands, Richmonde and Belmont in Iloilo City and Pasay City, respectively.

Megaworld treasurer Francis Canuto said the company’s long-term goal is to strengthen the recurring income but at the same time maintain its leadership in residential developments.

“We already have a solid landbanking in place. All we have to do is to maximize the use of these lands to further expand our presence especially in key growth areas in the provinces,” Canuto said.

The company is targeting to launch 20 residential projects with total sales value of P31.2 billion.

These will be in Uptown Bonifacio, McKinley West and McKinley Hill, all in Fort Bonifacio; Iloilo Business Park in Mandurriao, Iloilo City; The Capital Town in the City of San Fernando, Pampanga; Maple Grove in General Trias, Cavite; Eastland Heights in Antipolo, Rizal; Boracay Newcoast in Boracay Island; Sta. Barbara Heights in Iloilo; and Twin Lakes near Tagaytay.