Megaworld earnings rise 18% to P8.9 B in 6 months
Megaworld Corp., the flagship property development firm of tycoon Andrew Tan, saw its earnings rise by nearly a fifth in the first half driven by a collective growth in its core businesses.
Megaworld reported a first half net income of P8.9 billion, an 18 percent increase from P7.5 billion in the same period last year.
Net income attributable to parent company, on the other hand, jumped by 16 percent to P8.3-billion from P7.2 billion in the same period last year.
Megaworld said its robust earnings in the first semester was fueled by a collective growth of 16 percent in its core businesses, in which each segment posted double-digit growth.
Consolidated revenues of the company increased 18 percent year-on-year to P31.7 billion, with its residential, rental, and hotel operations accounting for 63 percent, 26 percent, and four percent of total revenues, respectively.
Megaworld chief strategy officer Kevin Tan said the current economic landscape remains favorable which is why the company continues to be optimistic on the remaining months of the year.
“Interest rates are on a downtrend, which is a very positive news for our residential business. Vacancies in both office and commercial segments are at an all-time low, and we don’t see this changing in the near future due to the robust sign-ups we are seeing from big companies and business owners,” he said.
“Tourism growth, likewise, remains strong, and this should continue to fuel our blossoming hotel operations especially that we are opening more hotels henceforth,” Tan said.
Megaworld finished the first half with residential sales of P20.2-billion and leasing revenues of P8.1 billion.
By yearend, the company is expected to complete more than 230,000 square meters of leasable space from two rental brands of Megaworld Premier Offices and Megaworld Lifestyle Malls all over the country.
It is also expanding Megaworld Lifestyle Malls’ footprint outside of Metro Manila with the opening of eight new malls and commercial centers in key regional centers in the next three years.