Megaworld profit up as revenues rise by 17%

By VG Cabuag | Business Mirror
March 02, 2023

Property developer Megaworld Corp. on Wednesday said it posted a net income of P15.4 billion last year, up 7 percent from P14.4 billion in the previous year, as all of its business segments registered double-digit revenue growth.

Revenues grew at a faster rate of 17 percent to P59.52 billion from the previous year’s P50.75 billion.

Residential sales rose 18 percent to P36.84 billion from the previous P31.12 billion, with a 34 percent growth during the last quarter of the year.

Residential pre-sales surged by 49 percent to almost P119 billion in 2022, exceeding the company’s target of P110 billion.

Residential projects in Boracay Newcoast in Boracay Island; Paragua Coastown in San Vicente, Palawan; Mactan Newtown in Cebu; Upper East in Bacolod; Capital Town in San Fernando, Pampanga; and Maple Grove in General Trias, Cavite comprise the biggest chunk of pre-sales performance during the year.

“We have exceeded our targets across all business segments last year and we remain optimistic that we can hit or even exceed our pre-pandemic numbers this year,” Kevin Andrew L. Tan, the company’s EVP and chief strategy officer said.

“Certainly, we will be launching more townships this year as we look forward to expanding our offerings to more cities across the Philippines.”

Megaworld’s offices maintained its growth momentum as it generated P12.2 billion in rental income during the year, marking an 11 percent increase from the P11.1 billion in the previous year. The robust performance came from the growing transactions from both traditional and BPO (business process outsourcing) tenants, as well as emerging businesses.

Megaworld’s shopping malls posted a revenue growth of 51 percent to P3.4 billion, mainly driven by increased spending and higher foot traffic as the malls resumed normal operations almost all throughout the year. New tenant concepts have been a major highlight of 2022 especially for Uptown Mall and McKinley Hill.

During the year, the company also closed deals with Landers Superstore, particularly the launch of the first Landers Superstore in Western Visayas inside Upper East township in Bacolod City.

Megaworld Hotels and Resorts, meanwhile, posted a milestone growth of 35 percent as revenues rose to P2.6 billion in 2022, up by 36 percent from the previous year’s P1.9 billion and exceeding its pre-pandemic hotel revenues of P2.5 billion recorded in 2019.

This was largely driven by the sustained performance of in-city hotels and the pick-up in meetings, incentives, conferences and exhibitions activities as well as an increase in food and beverage revenues. The company’s Twin Lakes Hotel in Tagaytay was the best performing hotel property in the portfolio during the year.