Megaworld sustains growth momentum as 1H profit soars 26% to P6.7B
Residential, lifestyle mall, office, and hotel businesses register double digit growth during the first 6 months of 2022
Megaworld, the Philippines’ biggest developer of integrated urban townships, achieved a net income of P6.7 billion during the first half of 2022, 26% higher than the P5.4 billion registered during the same period last year. Attributable net income also recorded an 18% increase to P5.9 billion in the first half of this year from P5.0 billion during the first six months of 2021.
Consolidated revenues for the first half of 2022 reached P27.5 billion, 23% higher from P22.4 billion during the same period the previous year.
The company’s core business all registered double digit growth during the period, led by residential sales, mall and office rentals, and hotel operations.
“For the first time since the pandemic, we have achieved double digit growth across all business segments. This is a clear indication that we are on the right track in our goal to finally go back to the pre-pandemic levels of our core businesses,” says Kevin L. Tan, chief strategy officer, Megaworld.
Megaworld’s stellar performance in its residential segment remained to be the primary contributor to the sharp growth in the first half earnings as its real estate sales soared 26% to P17.0 billion in the first six months of the year compared to P13.5 billion during the same period last year. From January to June, the company has already injected approximately P21 billion worth of additional inventory into the market and has generated around P51 billion in reservation sales, reflecting a 38% increase from year-ago level.
The company’s surging rental income also continued to drive Megaworld’s earnings for the period by growing 19% to P7.5 billion during the first six months of the year compared to P6.3 billion during the same period last year.
Rental income from Megaworld Premier Offices sustained its strong momentum in the second quarter, bringing its first half tally to P6.0 billion, reflecting a 15% improvement from last year. The BPO sector continued to grow in spite of the pandemic, enabling Megaworld Premier Offices to maintain a higher than industry occupancy rate of 91%.
Meanwhile, Megaworld Lifestyle Malls registered improved performance as more retail partners were allowed to restart operations, coupled with much-improved foot traffic in its various mall properties across the country. Rental income from lifestyle malls grew 41% year-on-year to P1.5 billion during the first two quarters.
Likewise, Megaworld Hotels & Resorts, which currently operates 11 hotel properties with around 4,000 room keys in Metro Manila, Cebu, Boracay, Tagaytay, and Iloilo, posted 49% year-on-year growth in its hotel revenues to P1.1-billion. This was due to the consistent performance of its in-city hotels and the increase in leisure-related activities.
“We remain focused on our goals of expansion, with a slew of projects in our various townships that commit to our mission of nation-building. As the economy continues to recover, Megaworld maintains its positive outlook for the future as we build on the company’s consistent performance with an aim to go beyond our targets for the rest of year, ” adds Tan.
To date, Megaworld has 28 master-planned integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country, namely: Eastwood City in Libis, Quezon City, (18.5 hectares); Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town (5 hectares), all in Fort Bonifacio, Taguig City; Lucky Chinatown in Binondo, Manila (3 hectares); The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares); Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in Alfonso, Batangas near Tagaytay (1,300 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Biñan, Laguna and Carmona, Cavite (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in Las Piñas City (62 hectares); Eastland Heights in Antipolo, Rizal (640 hectares); Suntrust Ecotown in Tanza, Cavite (350 hectares); Maple Grove in General Trias, Cavite (140 hectares); The Hamptons Caliraya in Lumban-Cavinti, Laguna (300 hectares); The Upper East (34 hectares) in Bacolod City; Northill Gateway (50 hectares) in the boundaries of Bacolod City and Talisay City in Negros Occidental; Capital Town Pampanga beside the Pampanga Provincial Capitol in the City of San Fernando (35.6-hectares); Westside City in the Entertainment City in Paranaque City (31 hectares); Empire East Highland City in Cainta, Rizal (24 hectares); Arden Botanical Estate in the boundaries of Trece Martires and Tanza, Cavite (251 hectares); Paragua Coastown in San Vicente, Palawan (462 hectares); and Northwin Global City in Marilao and Bocaue, Bulacan (85 hectares).
This press release contains certain “forward-looking statements”. These forward-looking statements can generally be identified by use of statements that include words or phrases such as Megaworld Corporation (Megaworld) or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “foresees”, and other words or phrases of similar import. Similarly, statements that describe Megaworld’s objectives, plans, and goals are also forward-looking statements. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Nothing in this press release is or should be relied upon as a promise or representation as to the future. The forward-looking statements included herein are made only as of the date of this press release, and Megaworld undertakes no obligation to update such forward-looking statements publicly to reflect subsequent events or circumstances. The delivery of this press release shall not, under any circumstance, create any implication that the information contained or referred to in this press release is accurate as of any time subsequentto the date hereof.