Core businesses register double-digit growth
Megaworld, the country’s pioneer developer of integrated urban townships, reported a 41% growth in its net income to P3.5-billion for the first quarter this year from P2.5-billion during the same period last year as the business environment continued to improve. Net income attributable to the parent company, likewise, increased by 30% year-on-year to P3.1-billion during the quarter compared to last year’s P2.4-billion.
Consolidated revenues reached P13.1-billion, growing by 29% from P10.2-billion recorded the previous year as the company’s business segments posted double digit improvements.
“This is definitely a strong start for us, and affirms that our improved performance can be sustained. While there was some concern last January due to the omicron variant, consumer confidence remained on the uptrend and our quick recovery showed that we are now in a better position to manage the pandemic and move forward,” says Kevin L. Tan, chief strategy officer, Megaworld.
Real estate sales for the quarter grew by 36% year-on-year to P8.1-billion as construction activities normalized. Reservation sales also increased by 12% to P23.2-billion compared to P20.7-billion reported a year ago.
Meanwhile, Megaworld Premier Offices, which hit a record high in rental income in 2021, continued its momentum as it registered P3.0-billion in rental income for the first three months of the year, up by 16% as compared to P2.6-billion it netted for the same period last year. The company’s occupancy rate also improved to 91% even as the industry average remained at the 82-83% level.
Megaworld Lifestyle Malls, which operates 20 lifestyle malls, also showed a tremendous improvement in its performance, with rental income for the first three months of 2022 growing by 40% year-on-year to P717.1-million on the back of improving foot traffic and the increase in retail locators that have restarted their operations.
Likewise, Megaworld Hotels & Resorts, which operates 11 hotel properties across the country, posted a 50% growth in revenues to P502.9-million, as it benefitted from the uptick in leisure-related activities and expansion in domestic travel. The company also noted that Meetings, Incentives, Conferences, Exhibitions (MICE) activities have also started to pick up in the middle of the quarter.
“We are now focused on returning to our pre-pandemic performance and to grow beyond that. In fact, we are now looking at opportunities to further expand our geographical footprint in the country this year with the launch of several new townships,” adds Tan.
