Megaworld profit down 33% in Q1

MANILA, Philippines — Andrew Tan-led Megaworld posted a net income of P2.4 billion in the first quarter, down 33 percent as it continues to feel the impact of the global pandemic.

“Consolidated revenues reached P10.1 billion, but netting out the impact of interest and other income, the company’s core revenues registered at P9.3 billion. This reflects a quarter-on-quarter growth of 10 percent due to improvements in the performance of the company’s real estate sales, as well as revenues from Megaworld Lifestyle Malls and Megaworld Hotels,” Megaworld said.

Megaworld chief strategy officer Kevin L. Tan said this marks the third consecutive quarter of improvement in the company’s core revenues since the second quarter of 2020.

“Gradually, we already see improvements in the numbers, which is a reflection of the recovery in most of our core businesses. With the eased restrictions and the increasing number of Filipinos getting vaccinated, we see better quarters ahead,” Tan said.

In terms of sales, Megaworld generated P5.9 billion in real estate sales which were down 39 percent year-on-year, but up two percent from the previous quarter due to increased construction activities.

Rental revenue decreased by 27 percent to P3.1 billion as rentals from Megaworld Lifestyle Malls slightly increased by two percent quarter-on-quarter as a result of the company’s digital transformation and innovations for al fresco dining.

Hotel revenues also declined 39 percent to P335 million due to travel restrictions, but up seven percent, quarter on quarter, boosted by bookings from in-city hotels.

But the office business remained stable and strong.

“For the first quarter alone, we have already renewed more than 40 percent of our expiring leases for the year,” Tan said.

To date, Megaworld has 26 masterplanned integrated urban townships in different parts of the country.