Megaworld Q2 earnings up 39%

MANILA, Philippines — Megaworld Corp. grew its net income to P2.6 billion in the second quarter, up 39 percent from P1.9 billion a year ago.

Officials attributed the steady recovery to the strong office leasing business and the improved performance of its retail and hospitality businesses.

Megaworld chief strategy officer Kevin Tan said the company’s business has been steadily recovering.

“We attribute the steady recovery of our businesses to our ability to identify opportunities amidst the pandemic, as we continue to focus our efforts to create products and services that meet the evolving needs of our customers,” Tan said.

However, Tan said the business environment remains uncertain.

“While everything remains uncertain as far as the impact of the Delta variant will affect business in the coming months, we remain hopeful that the increasing number of vaccinated Filipinos will help sustain consumer confidence henceforth,” Tan said.

From January to June, the company’s net income was down seven percent to P5 billion.

Quarterly core revenues grew 20 percent to P11.2 billion, highlighted by the recovery of all its business segments.

The company’s rental income increased by four percent to P3.2 billion quarter-on-quarter, with Megaworld Lifestyle Malls growing its rental income by five percent to P537 million.

Megaworld Premier Offices registered a four percent increase in its rental income, quarter-on-quarter to P2.7-billion while Megaworld Hotels & Resorts, posted a 16 percent growth in its hotel revenues to P389 million.

Real estate sales grew 29 percent to P7.6 billion.

On the other hand, first half rental revenues decreased by 13 percent to P6.3 billion while real estate sales fell five percent to P13.5 billion.

Hotel revenues declined by 21 percent year-on-year to P724 million from P918 million as travel restrictions remained in place.