Megaworld Q1 earnings up 30% to P3.1 billion

MANILA, Philippines — Integrated property developer Megaworld reported a 30 percent growth in net income to P3.1 billion in the first quarter from only P2.4 billion last year.

This was on the back of a 29 percent rise in consolidated revenues to P13.1 billion as the company’s business segments posted double digit improvements.

Kevin Tan, chief strategy officer of Megaworld, said it was a strong start for the company that could be sustained for the coming months.

“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,” Tan said.

Real estate sales alone grew by 36 percent to P8.1 billion as construction activities normalized. Reservation sales also increased by 12 percent to P23.2 billion.

Megaworld Premier Offices, which hit a record high in rental income in 2021, continued its momentum as it registered P3 billion during the first quarter. This was 16 percent higher than the P2.6 billion reported in the same period last year.

Megaworld Lifestyle Malls, which operates 20 lifestyle malls, also showed a tremendous improvement with rental income growing by 40 percent to P717.1 million on the back of improving foot traffic and the increase in retail locators that have restarted their operations.

Megaworld Hotels & Resorts, which operates 11 hotel properties across the country, likewise recovered, posting a 50 percent growth in revenue to P502.9 million.

“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,” Tan said.

This developed as Emperador Inc., another company owned by tycoon Andrew Tan, announced it was raising its capital expenditure budget this year to P3 billion from P1.74 billion in 2021 as it further expands its global footprint in various international markets.

“Most of the capex budget will be spent outside the Philippines, bulk of which will be on the whisky business” said Emperador president Winston Co.

Emperador’s brandy and whisky products are available in more than 100 countries across six continents.