MEGAWORLD CORP. posted a net income of P2.2 billion in the third quarter, plummeting 54% from the P4.8-billion net income it reported last year, although it saw signs of an improving rental business on a quarterly basis.
“We are seeing a lot of optimism now as we have begun the recovery of our mall business, and our office leasing business continues its growth,” Megaworld Chief Strategy Officer Kevin L. Tan said in the statement.
In a statement on Wednesday, the property developer said it booked revenues of P9.5 billion in July to September, down 42% from the P16.4 billion it recorded the same period a year ago.
Real estate sales contributed P4.7 billion to revenues, lower by 56% from a year ago, but flat against the second quarter. It said it saw “remarkable growth” in reservation sales of its horizontal residential projects located in tourist estates in Boracay, Antipolo and Cavite.
Rental income, which accounts for leasing revenues from offices and lifestyle malls, added P3.4 billion, down 21% on a yearly basis but up 13% from the second quarter.
Office rental contributed P3 billion, up 6% from the last quarter, while mall revenues added P400 million, up 117% from the last quarter.
On a nine-month basis, Megaworld’s net income dropped 41% to P8.1 billion, as the continuing lockdown to contain the coronavirus outbreak is hitting its core businesses. Revenues were cut 31% to P33.3 billion.
Hotel revenues during the period slumped 38% to P1.2 billion. Revenues from office rental climbed 11% to P8.6 billion.
As the government issued new rules in the past month to relax restrictions on tourism and travel, Megaworld said it is hopeful to see a recovery in key sectors soon.
“The government’s recovery efforts especially in reopening the economy coupled with our recovery strategies have greatly helped our core businesses bounce back, and we continue to be optimistic of this uptrend as we strive to provide the right balance between safety, convenience, and an enjoyable experience in our townships all over the country,” Mr. Tan said.
Megaworld currently has 26 integrated townships, lifestyle communities and estates in its portfolio. It also operates 10 hotels under various brands.
Shares in Megaworld at the stock exchange closed at P3.63 each on Wednesday, up 18 centavos or 5.22% from the previous day. — Denise A. Valdez
