MEGAWORLD Corp.’s attributable profit jumped 15% to P4.5 billion in the April to June period of 2019, driven by the growth of its residential, commercial, and hotel businesses.
The property firm of tycoon Andrew L. Tan said Wednesday that the second quarter’s net income attributable to the parent was higher than the P3.9 billion booked in the same period a year ago. This followed a 20% surge in consolidated revenues to P16.8 billion.
On a six-month basis, Megaworld’s attributable profit was up by 16% to P8.3 billion, while consolidated revenues climbed 18% to P31.7 billion.
The residential business, which generated about 63% of total revenues for the semester, booked P20.2 billion in sales, 11% higher than the P18.1 billion seen in the same period last year.
The listed firm benefited from the launch of P39 billion worth of new inventory in the first half. Sales reservations stood at P80 billion.
“Interest rates are on a downtrend, which is a very positive news for our residential business,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said in a statement.
For the rental business, leasing revenues grew by a fifth or 20% to P8.1 billion following the continued expansion of its malls. The company looks to complete over 230,000 square meters (sq.m.) of leasable spaces from its office and mall units by yearend.
“Vacancies in both office and commercial segments are on an all-time low, and we don’t see this changing in the near future due to the robust sign-ups we are seeing from big companies and business owners,” Mr. Tan said.
Megaworld remains bullish on the mall business, as it recently announced the opening of eight new malls and commercial centers in the provinces in the next three years. The company is spending P10 billion for the expansion that will add about 200,000 sq.m worth of retail inventory until 2022.
Meanwhile, the Megaworld Hotels brand saw an 80% increase in revenues to P1.3 billion, from P715 million in the same period in 2018. It will add another 1,000 rooms with the opening of Belmont Hotel Boracay and Savoy Hotel Mactan Newtown before the year ends.
The company currently operates eight hotels in the country, namely Richmonde Hotel Ortigas, Eastwood Richmonde Hotel, Richmonde Hotel, Savoy Hotel Manila, Savoy Hotel Boracay, Belmont Hotel Manila, Hotel Lucky Chinatown, and Twin Lakes Hotel.
Megaworld is banking on the growth of the tourism industry to boost hotel operations moving forward.
Shares in Megaworld climbed 2.17% or 13 centavos to close at P6.11 each at the stock exchange on Wednesday. — Arra B. Francia