Megaworld earnings jump 17% in 2018

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Megaworld Highland City
Megaworld Corp. launched its 24th township called Highland City in Cainta, Rizal. -- COMPANY HANDOUT

MEGAWORLD Corp. grew its attributable profit by 17% in 2018, lifted by the double-digit expansion of its residential, office, mall, and hotel businesses.

The property company of tycoon Andrew L. Tan reported a net income attributable to the parent of P15.2 billion last year, higher than the P13 billion it posted in 2017. This came on the back of a 15% uptick in revenues to P57.4 billion, excluding a one-time gain of P113 million.

The residential segment contributed bulk of Megaworld’s revenues at P38 billion, 11.5% higher year on year. This was supported by the launch of 25 projects valued at about P106 billion, while also recording P135 billion in sales reservations for the period.

“For our residential properties, we continue to see strong take-up especially in our mature townships, and there is already a consistently growing interest in our newly-launched townships,” Megaworld Senior Vice-President and Chief Strategy Officer Kevin Andrew L. Tan said in a statement.

Megaworld’s rental business, composed of office and commercial leasing, improved its contribution to revenues by 21% to P14.3 billion. This accounted for 25% of the company’s topline.

The listed firm has been aggressively expanding its commercial projects, with the opening of the Festive Walk Mall in Iloilo Business Park, as well as the 25-storey Philippine Global Service Center. The latter is being developed for JPMorgan Chase Bank, which signed a long-term lease on the 70,000-square meter office.

“We have already secured multiple pre-lease deals for our office buildings as well that are in the pipeline until next year. Same goes to our mall and commercial spaces that are set to open in our various townships,” Mr. Tan said.

For the hotel business, revenues climbed 14% to P1.5 billion. It ended the year with seven hotels, following the opening of the 684-room Savoy Hotel Manila in Pasay City and the 126-room Twin Lakes Hotel in Batangas.

Megaworld recently launched its 24th township in the country called Highland City in Cainta, Rizal, which it will develop alongside subsidiary Empire East Land Holdings, Inc. The company will be spending P20 billion over the next 10 years for the township.

“Perhaps, as we build these townships, people saw the advantage of living where they work, and living where everything is just within reach. This model makes every aspect of our business viable and expandable, and we continue to spot for opportunities where we can further grow and innovate our offerings,” Mr. Tan said.

Megaworld is part of Alliance Global Group, Inc., whose core interests also include gaming, liquor, quick service restaurants, and infrastructure development. — Arra B. Francia