MEGAWORLD Corp. recorded an 11% rise in earnings in the third quarter, as it sustained growth across its business segments.
In a regulatory filing, the listed property developer led by tycoon Andrew L. Tan said its attributable net income reached P4.49 billion in the July to September period, driven by a 15% increase in consolidated revenues to P16.4 billion. Expenses, on the other hand, grew 15% to P11.58 billion.
By business segment, real estate sales accounted for the biggest chunk of revenues at P10.56 billion, up 11% year-on-year. Rental income during the third quarter grew by 16% to P4.26 billion.
Hotel operations saw the biggest growth in revenues during the period, posting an 86% surge to P587.28 million, as the company increased room capacity across its hotel brands which include Belmont and Savoy.
Equity in net earnings of associates declined 86% to P18.7 million as interest and other income climbed 20% to P969.84 million.
For the nine months ending September, Megaworld’s attributable net income went up 14% to P12.8 billion, as revenues rose 17% to P48.12 billion. Expenses increased by 17% to P34.43 billion.
The bulk or 64% of revenues came from sale of condominium units, condotels and residential and commercial lots totalling P30.72 billion, up 12%. Leasing revenues jumped 19% to P12.41 billion, while hotel operations soared 82% to P1.87 billion.
“Megaworld’s consistent growth across all business segments is a clear indicator of where the company is going, and we are very optimistic to finish the year strong,” Megaworld Chief Strategy Officer Kevin L. Tan was quoted as saying in a statement yesterday.
He said the rental business is expected to remain a key driver of growth for Megaworld, and in the long term, the hotel business will transform to become a major revenue contributor too.
“With over 3,500 hotel room keys, Megaworld is not just making its presence felt, but more notably, complementing the government’s thrust to attract 12 million international tourists by 2022,” Mr. Tan said.
Megaworld ended the nine-month period with 25 master-planned townships and integrated lifestyle communities in its portfolio, some of which are Eastwood City, Newport City, McKinley Hill, Uptown Bonifacio, Forbes Town, Iloilo Business Park, The Hamptons Caliraya and Westside City in the Entertainment City.
Shares in Megaworld at the stock exchange added 0.04 points or 0.82% to P4.89 each on Wednesday. — Denise A. Valdez
