Megaworld profit dips by 31% due to low sales in January-March

*_{File photo shows Megaworld Bonifacio Global City.}*

Megaworld Corp., the property development arm of businessman Andrew Tan, on Monday said its income in the first quarter dropped 31 percent to P2.4 billion from last year’s P3.5 billion as sales continued to decline.

Consolidated revenues fell 30 percent to P10.1 billion from last year’s P14.39 billion.

“Gradually, we already see improvements in the numbers, which is a reflection of the recovery in most of our core businesses. With the eased restrictions and the increasing number of Filipinos getting vaccinated, we see better quarters ahead,” Kevin Andrew L. Tan, the company’s executive vice president, said.

Real estate sales in the first quarter fell 39 percent to P5.9 billion, down 39 percent from last year’s P9.6 billion. The company said it saw an improvement in numbers compared with the previous quarter due to increased construction activities.

Reservation sales were flat at P20.7 billion from last year’s P20.5 billion.

Rental revenues, meanwhile, declined 27 percent to P3.1 billion from P4.2 billion last year.

Rentals from its shopping mall operations slightly increased by 2 percent quarter-on-quarter as a result of the company’s digital transformation and innovations for al fresco dining.

“Our office business remains to be very stable and strong. For the first quarter of the year alone, we have already renewed more than 40 percent of our expiring leases for the year,” Tan said.

Hotel revenues also declined 39 percent to P335 million from P551 million last year due to travel restrictions. Quarter-on-quarter, however, Megaworld Hotels posted a 7-percent increase in revenues, boosted by bookings from in-city hotels.

As of end-March, Megaworld recorded cash reserves amounting to P32.6 billion and a net debt-to-equity ratio of 27 percent, it said.

Article and Photo originally posted by Business Mirror last May 18, 2021 and written by VG Cabuag.