Megaworld Corporation, the country’s top developer of integrated townships, surpassed its quarterly performance during the pre-pandemic levels for the first time as net income rose 30 percent to P4.6 billion in the first quarter of this year.
In a disclosure to the Philippine Stock Exchange, the firm said first quarter profit improved over last year’s P3.5 billion as all its core businesses registered strong topline growth.
Consolidated revenues grew by 24 percent to P16.2 billion. The company’s performance in the first quarter of 2023 marks its full recovery from its pre-pandemic performance.
Consolidated revenues and net income are already 9 percent and 11 percent higher, respectively, compared to the first quarter of 2019.
Likewise, attributable net income stood at P4.1 billion and grew by 33 percent compared to the same period last year.
“We start the year strong as we continue sustaining the recovery momentum of our businesses and finally grow past our pre-pandemic performance for the first time since the pandemic began in 2020,” said Megaworld Chief Strategy Officer Kevin L. Tan.
He added that, “This affirms our position in the industry and ability to quickly adapt in this new environment and capture opportunities.”
Real estate sales for the quarter grew by 17 percent year-on-year to P9.4 billion, driven by the higher completion rate of its projects.
Similarly, residential pre-sales surged by 71 percent to P39.6 billion in the first quarter of 2023 and already accounts for 30 percent of the company’s year-end pre-sales target of P130 billion.
Megaworld said it saw renewed demand in Metro Manila during the quarter especially in its projects in McKinley West and Uptown Bonifacio, Taguig City.
Leasing revenues, on the other hand, grew by 18 percent to P4.4 billion with the growth led by the performance of the mall segment.
Megaworld Premier Offices posted P3.1 billion in rental income during the period, marking a firm 5 percent increase from the P3.0 billion last year.
This resulted from the growing transactions from both traditional and BPO tenants, as well as emerging businesses.
Megaworld Lifestyle Malls saw revenues jump by 73 percent in the first quarter to P1.2 billion. This was mainly driven by increased spending and higher rents as the company started to collect full rents beginning January 1, 2023.
Megaworld Hotels and Resorts saw revenues soar by 62 percent to P813 million in the first quarter of 2023, compared to P503 million in the same period last year.
This was largely driven by the continued growth of in-city hotels, MICE activities, as well as the strong growth in Food & Beverage (F&B) revenues.
“As we move forward, we are now focused on sustaining our strong growth and look to close the year with a record performance for Megaworld,” said Tan.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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