Megaworld Sustains Growth Momentum as 1H Profit Soars 26% To P6.7B

Megaworld, the Philippines’ biggest developer of integrated urban townships, achieved a net income of P6.7 billion during the first half of 2022, 26% higher than the P5.4 billion registered during the same period last year. Attributable net income also recorded an 18% increase to P5.9 billion in the first half of this year from P5.0 billion during the first six months of 2021.

Consolidated revenues for the first half of 2022 reached P27.5 billion, 23% higher from P22.4 billion during the same period the previous year.

The company’s core business all registered double-digit growth during the period, led by residential sales, mall and office rentals, and hotel operations.

“For the first time since the pandemic, we have achieved double-digit growth across all business segments. This is a clear indication that we are on the right track in our goal to finally go back to the pre-pandemic levels of our core businesses,” says Kevin L. Tan, chief strategy officer, Megaworld.

Megaworld’s stellar performance in its residential segment remained to be the primary contributor to the sharp growth in the first half of earnings as its real estate sales soared 26% to P17.0 billion in the first six months of the year compared to P13.5 billion during the same period last year. From January to June, the company has already injected approximately P21 billion worth of additional inventory into the market and has generated around P51 billion in reservation sales, reflecting a 38% increase from year-ago level.

The company’s surging rental income also continued to drive Megaworld’s earnings for the period by growing 19% to P7.5 billion during the first six months of the year compared to P6.3 billion during the same period last year.

Rental income from Megaworld Premier Offices sustained its strong momentum in the second quarter, bringing its first half tally to P6.0 billion, reflecting a 15% improvement from last year. The BPO sector continued to grow in spite of the pandemic, enabling Megaworld Premier Offices to maintain a higher than industry occupancy rate of 91%.

Meanwhile, Megaworld Lifestyle Malls registered improved performance as more retail partners were allowed to restart operations, coupled with much-improved foot traffic in its various mall properties across the country. Rental income from lifestyle malls grew 41% year-on-year to P1.5 billion during the first two quarters.

Likewise, Megaworld Hotels & Resorts, which currently operates 11 hotel properties with around 4,000 room keys in Metro Manila, Cebu, Boracay, Tagaytay, and Iloilo, posted 49% year-on-year growth in its hotel revenues to P1.1-billion. This was due to the consistent performance of its in-city hotels and the increase in leisure-related activities.

“We remain focused on our goals of expansion, with a slew of projects in our various townships that commit to our mission of nation-building. As the economy continues to recover, Megaworld maintains its positive outlook for the future as we build on the company’s consistent performance with an aim to go beyond our targets for the rest of year, ” adds Tan.