Megaworld Expands Amid COVID-19

Megaworld continues their expansion despite a huge drop in revenues earlier this year amid the coronavirus disease 2019 (COVID-19) pandemic.

According to recent numbers published by Megaworld, the company has posted a 34% drop during the first half of the year.

“From P8.9-billion to P5.9-billion. Consolidated revenues for the first six months declined by 25% year-on-year to P23.8-billion from P31.7-billion last year,” said Megaworld.

In the second quarter of 2020, the company also suffered a 56% decline in net profit or P2.1-billion compared to the P4.8-billion during the same period last year,

“Just as the pandemic began in the last month of the first quarter, we already anticipated a decline in our earnings in the second quarter, but what actually surprised us was the fact that the drop wasn’t as bad as we have expected it to be, and it remains manageable. Our strategic decision of further strengthening our office leasing business Way, before the pandemic started, is now evidently making us more resilient,” says Kevin L. Tan, Megaworld’s Chief Strategy Officer.

Even as the lockdown limited selling activities for residential projects, Megaworld’s reservation sales during the first half of the year reached P38-billion, which peaked during the second quarter when most parts of the country were placed under Enhanced Community Quarantine.

Real estate sales during the first six months reached P14.3-billion, reflecting a 29% decline from P20.2-billion during the same period last year, as the company implemented ‘more flexibility’ in payment terms during the quarantine period.

Despite the losses earlier this year, Megaworld continues the construction of five new office developments in its various townships, particularly in Iloilo Business Park in Iloilo City, Arcovia City in Pasig City, Westside City in Parañaque City, McKinley West and Uptown Bonifacio in Taguig City.

Megaworld expects to complete 70 office developments covering 1.4 million square meters of leasable office inventory. (ASC)