Megaworld Surpasses Pre-Pandemic Levels, Posts P4.6B Net Income in Q1 2023

Megaworld, the pioneer developer of integrated townships in the Philippines, reported a net income of P4.6 billion in the first quarter of 2023, surpassing its pre-pandemic performance for the first time. This figure represents a 30% increase from P3.5 billion during the same period last year, with all core businesses registering strong topline growth. Consolidated revenues grew by 24% to P16.2 billion, marking Megaworld’s full recovery from the pandemic’s impact. In comparison to the first quarter of 2019, consolidated revenues and net income are already 9% and 11% higher, respectively.

Megaworld’s net income attributable to the parent company’s shareholders stood at P4.1 billion, up 33% from the same period last year. Kevin L. Tan, the company’s Chief Strategy Officer, attributed the strong performance to the company’s ability to adapt quickly to the new environment and capture opportunities.

Real estate sales for the quarter grew by 17% year-on-year to P9.4 billion, driven by the higher completion rate of its projects. Residential pre-sales surged by 71% to P39.6 billion in 1Q23, accounting for 30% of the company’s year-end pre-sales target of P130 billion. The company experienced renewed demand in Metro Manila during the quarter, especially in its projects in McKinley West and Uptown Bonifacio, Taguig City.

Leasing revenues grew by 18% to P4.4 billion, with the mall segment leading the growth. Megaworld Premier Offices recorded P3.1 billion in rental income during the period, a 5% increase from last year, driven by growing transactions from traditional and BPO tenants, as well as emerging businesses.

Megaworld Lifestyle Malls saw revenues jump by 73% in the first quarter, amounting to P1.2 billion, mainly driven by increased spending and higher rents as the company started to collect full rents beginning January 1, 2023. Megaworld Hotels & Resorts experienced a 62% increase in revenues, totaling P813 million in the first quarter of 2023, compared to P503 million in the same period last year, largely driven by the continued growth of in-city hotels, MICE activities, and strong growth in Food & Beverage revenues.

Megaworld currently has 30 master-planned integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country, including Eastwood City in Libis, Quezon City, Newport City in Pasay City, McKinley Hill, McKinley West, Uptown Bonifacio, and Forbes Town, all in Fort Bonifacio, Taguig City, among others. The company aims to sustain its strong growth and achieve a record performance for the year.