Megaworld profit rises to P3 billion

MANILA, Philippines - Megaworld Corp., the flagship real estate unit of tycoon Andrew Tan, reported a net income of P3 billion in the first nine months of the year, up five percent from   P2.86 billion in the same period a year ago on higher interest and rental income.

In a financial report submitted to securities regulators, Megaworld said consolidated revenues slightly went up 3.5 percent to P12.92 billion, with real estate sales accounting for 70.4 percent or P9.09 billion. 

Sales mostly came from Belagio, Forbes Park Lane 1 & 2 and Eight Forbes Town in Fort Bonifacio; Eastwood Le Grand in Eastwood City; McKinley Hill Tuscany, Stamford and Morgan Suites in Taguig City; Manhattan Parkview in Quezon City; and Newport City in Pasay; City Place in Binondo, Manila; and One Central, Greenbelt Chancellor and Excelsior in Makati City.

Rental income from its BPO office and retail developments reached a record P1.42 bilion or 10.97 percent of total consolidated revenues, registering a 41.43 percent increase from the previous year.  

The growth was due to escalation and the completion of additional leasing property.

But the group’s hotel operations chipped in P153 million in revenues, down 14.9 percent from P180 million.

Cost and expenses went up 3.09 percent to P9.92 billion from P9.62 billion, largely due to aggressive marketing activities as well as an increase in other administrative and corporate overhead expenses.

“Our results in the first nine months of the year clearly show that our strategies have succeeded in this challenging global business landscape. We are looking at another record breaking year with better financial results over last year,” said Megaworld first vice-president and treasurer Francis Canuto.

Megaworld maintained a net cash position as of end-September this year, with cash and cash equivalents at P16.07 billion from P12.33 billion as of end-December last year.

“Megaworld continues to be financially disciplined and strengthened its balance sheet in the first nine months of the year to better capitalize itself and be ready to seize possible growth opportunities going forward,” Canuto said.

Megaworld currently has five townships within Metro Manila as well as stand-alone projects in the Makati central business district.

It has recently entered into a joint-venture agreement with the Bases Conversion Development Authority for the development of an 8.38-hectare property in the northern portion of Fort Bonifacio. The company has committed to invest at least P15.6 billion over the next 20 years to develop this property.