Megaworld posts record P4-billion profit

MANILA, Philippines - Property developer Megaworld Corp. said its net earnings rose 36 percent in the first nine months of the year to a record P4.08 billion, mainly driven by robust residential sales and office lease income.

In a statement, Megaworld said its consolidated revenues grew 22 percent to P15.75 billion with rental income from its business process outsourcing (BPO) office and retail projects, surging 39 percent to P1.97 billion.

It ended the nine-month period with a strong net cash position, amounting to P21.15 billion.

Bullish about the prospects of the real estate industry and the economy, Megaworld chairman and chief executive officer Andrew Tan said he expects the company to post all-time highs in terms of income and revenues this year. “We believe this is just the beginning. Our capital base has grown to more than P55 billion, thanks to the support of our shareholders all these years,” said Tan.

“With this strong capital base, we can continue to pursue our goals even as we enhance our operating efficiency and profitability further. We do not see the need for any rights offering to raise our capital in the next few years. We will continue to be prudent in making the best use of our capital to sustain our growth,” he added.

Megaworld first vice president Francis Canuto, meanwhile, attributed the company’s strong residential sales to the popularity of its live-work- play-learn communities in Metro Manila, namely Eastwood City, McKinley Hill, Newport City, Manhattan Garden City and McKinley West, as well as the group’s proven track record of delivering more than 200 buildings to its customers over the last two decades.

Megaworld, one of the leaders in office development, expects to end the year with a total of 385,000 square meters of office space in its portfolio.