Megaworld net profit up 15% to P3.69 B in H1

MANILA, Philippines - Megaworld Corp., the property arm of tycoon Andrew Tan, said its first half core net income rose 15 percent to P3.69 billion, boosted by gains from the sale of equity and strong real estate sales and rental income.

In a disclosure to the Philippine Stock Exchange, Megaworld said it booked P1.95 billion in net gains due to the sale of its shares in parent firm Alliance Global Group Inc.

Consolidated revenues increased 12 percent to P15.43 billion. Rental income from Megaworld’s BPO office and retail developments grew 39 percent to P2.26 billion.

Francis Canuto, Megaworld senior vice-president, attributed the company’s strong residential sales and rental income to the strength of the company’s business model.

On top of that, Megaworld has a proven track record in the industry as it has delivered more than 230 buildings to its customers over the last two decades.

Megaworld said it remains in a strong net cash position, with cash and cash equivalents totaling P29.1 billion.

Megaworld, which pioneered the development of community townships that incorporate the live-work-play-learn concept, currently has 10 ongoing mega-projects within Metro Manila, Iloilo and Cebu, as well as several residential developments within the Makati central business district and San Juan.

The company was the first to develop an information technology park in the Philippines through Eastwood City which provides a 24/7 work environment to business process outsourcing companies servicing the global market.

The success of Eastwood City, home to a workforce that is 45,000-strong and growing, prompted Megaworld to expand its portfolio to McKinley Hill, now home to some of the biggest names in the BPO industry and with a workforce of about 35,000.

Megaworld is recognized as the leader in office development and is currently the largest BPO office landlord. By the end of 2012, the company expects to have around 500,000 square meters of office space in its portfolio.

With total assets of over P136 billion, the company is in a strong position to pursue its goals as it continues to enhance its operating efficiency and profitability.