Increase in Profit Growth for Megaworld Corp. during the First Semester of 2023
Andrew Tan’s Megaworld Corp. experienced an accelerated growth in profit during the first half of 2023, driven by a surge in mall revenues and robust residential sales. The company reported a 34 percent increase in net income, reaching P7.9 billion, while total revenues reached P32 billion, a 17 percent increase compared to the same period in 2022.
According to Kevin Tan, Megaworld’s Chief Strategy Officer, the company’s strategic land banking and positioning in areas outside Metro Manila, where there is an increasing demand for residential and commercial properties, have contributed to its growth.
Key drivers of this growth were real estate sales, which saw a 12 percent increase to P19.1 billion, and mall revenues, which soared by 71 percent to P2.5 billion. Megaworld attributed the strong growth to increased spending and higher rents as the company began collecting full rents this year.
Reservation sales, an indicator of future revenues, also saw a significant increase of 49 percent to P76.1 billion, accounting for nearly 60 percent of its full-year target of P130 billion. Megaworld launched P28.2 billion worth of projects during the first six months of the year.
The company’s office rentals experienced modest growth of 4 percent to P6.3 billion, mainly due to the contributions of business process outsourcing firms. Megaworld’s hotels and resorts segment also booked a revenue growth of 58 percent to P1.7 billion during the first semester.
“We have also worked doubly hard to come up with new, innovative, and sustainable product offerings in order to strengthen our leadership as a pioneering real estate company,” added Kevin Tan.
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