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Megaworld’s profit up 36% on sales and rentals.
Megaworld Corporation, one of the leading real estate developers in the Philippines, has reported a 36% increase in its net income for the first quarter of 2021. The company’s profit rose to Php 3.7 billion ($77 million) from Php 2.7 billion ($56 million) in the same period last year.
The increase in profit was mainly driven by the strong sales and rental revenues of Megaworld’s residential and commercial properties. The company’s residential sales grew by 14% to Php 12.6 billion ($262 million), while its rental income increased by 5% to Php 4.3 billion ($89 million).
Megaworld’s Chairman and CEO, Andrew Tan, attributed the company’s strong performance to its diversified portfolio of properties, which includes residential, office, commercial, and hotel developments. He also noted that the company’s digital transformation initiatives have helped it adapt to the changing business landscape brought about by the COVID-19 pandemic.
“We have been investing heavily in digital technologies to enhance our customer experience and improve our operational efficiency. This has enabled us to continue serving our customers despite the challenges posed by the pandemic,” Tan said.
Megaworld’s residential sales were boosted by the strong demand for its projects in key growth areas such as Metro Manila, Cebu, and Iloilo. The company’s commercial and office leasing businesses, on the other hand, benefited from the steady recovery of the Philippine economy.
Megaworld’s hotel operations, which were severely affected by the pandemic, also showed signs of improvement in the first quarter of 2021. The company’s hotel revenues increased by 9% to Php 1.1 billion ($23 million), as more domestic tourists started to travel again.
Looking ahead, Megaworld remains optimistic about its prospects for the rest of the year, as the Philippine economy continues to recover and vaccination efforts ramp up. The company is set to launch several new projects in the coming months, including residential and office developments in key growth areas.
“We are confident that our diversified portfolio and strong brand will enable us to weather any challenges that may arise in the future. We remain committed to delivering value to our shareholders and customers,” Tan said.