Megaworld’s H1 profit rises 11% to P9.81B

Megaworld Corporation reported a strong financial performance for the first half of 2024, with net income rising by 11% to P9.81 billion, up from P8.83 billion in the same period last year.

Net income attributable to shareholders increased by 9% year-on-year to P8.55 billion.

Consolidated revenues surged by 22% to P39.10 billion, driven by robust performance across its various business segments.

The company’s real estate sector played a significant role in this growth. Real estate sales reached P24.82 billion, a 30% increase from the previous year, fueled by high demand for residential properties in township developments across Taguig City, Cavite, Bulacan, Palawan, and Cebu.

During Q2 2024, Megaworld launched P18.0 billion worth of residential projects, including notable developments such as 9 Central Park – West Wing at Northwin Global City in Bulacan and One Portwood Residences at Newport City in Pasay City.

Other significant projects include CostaVida Residential Resort at The Mactan Newtown in Cebu, Lialto Beach and Golf Estates – Phase 1 in Batangas, and Sonrisa Gardens at Baytown Palawan in Puerto Princesa.

“We continue to see robust demand for our residential properties outside of Metro Manila. Before the year ends, we hope to launch more projects in the provinces as we remain on track to finish 2024 with 35 townships,” said Lourdes T. Gutierrez-Alfonso, president of Megaworld Corporation.

Megaworld Hotels & Resorts saw revenues jump 38% to P2.36 billion, driven by a resurgence in Meetings, Incentives, Conventions, and Exhibitions (MICE) activities and local tourism.

The recent laying of the capsule for the P1.5 billion Mactan Expo Center by President Ferdinand R. Marcos, Jr. is set to bolster this sector further.

Once completed by 2025, the Expo Center will feature a 2,500-seating capacity and will be managed by Megaworld Hotels & Resorts.

In June, President Marcos also inaugurated the 1,530-room Grand Westside Hotel at Westside City in Parañaque City, the largest hotel in the Philippines, aimed at accommodating the rising demand for MICE events and tourism.

Leasing revenues grew by 6% year-on-year to P9.33 billion. Megaworld Lifestyle Malls reported a 19% increase in revenues to P3.02 billion, driven by higher tenant sales and increased foot traffic, with occupancy rates at 93% as of June 2024.

The company also saw the opening of several new stores, including the second SuperPark in the Philippines at Venice Grand Canal in McKinley Hill, Taguig City.

Despite challenges in the Philippine office industry, Megaworld Premier Offices maintained stable revenues at P6.31 billion, securing new office leases totaling 55,000 square meters primarily in McKinley Hill, Eastwood City, and The Mactan Newtown.

Occupancy rates for office developments stood at 87%, above the industry average.

Megaworld continues its expansion with the launch of its 32nd township, Lialto Beach and Golf Estates in Lian, Batangas, a 150-hectare development offering premier beachside living with world-class golf facilities.

Additionally, the company announced its 33rd township, the 25-hectare San Benito Private Estate, developed in partnership with the group behind the renowned medical wellness resort, The Farm at San Benito.

To date, Megaworld has developed 33 master-planned integrated urban townships, lifestyle communities, and estates spanning over 5,300 hectares across the Philippines, including notable developments like Eastwood City in Quezon City, Newport City in Pasay City, and The Mactan Newtown in Cebu.