Megaworld Grows First-Half Profit to P6B
August 11, 2016
Megaworld Corporation, the country’s biggest urban township developer and office space lessor, increased its net income by 11 percent to P6.03 billion during the first half of 2016 from the P5.43 billion generated in the same period last year.
In a disclosure to the Philippine Stock Exchange, the company said its sustained earnings growth continues to be driven by its aggressive focus on township developments not only in Metro Manila but also in the provinces.
“The government’s thrust to expand economic opportunities to the regions is parallel to Megaworld’s direction in expanding its developments outside of Metro Manila where the company is already strong,” said Megaworld Treasurer Francis Canuto.
He added that “the beauty behind our diversification story is that it is intrinsically part of our drive towards nation building—we bring growth where we are headed.”
Consolidated core revenues of the Megaworld Group, which includes subsidiary brands Global-Estate Resorts Inc., Empire East Land Holdings Inc., and Suntrust Properties Inc., amounted to P23.03 billion for the first half of 2016, up 5 percent from P22.01 billion during the same period in 2015.
Megaworld’s stellar performance in its rental business, which includes offices, malls and commercial centers, remained to be the primary contributor to the sharp growth in its first half earnings.
Rental income rose 15 percent in the first six months of the year to P4.84 billion compared to P4.21 billion in the same period last year.
On the average, the company is scheduled to deliver around 150,000 square meters of office spaces and around 75,000 square meters of commercial spaces annually until 2020.
By 2020, Megaworld will open eight new office towers in Iloilo Business Park, The Mactan Newtown and The Upper East in Bacolod to reach its around 200,000 square meters of office spaces in the Visayas BPO Triangle, generating around 50,000 direct jobs in the BPO sector.
“Creating the Visayas BPO Triangle allows us to streamline our growth strategy in our rental portfolio. We see a sharp demand for office spaces from the BPO sector in these three Visayan cities in the next three to five years as more graduates become part of the local workforce,” explained Canuto. — Manila Bulletin