Megaworld posts 17% net income growth in 2018
MANILA, Philippines – Property developer Megaworld Corporation reported a double-digit increase in both net income and net income attributable to parent company in 2018, credited to expansions in all of the company's portfolios.
In a statement on Monday, April 8, the company saw a 17% year-on-year increase in its net income to P15.8 billion. Net income attributable to parent company also grew by 17% year-on-year to P15.2 billion. (READ: Megaworld net income up 13.4% to P13.3 billion in 2017)
Megaworld chief strategy officer Kevin Tan said they saw a "continuing growth in the demand" for residential units as well as office and commercial spaces in their townships last year.
"Perhaps, as we build these townships, people saw the advantage of living where they work, and living where everything is just within reach," he added.
"This model makes every aspect of our business viable and expandable, and we continue to spot for opportunities where we can further grow and innovate our offerings."
The residential portfolio took up 66% of 2018's consolidated revenues after the company launched 25 residential projects, boosting sales by 11.5% year-on-year to P38 billion. Sales from reservations also generated P135 billion.
"[W]e continue to see strong take-up especially in our mature townships, and there is already a consistently growing interest in our newly-launched townships," Tan said.
The company's rental portfolio, or office and lifestyle mall leasing, contributed the second largest share in consolidated revenues at 25%. Sales from its rental business grew by 21% to P14.3 billion. (READ: Amid soaring demand, Megaworld sees P20-B rental income by 2020)
Last year, Megaworld opened the Festive Walk Mall at the Iloilo Business Park and also won the long-term lease contract to build the Philippine Global Service Center for JPMorgan Chase Bank, NA.
The company's hotel business also saw 14% year-on-year growth to P1.5 billion in revenues after the launching of the 684-room Savoy Hotel Manila and the 126-room Twin Lakes Hotel. So far, Megaworld has 7 hotels under its belt. – Rappler.com