Posted on 09:47 PM, April 15, 2010 [ BusinessWorld Online ]
PROFITS of property developer Megaworld Corp. rose by 7.2% to P4.06 billion last year, rescued by a strong fourth quarter from an otherwise slow year.
“A strong fourth quarter capped an outstanding year. In 2009, Megaworld performed well despite the challenging economic environment,” said Megaworld Executive Director Kingson U. Sian in a statement.
The listed real estate firm of Andrew L. Tan posted a net income P3.79 billion in 2008.
Last year, consolidated revenues went up by just 2.7% to P17.8 billion, from P17.3 billion in 2008.
Real estate sales inched up to P12.6 billion from P12.4 billion year on year.
Megaworld, a leader in higher-end condominium developments, claims to have pioneered the “live-work-play-learn” concept.
It has six ongoing township projects within Metro Manila and several residential developments in the Makati central business district.
Megaworld has allotted up to P10 billion for capital expenditures this year to fund five new residential projects worth P12 billion.
The firm, which is also into office buildings, claims to have the largest share of business process outsourcing spaces with 306,000 square meters.
It expects another 78,000 square meters to be completed within the year.
Megaworld ended the year with P20.9 billion in cash, 70% up from end-2008 figures, following a P5-billion bond issuance in November.
“With our strong financial position, solid recurring revenue and profit streams, we are confident about 2010. Apart from the office developments we will be completing, we will continue to launch new residential developments,” Mr. Sian said.
Shares in Megaworld, which was chosen as the government’s joint venture partner to develop the former Joint United States Military Advisory Group property in Fort Bonifacio in Taguig City last month, dropped to P1.38 each yesterday from P1.44 on Wednesday.
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