Posted on 09:28 PM, November 11, 2010 [ BusinessWorld Online ]
STRONG residential and rental revenues allowed Andrew L. Tan-led property giant Megaworld Corp. to hike profits by more than a third to P4.08 billion in January to September.
“The company’s consolidated revenues for the three quarters reached P15.75 billion, up 22% from P12.92 billion in the same period last year,” the company said in a disclosure yesterday.
Rental income from business process outsourcing and retail projects surged by 39% to P1.97 billion in the nine-month period. “We are very bullish about the prospects of the Philippine economy and the Philippine real estate industry,” Mr. Tan, chairman and chief executive of Megaworld, said in the same statement.
“We see Megaworld’s revenue and income hitting record levels this year, and we believe this is just the beginning,” he added. Profits of Megaworld rose by 7.2% to P4.06 billion last year.
Megaworld ended September with cash and cash equivalents totaling P21.15 billion. “With this strong capital base, we can continue to pursue our goals even as we enhance our operating efficiency and profitability further,” Mr. Tan said, adding that the company did not see a need to raise funds through a stock rights offering in the next few years.
Megaworld First Vice-President Francisco C. Canuto attributed better residential sales to the two-decade track record of the company and the popularity of “live-work-play-learn” communities in Metro Manila.
Megaworld, a leader in higher-end condominium developments, claims to have pioneered the concept.
By yearend, the property developer will have about 385,000 square meters of office space in its portfolio.
Megaworld accounts for the bulk of earnings of listed conglomerate Alliance Global Group, Inc.
Shares in Megaworld closed a centavo lower at P2.57 each yesterday. -- N. J. C. Morales