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Megaworld aims to post double-digit growth

Posted on June 15, 2012 06:46:10 PM [ BusinessWorld Online ]

MEGAWORLD CORP. expects to post double-digit profit growth by yearend as revenues from residential sales and retail leases reportedly remain strong, an official said on Friday.

"With or without the crisis, we are looking at double-digit growth in net income. We have two main sources: residential sales and retail, both of which continue to be strong and are doing well now," Kingson U. Sian, Megaworld senior vice-president and executive director, told reporters at a briefing following the firm's annual stockholders' meeting.

Last year, Megaworld managed to grow its net income by 59.64% to P8.03 billion from P5.03 billion the year previous, buoyed by an increase in consolidated revenues that rose by 39.35% to P28.63 billion from P20.54 billion two years ago.

For the first quarter, the company clinched P10.4 billion in reservation sales, putting it on track on its P35-billion sales target by the year-end.

Initial groundwork has already been laid for two mixed-use developments in Taguig City that will feature residential and retail components, Mr. Sian said.

The company is also bullish on its retail business following the completion of its Lucky China Town Mall in Cityplace, a 2.5-hectare residential and shopping district in Binondo, Manila.

"Wherever we have a community, we will have a retail presence. Our retail [sector] has been growing nicely, and we like retail in particular because it gives you a base of recurring income," Mr. Sian said, adding that Megaworld was aiming for roughly P5 billion in retail revenues this year from P3.8 billion last year.

In a separate related development, Megaworld affiliate Travellers International Hotel Group, Inc., may expand its current hotel offerings in the 25-hectare Newport City in Pasay in response to robust occupancy rates.

Travellers International, a joint-venture between Megaworld's parent Alliance Global Group, Inc. and Genting Hong Kong, Ltd., currently operates three hotels in Newport City, with two slated for completion this year.

"We are looking to expand some facilities. We're expanding Mariott [Hotel Manila] given that next to it is a vacant lot. We might put 200 rooms in addition to the existing 342 rooms," Mr. Sian, who is also president of Travellers International, said.

"There will certainly be growth for Travellers. The potential is there.

We continue to look at new markets, including international markets, as they continue to be interesting for us to develop," Mr. Sian added.

Megaworld shares surged by 2.07% to P1.97 on Friday from P1.93 at its previous close. -- Franz Jonathan G. de la Fuente

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