Megaworld reports 25% jump in 2008 net profit

MANILA, Philippines - Megaworld Corp., the high-end property unit of tycoon Andrew Tan, reported a 25.1-percent jump in net profit last year due to robust sales and improving leasing operations.

In a financial report filed with securities regulators, Megaworld said consolidated net earnings rose to P3.79 billion on the back of a 25-percent growth in revenues from P14.6 billion to P17.3 billion.

Of the total revenues, P12.43 billion came from the sale of residential lots and condominium units or an increase of 17.2 percent from the previous year.

Sales came from Belagio 1, 2 & 3, Forbeswood Parklane in Fort Bonifacio, One Central Park in Eastwood City, McKinley Hill, Eastwood Le Grand in Quezon City, Cityplace Binondo in Manila, Newport City and Greenbelt Chancellor in Makati.

Leasing income contributed P1.3 billion, accounting for 7.5 percent of total revenue and 39.6 percent higher than the P931.88 million recorded a year earlier.

The group’s hotel operations chipped in P246.92 million, slightly lower than the year earlier figure.

Cost and expenses, meanwhile, went up 17 percent to P13.5 billion largely due to an increase in recognized real estate sales as well as marketing and selling expenses, particularly commission expenses. 

For this year, Megaworld expects it net income to grow at a slower pace given the tough business environment. Net earnings are forecast to reach P4.02 billion, or 5.8 percent higher than the 2008 figure.

Revenues are projected to hit P17.58 billion or same as last year’s level.

Megaworld is developing 17 new residential projects with total projected revenues of around P26 billion. Most of the projects are located in the company’s five major township developments across Metro Manila.