Andrew Tan firms post higher Q1 earnings

MANILA, Philippines — Two Andrew Tan-led companies reported strong first quarter income results.

Megaworld Corp.  posted a net income of P4.6 billion during the period, surpassing its pre-pandemic quarterly  levels for the first time.

This figure was up 30 percent from P3.5 billion a year ago as all core businesses registered strong topline growth.

Megaworld raked in  revenues of P16.2 billion during the period, up 24 percent from the previous year.  Consolidated  revenues and net income are already nine percent and 11 percent higher, respectively, compared to the first quarter of 2019.

Net income attributable to the parent company’s shareholders grew by 33 percent to  P4.1 billion.

“This affirms our position in the industry and ability to quickly adapt in this new environment and capture opportunities,” Megaworld chief strategy officer Kevin Tan said.

Real estate sales for the quarter rose by  17 percent to P9.4 billion, driven by the higher completion rate of its projects.

Leasing revenues likewise grew by 18 percent to P4.4 billion with the growth led by the performance of the mall segment.

Across the different subsidiaries, Megaworld Premier Offices posted P3.1 billion in rental income during the period, a five percent increase from the P3 billion last year.

Megaworld Lifestyle Malls saw revenues jump by 73 percent in the first quarter, amounting to P1.2 billion while Megaworld Hotels & Resorts saw revenues soar by 62 percent to P813 million in the first quarter of 2023.

Megaworld subsidiary Global-Estate Resorts Inc. (GERI) also started the year with stellar growth across all business segments as net income jumped by 40 percent to  P479 million.

Consolidated revenues grew by 56 percent to P2.1 billion.

“Our strong start to the year raises our confidence that we are on track to hit new heights for GERI. This is also a testament to the quality of our projects and the strength of our brand. Demand continues to grow, and we are committed to capturing new opportunities as we strive to deliver meaningful value to our stakeholders,” said Monica Salomon, president of GERI.

Real estate sales rose to P1.7 billion, up 63 percent from last year’s P1 billion as a result of higher construction completion. Reservation sales, likewise, grew by 45 percent to P5.8 billion.

Hotel revenues more than doubled to P143 million due to the continued rise of local tourism and travel.

Leasing revenues grew by 10 percent to P123 million, driven by higher rental  in Southwoods City, Alabang West, and Twin Lakes.