Megaworld Corp. recorded profit of P10.6 billion in 2020, down 45 percent from 19.27 billion the prior year.
Revenues reached P43.5 billion down 35 percent from P66.92 billion in 2019.
“On a quarter-on -quarter basis, the last quarter of 2020 saw signs of remarkable recovery in most of the company’s core businesses, particularly on Megaworld Lifestyle Malls, Megaworld Hotels, and even on the residential business, as the country eased quarantine measures in time for the holiday season,” the company said.
Real estate sales grew 22 percent in the fourth quarter from the third quarter last year with reservation sales up 85 percent. Megaworld Lifestyle Malls and Megaworld Hotels also grew 24 percent and 25 percent quarter- on -quarter, respectively.
Kevin Tan, Megaworld chief strategy office, said the company was “able to preserve profitability” as it invested in “continuous innovation and strengthened relationships with our customers and retail partners.”
Megaworld’s rental income hit P12.9 billion, down 23 percent, while real estate sales declined 42 percent to P24.9-billion.
“Despite the effects of the pandemic to the tourism and hospitality industry, Megaworld Hotels still booked P1.5-billion last year,” Tan said.
On the residential business, the company launched P7.8 billion worth of new projects last year.
Its office space business closed new leases last year, even as the three quarters of the year were marred by community lockdowns across the country.
“Around 135,000 square meters of fresh office space inventory were leased out in the company’s townships in Iloilo, Quezon City, and Fort Bonifacio. Around 78 percent of these new leases are part of the expansion programs of existing office partners while the rest were taken by new client companies,” Tan said.
“These are mostly companies operating BPOs, e-commerce, logistics, and finance,” Tan said.
In addition to new leases, the company also bagged lease renewals of around 145,000 square meters (sq.m.)of office spaces from various company tenants last year.
The company completed around 87,000 sq.m. of new office spaces last year, bringing its leasable office inventory to 1.4 million sq.m.
“At this point, we can say that our office business is the most stable income generator in our company’s revenue stream with or without this health crisis, and we continue to focus on the expansion of this business in the years to come and further strengthen our leadership in the country’s office property sector,” said Tan.
