Megaworld Corp., the property unit of tycoon Andrew Tan, said Thursday net income fell 56 percent in the first three quarters to P8.35 billion from P19 billion a year ago, in the absence of large non-recurring gains this year.
The company said minus the P11.62-billion one-time gains posted in 2014, core profit in the nine-month period rose 12.5 percent this year, driven by the expansion of integrated urban townships across the country.
Megaworld said in a disclosure to the stock exchange consolidated revenues grew 10.9 percent in the January-September period to P33.53 billion from last year’s P30.24″billion.
The property firm said the rental business was the fastest growing segment in the first nine months, rising by 24 percent to P6.44 billion from P5.20 billion in the same period last year.
“While we have been successful in our aggressive expansion of our townships across the country, it is time to further build on our recurring income portfolio. We are currently building more office towers and more malls and commercial spaces in all of our townships. We are certain in reaching our rental income target of P9 billion this year,“ Megaworld chief finance officer Francis Canuto said.
Megaworld’s residential sales continued its growth trajectory, with real estate sales rising 11.5 percent to P20.5 billion.
Megaworld launched five new townships this year, including the 31-hectare Westside City at the Entertainment City in Parañaque City near Manila Bay, the 170-hectare Sta. Barbara Heights in Iloilo and the 35.6″hectare mixed use development in Pampanga.
It also launched the 53-hectare Northill Gateway and the 34-hectare The Upper East, both in Negros Occidental.
The company will end the year with 20 townships. “Our 20 townships become a testament of our company’s continuing commitment to help build the country. We will continue to build communities that make living, working and playing more convenient and exciting to Filipinos,” Canuto said.
Meanwhile, Emperador Inc., the liquor unit of Alliance Global Inc., the investment company of Tan, said net income grew 3 percent in nine months to P4.7 billion from P4.56 billion recorded in the same period last year.
Nine-month revenues increased 45 percent to P28.86 billion from P19.56 billion, boosted by foreign operations. “Our company is sowing the seeds of future growth while maintaining its dominance in the local liquor industry,” Emperador president Winston Co said.