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Philippines: Megaworld investing more in e-commerce
MANILA, Philippines — Megaworld, the Andrew Tan-led property developer, is investing more in e-commerce facilities to fast track the recovery of its commercial and hotel businesses.
The two businesses have been affected by the coronavirus disease 2019 or COVID-19 pandemic, said Megaworld chief strategy officer Kevin Tan.
In the coming weeks, the company is set to roll out digital platforms to enhance customer experience.
“Our e-commerce platforms will give our customers the convenience and comfort that they need as we take their safety and well-being to a whole new level. We will also do the same for our mall customers, which will also greatly help our retail tenants,” Tan said.
Megaworld Hotels, for example, is launching its ‘E-CONCIERGE,’ a mobile application that allows guests to have contactless interaction with hotel staff from check-in to check-out.
This will include virtual ordering of food and beverage from various outlets inside the hotels.
Megaworld’s hotel revenues declined four percent to P551-million from P574-million a year ago as check-ins, particularly from international guests, dropped because of the pandemic.
In all, Megaworld’s net income for the first quarter of 2020 declined eight percent to P3.8-billion from P4.1-billion last year.
Excluding a non-recurring gain of around P189-million, core profit declined three percent year-on-year. Net income attributable to parent company stood at P3.5-billion, also down nine percent from P3.8-billion during the said period last year.
“Our real estate sales still helped mitigate the impact of the challenges we faced during the quarter. Our office portfolio, which remains very attractive to locators because they are mostly PEZA-accredited, provided a buffer against the expected weakness of our mall and hotel operations. We keep an eye on effective strategies that will cushion the impact of these challenges for the rest of the year,” Tan said.
The company has also reduced its capital spending for the year from P60-billion to just P36-billion.
Source: https://www.philstar.com/business/2020/06/30/2024432/megaworld-investing-more-e-commerce