Property developer Megaworld Corporation reported a 9.2 percent improvement in consolidated net income during the first quarter of 2010 to P1.11 billion from P1.02 billion in the same period last year.

The firm said in a disclosure to the Philippine Stock Exchange that consolidated total revenues gained 6.15 percent from P4.38 billion to P4.65 billion due to strong property sales and increased leasing income.

Revenues are composed of real estate sales, rental income, hotel income, interest income, dividend income and other revenues.

The bulk of generated consolidated revenues came from the sale of residential lots and condominium units at 66.82 percent of the total, amounting to P3.11 billion for the first quarter of 2010 compared to P3.01 billion for the same quarter of 2009, an increase of 3.3 percent.

Rental income contributed 12.82 percent to the consolidated revenue and rose 27.19 percent to P596.34 million compared to P468.86 million reflected in the same period last year. Contributing to the growth are the escalation and completion of additional leasing properties.

The Group’s hotel operations posted an amount of P55.27 million for the first quarter of 2010, an increase of 2.85 percent, from P53.74 million for the first quarter of 2009.

In general, the increase in cost and expenses by 5.23 percent from P3.36 billion for the first quarter of 2009 to P3.54 billion for the first quarter of 2010, was due mainly to increase in recognized real estate sales, as well as marketing and selling expenses particularly commission expenses resulting from aggressive marketing activities.

Income tax expense increased by 55.92 percent from P288.68 million to P450.09 billion for the first quarter of 2010 due to higher taxable income and tax effects of deductible temporary differences.

Operating expenses as a percentage of consolidated total revenues were 9.31 percent for the first quarter of 2010 and 8.22 percent for the first quarter of 2009, respectively. (JAL)