MEG Exceeds COL Forecast with 11.7% Core Profit Growth in FY22

Megaworld Corporation (MEG) has reported a strong performance in FY22, with core net income growing by 11.7% year-on-year to Php15.16 billion. This exceeds the forecast of Php14.7 billion and was driven by an 18.4% growth in real estate revenues, a 51.4% growth in mall revenues, and a 10.6% improvement in offices.

While MEG's reported FY22 net income remained flat at Php13.46 billion, it included a lumpy forex loss, while FY21's income had a one-time tax adjustment gain. Excluding these factors, core net income grew by 11.7% year-on-year.

The real estate segment sustained its upward trajectory in 4Q22, with sales increasing by 16% quarter-on-quarter and 33.6% year-on-year due to higher construction completion. Reservations sales also remained high in 4Q22, growing by 29.8% year-on-year to Php33.4 billion, while total take-up sales in FY22 reached Php119 billion, 49% higher than FY21 and higher than the company's target of Php110 billion.

MEG's mall and hotel rental revenues saw a significant jump in 4Q22, with mall revenues up by 52.9% year-on-year and hotel revenues up by 27.8% year-on-year. For FY22, mall revenues reached Php3.4 billion, up by 51.4%, while hotel revenues grew by 35% year-on-year to Php2.6 billion. Tenant sales surpassed pre-pandemic levels, and mall rents moved closer to pre-pandemic rates.

Lastly, MEG's office segment remained resilient, with 3Q22 office revenues up by 6% year-on-year and 1.6% quarter-on-quarter to Php3.12 billion, and full-year office revenues up by 10.6% year-on-year to Php12.2 billion. The high occupancy rate of 92%, above the industry average of around 85%, contributed to this growth.

Overall, MEG's strong performance in FY22 reflects its robust real estate segment, growing mall and hotel rental revenues, and resilient office segment. The company's high occupancy rate and sustained sales growth indicate its ability to adapt and thrive in challenging economic conditions.

Source: www.colfinancial.com

BLOOM's Profit for FY22 Surpasses COL Forecast Due to Strong 4Q22 Performance

BLOOM exceeded its profit forecast for FY22 thanks to a robust 4Q22 volume. The company's net profit in 4Q22 reached Php1.12 Bil, or Php1.53 Bil if we exclude forex losses from the Philippine Peso's appreciation. This marks a significant improvement from the Php1.20 Bil net loss, excluding forex gains, reported in the same period last year, and a 19% increase from the preceding quarter. The recovery of consumer spending during the holiday season, which was the first normal one since the pandemic, drove gaming and other revenues in the quarter.

For the whole year of 2022, BLOOM's net profit reached Php5.17 Bil or Php5.05 Bil, excluding forex gains, outperforming both COL and consensus estimates. The higher gaming revenue, lower depreciation, and increased interest income were the primary drivers of this exceptional performance.

Source: www.colfinacial.com

Coinbase Delists BUSD: What it Means for Investors and Traders Alike

 

Coinbase, one of the largest digital asset exchanges, has announced that it will delist Binance USD (BUSD) after an internal review of the stablecoin failed to meet the exchange's listing standards. The suspension of trading for BUSD will take place on March 13, 2023, on or around 12 pm ET, and will apply to all Coinbase platforms, including Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime.

This decision follows a recent order by the New York Department of Financial Services (NYDFS) to Paxos Trust, the issuer of BUSD, to stop minting new tokens as of February 21 due to unresolved issues related to Paxos' oversight of its relationship with Binance. Binance issued its own form of BUSD known as Binance-Peg BUSD on its in-house Binance Smart Chain, which the NYDFS said wasn't always backed by a sufficient quantity of reserve assets to maintain its 1:1 ratio with the U.S. dollar.

Moreover, Paxos was also sent a Wells notice by the U.S. Securities and Exchange Commission (SEC), indicating the SEC's belief that BUSD was an unregistered security. The SEC chairman, Gary Gensler, has shown a keen interest in taking action against crypto entities that trade in tokens and staking programs without registering them as securities.

Binance's CEO, Changpeng Zhao, tweeted a '4' in response to an online query about whether the SEC's action against BUSD was "more about Binance than stablecoins." This tweet was part of his new year's resolution for dealing with fear, uncertainty, and doubt (FUD) that others curiously describe as "facts."

Coinbase has assured its customers that their BUSD funds will remain accessible, and they will continue to have the ability to withdraw their funds at any time. This decision to delist BUSD highlights the increasing scrutiny on stablecoins and the importance of ensuring they meet regulatory requirements.