Megawide net income tumbles 18% to P1.8 B

Published April 11, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Engineering and infrastructure firm Megawide Construction Corporation posted an 18 percent drop in unaudited consolidated net profit to P1.80 billion last year, from P2.2 billion in 2017, in 2018, in line with the guidance provided at the start of 2018.

In a statement, Megawide Chairman and CEO Edgar Saavedra said “2018 was a landmark year for Megawide as we opened two flagship infrastructure projects, the Mactan-Cebu International Airport (MCIA) Terminal 2 and the Parañaque Integrated Terminal Exchange (PITX).

“Not only did we secure our space as a transport infrastructure developer, we are also witnessing the results of our diversification plan to mitigate the natural cyclicality of construction,” he added.

While net profit was affected by cyclicality in the construction business, earnings before interest, taxes, depreciation and amortization (EBITDA) remained healthy at P4.76 billion, an 8 percent increase from the previous year, propelled by the strong performance of the airport business.

Boosted by the opening of MCIA’s new international terminal in July 2018, airport operations delivered revenues of P3.00 billion, 30 percent higher year-on-year, and contributed 20 percent to total consolidated revenues.

Megawide posted consolidated revenues of P15.11 billion for 2018 compared with P19.16 billion in the previous year.

Construction remains the core revenue contributor at 78 percent, with 20 percent coming from airport operations, and the balance of 2 percent from airport merchandising.

Airport contribution rose due to the increase in passenger traffic and new commercial openings.

“We continue to see the growth in both international and local travel as an opportunity to promote Cebu not only as a destination but as a hub to other destinations in Visayas and Mindanao. We intend to make the most of these prospects by embarking on new developments within the MCIA concession area to attract more traffic and complement our existing facilities,” Saavedra said.