Megawide nets P1.92B
Construction and engineering firm Megawide Construction Corp. boosted net profit last year by 30 percent to P1.92 billion as a double-digit rise in earnings from its construction and airport businesses sent revenues to a record high.
In a disclosure to the Philippine Stock Exchange, Megawide said consolidated revenues had increased by 14 percent to P17.66 billion. Construction business remained the core revenue contributor, accounting for 89 percent of the total revenues while airport business contributed 11 percent.
“The construction segment is continuously outperforming its previous year’s revenue production for two consecutive years and has achieved a compounded annual growth rate of 15 percent. The company’s performance was attributed to its strong construction order book and the continuous stream of projects as a result of its unparalleled quality and level of work,” Megawide president Edgar Saavedra said.
Construction revenues increased by 13 percent to P15.79 billion. This growth was driven by private sector projects such as: Meridian Park phase 1 of Double Dragon Properties; Le Grand business process outsourcing cluster phases one and two of Megaworld Corp., 8990 Tower Edsa and Tondo of 8990 Holdings; Landers Warehouse Balintawak & Otis of Southeast Asia Retail Inc., and Proscenium Lincoln & Lorraine Towers of Rockwell.
Total construction order book as of end-2016 amounted to P38.49 billion.
In its second full year of operations and management, Mactan airport operator GMR-Megawide Cebu Airport Corp. (GMCAC) contributed a significant 47 percent to the consolidated net income in the amount of P902.5 million. This was 80 percent higher than last year’s level.
Megawide, together with Bangalore-based partner GMR Infrastructure Limited, took over operations of the Mactan-Cebu International Airport in November 2014.
“GMCAC continued to deliver strong growth, with substantial contribution to our bottomline. The 26 percent increase in revenue was attributed to the 12 percent year-on-year increase in passenger traffic. We expect this business segment to gain traction with our continuous effort to market Cebu as an alternative international gateway to the Philippines, given its strategic geographical location and proximity to tourist destinations,” Saavedra explained.
Non-aero related revenues, which accounted for 28 percent of the airport revenues, increased by 57 percent last year, primarily attributed to new concessionaire contracts and advertisements from retailers such as Jollibee Foods Corp., Suyen Corp., Starbucks, Ulli’s Streets of Asia, and Coffee Bean & Tea Leaf, among others.
For 2016, domestic and international flights in the Cebu airport increased by 8 percent and 22 percent, respectively, with the entry of Xiamen Airlines, China Eastern, Tiger Airway, Emirates, PAL Cebu to Los Angeles and Eva Air and additional domestic flights to Davao, Bacolod, Butuan, Iloilo, Roxas, Ormoc, and Cagayan de Oro.
“GMCAC’s upward trajectory will be bolstered further with the completion of Terminal 2 in June 2018, increasing the airport’s designed capacity to 12.5 million. This will help ensure Megawide’s stable and sustainable growth moving forward”, Saavedra said.
MCIA’s transformation has garnered a number of international awards, most recently “Best Regional Airport in Asia Pacific” for 2016 from the CAPA Center for Aviation.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.