Construction and engineering group Megawide Construction Corp. posted a net profit of P927.54 million in the first six months, flat from the earnings in the same period last year, due to slower construction revenue alongside higher financing costs.
Including earnings attributable to non-controlling interest, Megawide’s first semester net profit rose by 10 percent year-on-year to P1.26 billion, mostly driven by its Cebu airport operation and merchandising businesses.
For the second quarter alone, net profit attributable to equity holders of parent company fell by 7 percent year-on-year to P452.25 million due to a 12-percent drop in contract revenue. This was partly tempered by the 15-percent year-on-year growth in airport operation revenues to P676 million and the 387-percent increase in airport merchandising revenue to P206.42 million in the first six months.
“We remain optimistic about the company’s continued strong performance in 2018,” said Megawide chair and chief executive officer Edgar Saavedra.
The airport business segment contributed 65 percent to consolidated net earnings in the first half while the construction business segment accounted for the remaining 35 percent.
Consolidated revenue hit P8.96 billion in the first semester, of which the construction business contributed 82 percent while the airport business accounted for 18 percent.
Airport operations posted a 14 percent year-on-year growth in six-month revenues to P1.32 billion. This was driven by the 12 percent increase in passenger volume to 5.8 million. International passenger volume rose by 17 percent.
Domestic tourists accounted for two-thirds of airport arrivals in the first semester while foreign tourists accounted for the remaining one-third. —DORIS DUMLAO-ABADILLA