Megawide earnings rise 30% in 2016

MANILA, Philippines - Megawide Construction Corp. reported a consolidated net income of P1.92 billion last year, up 30 percent on higher revenues.

Consolidated revenue reached P17.66 billion, 14 percent higher than the previous year, the company said in a filing yesterday.

Megawide president Edgar Saavedra said the company’s construction business remains the core revenue contributor, with an 89 percent share while the airport business contributed 11 percent or P1.87 billion.

 “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,” Saavedra said.

Megawide said that construction revenues increased 13 percent to P15.79 billion, propelled by private sector projects.

These include Meridian Park Phase 1 of Double Dragon, Le Grand BPO Cluster Phases 1 and 2 of Megaworld, 8990 Tower Edsa and Tondo of 8990 Holdings, Landers Warehouse Balintawak and Otis of Southeast Asia Retail Inc., and Proscenium Lincoln & Lorraine Towers of Rockwell.

Megawide achieved total construction order book of P38.49 billion as of Dec. 31, 2016.

For the airport business, GMR-Megawide Cebu Airport Corp. (GMCAC) contributed 47 percent or P902.5 million to the consolidated net income.

This is 80 percent higher than last year’s P501 million.

Megawide, together with Bangalore-based partner GMR Infrastructure Lld., 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 said.

The consortium noted an increase in domestic and international flights of eight 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.

Saavedra said GMCAC’s business would get an even bigger boost with the completion of the airport’s Terminal 2 in June 2018, which would increase the gateway’s designed capacity to 12.5 million.

“This will help ensure Megawide’s stable and sustainable growth moving forward”, Saavedra said.