Airport operations boosted Megawide revenue by 25%

CEBU, Philippines - Megawide Construction Corp. said its operations of the Mactan-Cebu International Airport saw a 25 percent growth in revenue in the first nine months of 2016.

In its financial report disclosed to the Philippine Stock Exchange, the diversified infrastructure firm said "airport operations revenues contributed P1.38 billion or 25 percent increase from the third quarter of 2015."

"Megawide’s airport subsidiary GMCAC (GMR-Megawide Cebu Airport Corp.) posted an increase in revenues by 25 percent or P276 million due to strong aeronautical revenues, commercial revenues and rental revenues as a result of the increase in passenger traffic of 11 percent compared to the same period in 2015," the listed builder said.

Domestic and international flights increased by 8 percent and 9 percent, respectively, following the launch of various international routes out of Cebu such as those of Emirates, Philippine Airlines and Eva Air; and additional domestic flights to Davao, Bacolod, Butuan, Iloilo and Cagayan de Oro.

Megawide said aero and aero-related revenues comprise 72 percent of the total airport revenues in 2016.

On the other hand, non-aero related revenues comprise 28 percent of the 2016 airport revenues, increased by P138 million or 57 percent from same period of last year primarily due to new concessionaire contacts and advertisements from Jollibee, Starbucks, Suyen Corp, Bigby's, Ullis Streets of Asia and the revamping of contract with Cesar's Foodland Inc.

Overall, the company posted a 25 percent rise in net income to P1.61 billion in the first nine months of 2016, boosted by the expansion of its core construction and airport businesses.

Its revenues during the nine-month period also reached P13.73 billion, up 27 percent from P10.79 billion recorded last year.

“Megawide’s milestone performance can be attributed to its strong construction order book, as well as growing airport business led by the company’s operation of the Mactan-Cebu International Airport,” CEO Michael Cosiquien said.

“Megawide is further diversifying its revenue streams to increase recurring components towards achieving a more stable and sustainable growth,” he said.

The firm's revenues from its core construction business grew 27 percent to P12.35 billion.

Shares of Megawide were at P14.80 apiece at noon trading yesterday, up 2.78 percent.

Megawide, together with Bangalore-based partner airport operator GMR Infrastructure Ltd., took over operations of the MCIA in November 2014 through the public-private partnership (PPP) scheme.

The construction of Mactan airport's Terminal 2 is currently ongoing, and is expected to be operational by the end of June 2018.

The joint venture GMCAC won in April 2014 the contract for the airport's  P17.52-billion Passenger Terminal Building project under the Aquino government’s flagship PPP program.

The terminal's expansion will raise the airport’s annual passenger carrying capacity to 12.5 million.

The existing terminal was designed for 4.5 million passengers a year, but currently serves around 8.6 million.

Passenger traffic at the MCIA already reached 6.6 million from January to September this year, posting a 13 percent growth.

During the period, passengers, both domestic and international, reached 6.598 million from 5.823 million in the same period last year.

Likewise, aircraft traffic saw a 13 percent growth in the nine-month period to 53,198 comprised of both domestic and international flights.

That is up from 46,936 flights recorded in the same period in 2016. (FREEMAN)