MEGAWIDE Construction Corp. posted a 9% decline in attributable net income to P415 million during the third quarter, as higher revenues from its airport business failed to offset the drop in construction operation revenues.
In a regulatory filing, the diversified engineering and infrastructure conglomerate said its revenues fell 17% year-on-year to P3.936 billion during the July to September period.
Megawide reported a 28% fall in contract revenues to P2.98 billion, while airport operations revenues rose 51% to P857.35 million and airport merchandising revenues surged 88% to P89.8 million.
The Mactan-Cebu International Airport (MCIA) Terminal 2, which is operated by Megawide’s joint venture with Indian company GMR Infrastructure Ltd., started operations in July.
Megawide’s nine-month attributable net income slipped 4% to P1.321 billion versus last year’s P1.383 billion.
Revenues declined by 11% to P12.746 billion, “as a result of the cyclical nature of the construction business segment.” The bulk or 81% of revenues came from the construction business, while the airport business contributed the rest.
Revenues from its construction operations stood at P10.4 billion as of end-September, 17% lower than the same period last year “due to the varying stages of construction of projects in the order book and scheduled start of construction of the new projects booked towards the end of 2017.”
Megawide said it booked P16.8 billion worth of new contracts as of end-September. “This brought the total outstanding order book to P39.7 billion by the end of third quarter, providing revenue visibility for the next two years,” it said.
Airport operations increased its 9-month revenues by 26% to P2.180 billion, as the MCIA saw double-digit growth in passenger volume. As of end-September, MCIA handled 8.6 million passengers.
“Non-aero or commercial revenues, which contributed 32% to the total, grew by 30% to P698.4 million. Passenger service charge, representing 55% of airport revenues, increased by 25% to P1.207 billion driven by the double-digit growth in passenger throughput. The remaining 13% is accounted for Aero-related revenues, which increased by 24% to P273.7 million,” it said.
“Megawide’s prospects remain promising with the continued strong growth of the airport business with the opening of the MCIA Terminal 2. This is combined with our solid prospects in the construction business as we continue to expand the order book levels, ensuring revenue visibility for the next two to three years, at least,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra was quoted as saying in a statement. — D.A.Valdez
