Megawide profit plunges 50% as construction contracts fall

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MEGAWIDE Construction Corp.’s net income plunged 50% in the first quarter amid a drop in construction contract revenues.

The company posted an attributable net income of P239.26 million in the three-month period ending March, down 49.7% from the P475.29 million it posted in the same period last year.

Revenues slipped 19.89% to P3.56 billion, dragged by the 31.28% decline in contract revenues to P2.57 billion.

“The trend is expected to move upwards in the succeeding quarters as major works from 2018’s new projects started to commence,” it said in a regulatory filing.

Contract revenues make up 72% of Megawide’s total revenues.

“The Company is expected to increase its revenue volume in the coming quarters. On-going projects which contributed to the first quarter’s revenue include Araneta’s Gateway Mall, 8990 Holding’s Ortigas and Tondo Projects and Midland’s Taft East Gate,” it said.

Airport operations, which makes up 25% of Megawide’s total revenues, performed 38% better than last year as it ended at P891.99 million for the three-month period. The increase was driven by a 13% growth in total passenger volume during the first quarter.

Megawide’s joint venture with Indian company GMR Infrastructure Ltd. operates the Mactan-Cebu International Airport (MCIA).

MCIA serves 30 domestic and 20 international destinations with 25 partner carriers as of end-March.

Airport merchandising generated P84.92 million in revenues, 27.2% up from last year, while terminal operations added P20 million.

The Parañaque Integrated Terminal Exchange (PITX) reported P20 million in revenue during the first three months of 2019. Megawide expects the PITX’s share to grow as more commercial spaces open in the second half.

The company’s consolidated expenses decreased 24.7% to P2.47 billion, as contract costs went down 31.5% to P2.17 billion. — Denise A. Valdez