Megawide FY2019 Revenue Up 24%

Megawide Construction Corp. reported consolidated revenues of PhP19.8 billion in FY2019, based on unaudited financial results, which was 24 percent higher than the previous year, with strong recovery by the construction business, continued momentum of the airport operations, and positive traction from landport operations.

“We are building on the strong performance of all our segments for the full year of 2019 and the first quarter of this year,” said Edgar Saavedra, Megawide Chairman and CEO. “Moving forward, while we anticipate challenges created by the COVID-19 pandemic, we are also primed to take advantage of the new opportunities it has created.”

Consolidated Performance

The company’s consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) also increased 7 percent to PhP4.7 billion. With interest and other non-cash charges associated with the full year operations of Terminal 2 at Mactan-Cebu International Airport taken up in 2019, consolidated net income came in at PhP1.04 billion for the year.

The robust performance continued in the first quarter of 2020 as consolidated revenues went up by 42 percent to P5.1 billion, with EBITDA rising 25 percent to PhP1.4 billion versus same period last year. Net profit for the period was recorded at PhP206 million amid the onset of the COVID-19 global pandemic.

Construction Recovery in Motion

The construction segment posted a 20 percent growth in revenue to PhP15.2 billion in FY2019 and contributed 77 percent to the group’s total. Construction revenues consistently rose from PhP2.6 billion in the first quarter of 2019 to PhP4.2 billion in the fourth quarter of the year as the business recovered from 2018’s performance.

Major projects undertaken in 2019 included Clark International Airport, Urban Deca Ortigas and Tondo, Gateway Mall, Worldwide Plaza, Albany Luxury Residences, One Fintech Tower, Eight Sunset Boulevard, International Finance Center and notable Double Dragon projects.

New contracts secured in 2019 amounted to PhP19.4 billion, which included Gentry Manor, One Fintech Tower, Eight Sunset Boulevard, Skymall, The Corner House Project, International Finance Center, Newport Link, and The Corner House Project, among others. As a result, total order book for 2019 remained healthy at PhP52.5 billion and continued its record pace for the second consecutive year.

In the first quarter of 2020, the construction business continued to rebound as revenues increased 52 percent year-on-year to PhP3.9 billion, despite the imposition of the enhanced community quarantine (ECQ) across Luzon in the second half of March.

Airport Sustains Momentum

Airport operations sustained its strong momentum in FY2019 as revenue grew 23 percent to PhP3.7 billion and contributed 19 percent to the total. The performance was driven largely by the 10 percent growth in total passenger volume to 12.7 million passengers, with both international and domestic segments improving by 11 percent and 9 percent, respectively. Total air traffic volume likewise increased by 6 percent, with international volume increasing by 12 percent and domestic traffic rising by 4 percent.

Focused marketing initiatives in 2019 resulted to increased passenger and air traffic volumes with new airlines, routes and additional frequencies. Thirteen new international destinations were opened in 2019: China Southern’s Guangzhou; Juneyao Airlines’ Shanghai; Philippine AirAsia’s Macau, Kaohsiung, and Taipei; Philippine Airline PR’s Nagoya; Cebu Pacific Air’s Shanghai; Cathay Pacific’s Hong Kong; Xiamen Air’s Chengdu and Quanzhou; Silkair’s Singapore; Jeju Air’s Daegu; and Air Busan’s Incheon. Meanwhile, six new domestic destinations were added that year: Royal Air Philippines’ Manila, Davao, Puerto Princessa, Cagayan, and Boracay; and Cebu Pacific’s Busuanga.

However, the global onset of COVID-19 affected both international and domestic travel early in the year with the imposition of travel restrictions. As a result, airport revenues declined by 10 percent to PhP803 million in the first three months of 2020 as total passenger volume fell by 21 percent to 2.4 million. This is 16 percent lower for the domestic segment at 1.7 million passengers and 29 percent less for the international segment at 742,000 passengers.