PUBLICLY listed Megawide Corp. disclosed Monday, July 8, 2019 that airport operations are forecasted to sustain a strong performance, benefiting from the country’s tourism story, particularly in southern Philippines, where the Mactan-Cebu International Airport (MCIA) plays a central role.
As a result, the company said earnings before interest, taxes, depreciation and amortization, which provides a more accurate measure of value creation, is expected to post healthy growth and margins.
Based on Mactan-Cebu International Airport Authority data, total passenger volume at the MCIA grew 14 percent in the first four months of 2019, with the domestic segment up 14 percent and the international segment higher by 10 percent. This despite the re-opening of Boracay in late 2018.
However, depreciation and amortization charges, associated with the opening of Terminal 2 at MCIA and interest expenses, which were capitalized during completion are expected to double from 2018’s P980 million.
Moreover, the company said its net income attributable to shareholders is expected to improve in 2019, as construction rebounds and increases its share to net income.
As of June 2019, the company has signed and received Notices to Proceed for seven new projects worth P9.8 billion, and is on track to meet the P20 billion target new contracts, mostly from residential, office and commercial projects.
It said this will further beef up the company’s order book and provide revenues down the line as project completion progresses.PR