SECTIONS
Cebu
Tuesday, June 15, 2021
CEBU

MCIA losses drag Megawide first half income

LISTED company Megawide has booked consolidated revenues of P6.44 billion, down 21 percent in the first half of 2020.

In its disclosure to the local bourse on Monday, Aug. 17, the company’s construction arm contributed P4.88 billion, airport operations at P888 million, and airport merchandising chipped in P69 million.

Its consolidated earnings before interest, taxes, depreciation and amortization amounted to P1.45 billion. However, interest expenses and other non-cash charges amounting to a combined P1.12 billion for the period, associated largely with the Mactan-Cebu International Airport concession, resulted in a net loss attributable to equity holders of P398 million, the first in Megawide’s history.

Airport operations recorded lower passenger volumes of 742,000 for international passengers and 1.7 million for domestic passengers in the first half of 2020. This is lower than the 2.1 million and 4.3 million international and domestic segments, respectively, recorded in the same period last year, which naturally affected all revenue segments.

“The situation we are in is unprecedented but we remain in high spirits for the company’s prospects moving forward. This is the reason why we are building our runway for the future, which we envision to propel us to even greater heights in the years to come,” said Megawide chairman and chief executive officer Edgar Saavedra.

Other businesses

But the company’s landport project, the Parañaque Integrated Terminal Exchange, delivered revenues of P599 million and a net income of P255 million during the first six months of the year.

Saavedra said landport’s performance cushioned the weakness in Megawide’s traditional growth engines—the construction business, which was mostly inactive during the quarantine season, and airport operations, which suffered from international and local travel bans.

The construction business maintained a healthy order book of P48 billion despite the absence of new contracts due to the slowdown in property development and project launches from real estate players. The company, however, is close to securing new contracts in the second half of the year, worth at least approximately P10 billion, to beef up its order book. (PR)


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