Megawide Posts Higher Revenues

Megawide Construction Corporation today disclosed consolidated revenues of P15.4 billion in 2021, 21% higher year-on-year, amid a persistent COVID-19 pandemic.

Photo Insert: The construction segment rallied the group and recorded revenues of P14.3 billion, 32% more than the previous year.

The construction segment rallied the group and recorded revenues of P14.3 billion, 32% more than the previous year.

The airport and land port businesses, on the other hand, continued to be affected by restricted travel and transport as well as limited economic activities, resulting in weaker financial performances.

Consolidated earnings before interest, taxes, depreciation, and amortization or EBITDA amounted to P2.84 billion as airport operations generated losses. With a more stable operating environment, the construction segment recorded a net income of P401 million and more than four times the P93 million income posted in the previous year.

However, weak results from the other business segments resulted in a consolidated net loss of P893 million, with net loss attributable to equity holders of the Parent tapering to P343 million.

“The past two years under the pandemic were very difficult, as our financial performance was severely affected by restricted travel and transport. In addition, the virus’ evolving variants ushered in a fresh set of lockdowns and discouraged a return to normalcy. Amid all these, we relentlessly pursue programs that will strengthen our core businesses and make them more cycle-resistant to deliver for us stable earnings year in and year out,” Edgar Saavedra, Chairman and CEO of Megawide, said.

The construction segment remained resilient but Megawide sees better days ahead as the winning bids for the big-ticket infrastructure projects, such as the Metro Manila Subway and North-South Commuter Line, have yet to be officially announced.

“We are also looking forward to a better performance for our airport operations, with the national elections, the campaign period associated with it, and summer season driving domestic traffic. Hopefully, with a higher vaccination rate nationwide and managed infections this year, travel will be restored, and return to pre-pandemic activities will be accelerated,” Saavedra added.

Recovery in travel and transport Megawide is already seeing initial signs of recovery in its airport asset the Mactan Cebu International Airport (MCIA), where January-February traffic showed a 170% improvement from the same period in 2021, data from the Mactan Cebu International Airport Authority (MCIAA) show.

The International Air Transport Association (IATA) predicts that global air travel will be 80-90% of its pre-pandemic levels this year and next, with prospects of exceeding 2019 figures by 2024.

That being said, this revenge travel should present a huge upside to MCIA, which currently operates at 20-30% of pre-COVID levels,” noted Louie Ferrer, Megawide’s Executive Director for Infrastructure Development and GMR-Megawide Cebu Airport Corporation’s (GMCAC’s) President.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic