MEGAWIDE REVENUES HIT P9 BILLION
Resurgence in the construction business enabled Megawide Construction Corporation (Megawide or the Company) to record revenues of P2.62 billion for the third quarter of this year, representing an 80% improvement from P1.45 billion revenues in the second quarter, when the Philippines was largely still under a series of lockdowns due to the COVID-19 public health crisis.
Airport operations at the Mactan Cebu International Airport meanwhile recorded lower passenger volumes of 771,693 and 1.80 million in the first nine months of 2020 for the international and domestic segments, respectively.
The landport at the Paranaque Integrated Terminal Exchange continue to host an increasing number of commuters at an average of 42,000 daily – around 70% of pre-COVID levels – as more bus routes and P2P destinations were directed to have PITX as their point of convergence.
The relaxed General Community Quarantine during most of the third quarter facilitated more people and supply chain mobility, which slowly opened up the economy.
“The loosening of lockdown restrictions across the Philippines, which has enabled a limited degree of widespread economic activity to begin after several months of standstill. This enabled Megawide to restart active development, especially for the construction segment and it’s significant multiplier effect to serve as catalyst for growth,” said Edgar Saavedra, Megawide Chairman and CEO.
“Every day, economic activity resumes across the Philippines and this has a beneficial impact upon our ability to ramp up work across our project portfolio. We are confident this trajectory will continue as we are about the overall prospects for the Philippine economy at large as we build back from the pandemic,” added Saavedra.
For the first nine months of 2020, Megawide recorded revenues of P9.03 billion and an earnings before interest taxes depreciation and amortization (EBITDA) of P1.75 billion.
Construction contributed 82% at P7.41 billion, followed by the combined airport operations and merchandising at P1.07 billion and landport at P552 million. The Company’s construction segment led the quarter-on-quarter revenue improvement with P2.55 billion recorded revenues – more than double the P1.07 billion recorded in the previous quarter – accounting for all but 3% of total revenues for the period.
The airport business also reflected a better performance quarter-on-quarter with P116 million in revenues from P74 million. The construction business still maintained a healthy order book of P40.7 billion despite the absence of new major contracts and suspended projects due to the slowdown in property development and project launches from real estate players.