MacroAsia of Lucio Tan diversifying into telecom

MacroAsia Corp. said Wednesday it is venturing into the telecom business by providing digital radio trunking services in various airports in the country.

The airport service provider led by tycoon Lucio Tan said in a regulatory filing it invested in a digital radio trunking system in several airports using a frequency that was made available by the government to the aviation group.

“With the impending completion of regulatory requirements and the commissioning of the network, this investment will be operational in the first half of 2021, opening new avenues for cost control and revenue growth,” the company said.

The radio trunking requirements of the group in various airports are provided by third-party providers.

MacroAsia’s businesses include aircraft maintenance, repair and overhaul, water, mining, property development, airline catering services, ground handling, air taxi services, and aviation school.

The company said its aviation-related business units continued to be impacted by the global downturn in air travel amid the pandemic.

“In coping with the business downturn, the group implemented cost-containment and cash-conservation measures, highlighted by an aggressive rightsizing program in line with the airport business volumes,” MacroAsia said.

“Other than the sustainable cost leadership efforts on aviation-related businesses, the group has also focused on growing its non-airline related business [water distribution and non-airline food business],” it said.

The group recorded consolidated net loss of P1.80 billion in 2020, a reversal of the P1.19-billion consolidated net income in 2019.

Revenues from in-flight catering declined by 67 percent to P960.9 million last year from 2.90 billion in 2019.

It said the decline in revenue was aligned with the 67-percent drop in meal count from 13.8 million to 4.5 million as air passenger traffic slowed as a result of the COVID-19 pandemic.

Revenues from ground-handling and aviation services also declined 63 percent in 2020 to P1.04 billion from P2.82 billion in 2019.

Flights handled decreased by 63 percent from 197,079 in 2019 to 72,089 flights in 2020.

It said the number of flights slowly improved as quarantine measures were eased.

Revenues from water operations went down by 36 percent to P221.42 million last year from P347.60 million in 2019 because of the downturn in commercial water sales in Boracay, which was impacted by the tourism closure due to COVID-19 restrictions and termination of bulk water supply contract of SUMMA in Marilao, Bulacan.

Topics: MacroAsia Corp. , telecom business , digital radio trunking services
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