Megawide Construction Corp. (Megawide or the Company) reported revenues of P19.8 billion in FY2019, 24% higher than the previous year, with strong recovery by the construction business, continued momentum of airport operations, and positive traction from landport operations.
“We are building on the strong performance of all our segments for the full year of 2019 and the first quarter of this year,” said Edgar Saavedra, Megawide chairman and CEO.
The robust performance continued in the first quarter of 2020 as revenues went up by 42% to P5.1 billion. Net profit for the period was recorded at P206 million amid the onset of the COVID-19 global pandemic.
Construction recovery
The construction segment posted a 20% growth in revenue to P15.2 billion in FY2019 and contributed 77% to the Group’s total.
In the first quarter of 2020, the construction business continued to rebound as revenues increased 52% year-on-year to P3.9 billion, despite the imposition of the enhanced community quarantine (ECQ) across Luzon in the second half of March.
Airport operations slowdown
But the global onset of COVID-19 affected both international and domestic travel early in the year with the imposition of travel restrictions. As a result, airport revenues for Terminal 2 at Mactan-Cebu International Airport Mactan declined by 10% to P803 million in the first three months of 2020 as total passenger volume fell by 21% to 2.4 million.
Landport gaining traction
The Parañaque Integrated Transport Exchange (PITX) continued to gain more traction in 2019 as revenues reached P555 million from P18 million in 2018.
Since its opening last November 2018, passenger foot traffic steadily increased. The number of trips from the terminal (shown in photo) accelerated to almost 5,200 trips daily from 3,300 at the start of the year, consisting of city, provincial and long-haul buses; modern and traditional jeepneys; and domestic shuttle services.
In the first three months of 2020, the landport delivered P287 million in revenues and significantly compensated for the slowdown in airport operations.