MCIA nets P646 million in Q1

Mactan-Cebu International Airport’s operations posted a P646.1 million in revenues in the first quarter 2018, as its private operator sees a stronger airport business moving forward with the opening of the airport's Terminal 2 next month.

In its disclosure to the Philippine Stock Exchange, Megawide Construction Corp. said the Q1 revenues were 13 percent higher yearon-year from P569.7 million.

Net income jumped 37 percent to P369.7 million compared to the P270.7 million posted in the same period last year. Net income margin improved to 57 percent from 48 percent.

"This is on the back of an 11 percent growth in passenger volume, with international outperforming domestic in terms of passenger growth at 14 percent and 10 percent, respectively," the listed company said.

Together with Bangalore-based GMR Infrastructure Ltd, Megawide forms part of the consortium GMR-Megawide Cebu Airport Corp (GMCAC), MCIA's private operator.

Non-aero or commercial revenues, which contributed 33 percent to the total, grew by 18 percent to P212 million. Passenger service charge, representing 55 percent of airport revenues, increased 11 percent to P357 million driven by the double-digit growth in passenger throughput.

The remaining 12 percent accounts for aero-related revenues, which increased by 12 percent to P77 million.

“The solid performance of our airport segment will be supported by the completion of Terminal 2 in June of this year,” Megawide chairman and CEO Edgar Saavedra was quoted as saying in the disclosure.

“This will open more opportunities to steer this segment to even greater heights. Thriving tourism will also help boost growth as we position MCIA as the country’s main tourist hub with its strategic geographic location at the center of the Philippines," he noted.

With the growth in revenues and drop in operating expenses, airport EBITDA (earnings before interest, tax, depreciation and amortization) grew 23 percent to P480.5 million from P389.4 million at the end of the quarter. This led to an EBITDA margin of 74 percent from 68 percent last year.

In the first three months, MCIA handled 2.7 million passengers, with domestic passengers representing 65 percent and international passengers at 35 percent.

Air traffic volume increased by 21 percent, with a 15 percent and 22 percent growth in international and domestic traffic respectively.

The over-all increase in passenger traffic was brought about by new airlines and routes in both international and domestic sectors.

In first quarter of 2018, MCIA added two international flights to Busan and Guangzhou and two domestic destinations to Ormoc and Catbalogan (via Biliran) serviced by Air Juan.

To date, MCIA is serving 32 domestic and 22 international destinations, with eight local and 17 international airline partners.

Shalimar Tamano, director of the Department of Tourism in Central Visayas, said the new airport passenger terminal should bring in more tourists to Cebu and other destinations in the region.

He said he was also looking forward to the opening of more direct international routes from Cebu as the airport expansion is seen to lure more airlines to mount flights from the country’s second busiest airport.

He said the airport would also be able to accommodate more bigger aircraft.

Cebu is continuously promoted as an alternative international gateway to the Philippines, given its strategic geographical location and proximity to tourist destinations in southern Philippines.

GMCAC won in 2014 the 25-year public private partnership (PPP) contract to build, operate and maintain the new MCIA terminal for some P17.52 billion.

The new terminal building will have a capacity of about 13 million passengers annually and will serve international operations.

Last June 2017, the consortium submitted a P208-billion unsolicited proposal for MCIA's 50-year development.

For the next two years, the firm is planning to introduce new routes that will connect Cebu to Australia, Europe and other Southeast Asian countries, as well as expand routes to China, Japan and South Korea. The company is also targeting new flights to North Asia, the Middle East, North America, and Europe. —