Megawide suffers first loss of ₱398 M

Megawide Construction Corporation reported a net attributable loss of ₱398 million for the first half of 2020—the first in the company’s history.

In a disclosure, the firm said the loss is due to interest expenses and non-cash charges amounting to a combined ₱1.12 billion “associated largely with the MactanCebu International Airport (MCIA) concession.”

Megawide’s consolidated revenues during the period was 21 percent lower from the previous year at ₱6.44 billion, with construction contributing ₱4.88 billion, airport operations accounting for ₱888 million, and airport merchandising chipping in ₱69 million.

Its landport, the Parañaque Integrated Terminal Exchange (PITX), delivered revenues of ₱599 million and a net income of ₱255 million for the first six months of the year.

The newest segment of Megawide’s three-legged business portfolio also contributed 40 percent to the Group’s consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) during the period, from practically nil in the same period last year.

“When we inaugurated PITX two years ago, we were very excited about its social impact and business prospects. Barely one year of fullblown terminal and commercial operations, we are starting to reap the benefits of this undertaking – not just for the Company but more importantly for our commuting public,” Megawide Chairman and CEO Edgar Saavedra, said.

The landport’s performance cushioned the weakness in Megawide’s traditional growth engines – the construction business, which was mostly inactive during the quarantine season, and airport operations, which suffered from international and local travel bans.