Megawide trims losses after airport stake sale

Megawide Construction Corporation reduced its consolidated net loss by 96 percent in the first quarter of 2023 to ₱7.4 million from losses of ₱192.2 million in the same period last year with the reduction of its stake in the Mactan International Airport.

In a disclosure to the Philippine Stock Exchange, the firm said operations from its airport business and its ancillary, airport merchandising, where no longer being consolidated by the Group in 2023 after the sale of a one-third of the business to the Aboitiz Group.

Megawide still owns a third plus 1 share of Gmr-megawide Cebu Airport Corporation which operates the Mactan airport. Consolidated revenues increased by 11 percent to ₱4.4 billion in the first quarter of 2023 from ₱3.9 billion in the same of 2022.

Construction revenues amounted to ₱4.3 billion and contributed 98 percent to the consolidated revenues. The construction segment has maintained its momentum in delivering projects on time at the start of the year.

With a healthy orderbook, Megawide said it is in the position to work on its order book, which are expected to be completed within two to three years, from various projects.

Landport operations, meanwhile, delivered revenue of ₱90.2 million from office towers and commercial spaces and contributed 2 percent to the total consolidated revenues.

Occupancy rates continue to be depressed due to the oversupply in the market, resulting in lower lease income compared to the first quarter of 2022.

The Company, however, is confident that it will be able to lease out the spaces gradually during the course of the year as the environment continues to improve and the Team extensively explores alternative schemes.

Amid this predicament, PITX Parañaque Integrated Terminal Exchange continued to serve as a transportation convergence point to serve commuters to and from different places of work, resulting in high passenger throughput.

Direct costs increased by 20 percent to ₱3.95 billion mainly related to rising prices of raw materials, services and higher labor costs, along with higher fixed-costs and depreciation expenses associated with capacity building.

Other operating expenses increased by 68 percent to ₱413 million mainly due to increase in fixed costs in support of the Company growth plans for various infrastructure and development projects that it will be undertaking.