Megawide swings to net profit as revenues double

MEGAWIDE CONSTRUCTION Corp. booked a second-quarter attributable net income of P370.28 million, a reversal of the P64.93-million loss incurred a year ago, as revenues for the period doubled.
From April to June, the company’s top line reached P6.76 billion, which is nearly twice last year’s P3.47 billion.
“Construction is on its way to recovery and we are starting to see it. We have yet to capitalize on the big-ticket infrastructure projects in our portfolio, such as the Metro Manila Subway Project, which has yet to commence,” Megawide President and Chief Executive Officer Edgar B. Saavedra said in a statement.
“Our landport is also recovering in terms of foot traffic, office occupancy, and commercial sales. All in all, we are confident of sustaining the momentum for the remainder of the year,” he said.
Megawide’s construction operations were still the biggest revenue contributor, accounting for P6.7 billion as it doubled last year’s P3.28 billion.
The construction segment cushioned the 15.7% decline in revenues from landport operations, which amounted to P100.89 million for the April-to-June period from P119.63 million last year.
However, the company said the average daily foot traffic at the Parañaque Integrated Terminal Exchange breached the 100,000 level in June.
It added that it was able to post its highest average passenger spend at P35.4 from the P28.5 seen at the beginning of the year.
The company’s direct costs also doubled in the three months ending in June, totaling P5.83 billion from P2.88 billion in the year prior.
In the first half, the company’s attributable net income reached P363.16 million, a turnaround from the P125.68-million loss seen in the previous year.
Total revenues hit P11.16 billion in the January-to-June period, reflecting a 52.4% increase from the P7.32 billion seen a year ago.
Year-to-date revenues from construction operations reached P10.97 billion, up by 55.1% from the P7.07 billion booked last year.
Landport operations accounted for P191.05 million of the company’s first-half topline, reflecting a 23.7% decline from the P250.4-million revenues registered in 2022.
Direct costs in the first semester amounted to P9.78 billion, an increase of 58.7% from the P6.16 billion seen last year.
As of the end of the second quarter, the company said that its order book of P50 billion remained “very healthy and diverse.”
“More than half of the projects are still in the 0-20% completion stage, providing a significant balance for bookable revenues in the coming periods,” it added.
Mr. Saavedra expects Megawide to gradually reap the benefits from its acquisition of affiliate PH1 World Developers, Inc.
“Aside from generating synergies and providing long-term project visibility, PH1 World’s healthy pipeline will also strengthen our order book quality by de-risking it from contractual and collection issues,” he said.
On Tuesday, shares in the company climbed nine centavos or 2.85% to P3.25 each. — Justine Irish D. Tabile