Megawide losses balloon by 451%

Megawide Construction Corporation reported that its attributable net loss ballooned to P445.25 billion in the first nine months of the year, a 451 percent spike from losses of P80.8 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated net loss rose 90 percent to P970 million in the first nine months of 2022 from the P510 million loss in the same period last year.

Megawide said its steep losses are “due to a higher loss contribution from the airport business as well as landport operations.” It added that, “operating profit increased slightly by 5 percent or P43 million but the impact of additional expenses from other charges – net and tax expense resulted (in) the higher net loss in 2022.”

Other charges jumped 56 percent to P1.8 billion from year-ago levels due to higher interest costs on loans arising from successive policy rate hikes during the year and the absence of a one-time gain of P208 million recognized in 2021.

Consolidated revenues for the period inched up 3 percent to P11.81 billion. The increase was mainly related to the airport segment, which showed significant recovery during the period, posting a 206 percent increase or P754 million.

Construction revenues amounted to P10.32 billion and contributed 88 percent to the consolidated revenues. The segment experienced slowdown of operations as certain contracts were under re- negotiation due to the impact of rising raw material prices and interest rates.

“The airport business remains optimistic of a turnaround as vaccination has contained the virus, encouraging global and local air travel,” Megawide said.

Revenue during the period amounted to P1.1 billion and contributed 9 percent to the total consolidated revenue.

Passenger volume more than doubled from last year’s pandemic level, although still fell short of pre-pandemic levels, with domestic passenger volume, which comprised 90 percent of traffic, rising to 3.3 million from last year’s 660,000 and international passenger volume soaring to 370,000 thousand from the previous year’s 10,000.

Airport merchandising segment, which is ancillary to airport operations, likewise experienced an 806 percent improvement in sales to P93 million from P10 million last year.

Landport operations delivered revenue of P276 million from office towers and commercial spaces and contributed 2 percent to the total consolidated revenues.

The clamp down on Philippine Offshore Gaming Operators (POGO) continue to put pressure on office vacancy and lease rates, affecting tenancy at PITX and translated to lower revenues from the same period last year.

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The article was originally published in Manila Bulletin and written by James A. Loyola