Megawide sees profit boost from new deals

MANILA, Philippines — Construction conglomerate Megawide expects an income boost this year from nearly P10 billion worth of new contracts.

In a disclosure, the company said as of June 2019, it has signed seven new projects worth P9.8 billion.

This keeps the company on track to meeting its P20-billion target for new contracts, comprising of residential, office and commercial projects.

Last year, Megawide’s construction business contributed 45 percent to consolidated net income, while 55 percent came from the combined airport operations and merchandising segments.

This year, construction’s share to consolidated net income is seen to rise to more than 50 percent and boost net income attributable to Megawide shareholders.

This is due to an expected recovery of the segment from the cyclical downturn in 2018.

Airport operations, meanwhile, are forecast to sustain a strong performance on the back of the growing tourism industry in the country, particularly in Southern Philippines.