Airport project lifts listed firm’s revenue to P1.47B

CEBU, Philippines - Megawide Construction Corp.'s operation of the Mactan-Cebu International Airport (MCIA) contributed significantly to its income growth last year.

In a disclosure to the Philippine Stock Exchange yesterday, the firm said its net income rose 66 percent to P1.47 billion in 2015, driven by a 16 percent growth in its core construction business and its first full-year earnings from the MCIA operation. "This is the highest growth posted by the company since its Initial Public Offering in 2011," it added.

Megawide said that airport operation income from MCIA contributed 34 percent or P501 million to the consolidated earnings. While the rest is attributed to its construction business.

The company posted a P1.48-billion airport operation revenue from MCIA due to strong aeronautical, commercial and rental revenues brought by a 15.5 percent increase in passenger traffic compared to 2014.

"The company, through its airport subsidiary GMR Megawide Cebu Airport Corporation, continues to embark on new airline and destination marketing initiatives to add new routes and increase passenger volume," Megawide noted.

Last month, MCIA launched at least four new international flights: Los Angeles with Philippine Airlines; Xiamen with Xiamen Airlines; Taiwan with Eva Air; and Dubai with Emirates.

"GMCAC is also undertaking renovations in Terminal 1 to improve operating efficiencies and lessen passenger processing time," it said.

In April 2014, GMCAC, the consortium between Megawide and Bangalore-based GMR Infrastructure Ltd., won the P17.5-billion concession to rehabilitate and manage MCIA for 25 years, including the construction of a second terminal for international passengers. The Terminal 2 construction is ongoing and is expected to be operational by end of June 2018.

GMCAC took over operations of MCIA in November 2014.

Shares of Megawide were last traded at P6.73 per share. (FREEMAN)