Megawide Construction Corp. on Tuesday posted consolidated net income of P362.61 million in the first six months of the year, a reversal from P441.14 million net loss last year.
Consolidated revenue grew 51 percent to P11.31 billion from last year’s P7.46 billion, of which construction operations formed the bulk at P10.97 billion and landport operations contributed the balance of P191 million.
“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 (MMSP), which has yet to commence. 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,” Edgar Saavedra, company president and CEO, said.
The company’s order book of P50 billion remains healthy and diverse. More than half of the projects are still in the 0 to 20 percent completion stage, providing a significant balance for bookable revenues in the coming periods.
Management expects to gradually reap the benefits of its acquisition of affiliate PH1 World Developers Inc. in the coming years in terms of revenue stability and profitability.
“Our property development arm, PH1 World, will be a significant contributor to our consolidated performance moving forward. 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,” Saavedra said.
Average daily foot traffic at the Paranaque Integrated Terminal Exchange (PITX) as of June breached the 100,000 level anew, after falling below this threshold in the first few months of the year.
With the improvement in foot traffic came the increase in passenger expense to P35.4, its highest to date, from P28.5 per passenger at the start of the year. This was attributed to strong leasing performance of 82 percent occupancy and robust sales from new tenants like Dunkin Donuts, Bonchon, Tim Horton’s, Highlands Coffee, Watsons and many more.
The commercial team is looking forward to welcome other known brands such as Robinsons Supermarket, KFC, Sbarro, Ricos Lechon, HapChan and Puma.
Also, despite the challenges in the office segment, tower occupancy improve
