SAAVEDRA-LED infrastructure conglomerate Megawide Construction Corp. recorded a 30% drop in its attributable net income for the second quarter (Q2) to P258.66 million, compared with P370.28 million last year.
Second-quarter revenue fell by 8.7% to P6.21 billion, compared with P6.8 billion a year ago, Megawide said in a regulatory filing on Wednesday.
For the first half, Megawide said its net income rose by 21% to P438 million, driven by its construction and real estate businesses.
The company posted P11.4 billion in first-half revenue, up by 2% from P11.16 billion last year, led by the construction segment and the initial contribution of the real estate business.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 24% to P2.6 billion, compared with P2.1 billion a year ago.
“Construction has been a significant growth driver for the economy during the period as the government continued to push for infrastructure development, complemented by a more normalized operating landscape,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.
“This benefited our integrated operations, which sustained a strong start to the year and is expected to be a key engine for Megawide’s value creation mode,” he added.
For the first half, construction revenue fell by 0.6% to P10.9 billion, compared with P10.97 billion last year, and accounted for 95% of total revenue.
The company had P8.9 billion worth of new projects during the period, including affiliate Megawide Construction Corp. – Citicore Construction, Inc., representing several locations of Citicore’s solar power plants; Contract Package-104 of the Metro Manila Subway System Project; and PH1 World Developers, Inc.’s Modan Lofts Ortigas Hills residential condominium project in Taytay, Rizal.
Megawide’s order book is worth P48 billion as of end-June, equivalent to two to three years’ worth of revenue.
The manufacturing business, consisting of the pre-cast and construction solutions segment, saw a 150% increase in revenue to P1.9 billion and contributed 17% to overall revenue.
“Our PCS business is expected to be a strong contributor moving forward, especially with higher margins associated with it and significant economies of scale potential. We believe that the growing appreciation and application of our PCS products in infrastructure, residential, and commercial developments will accelerate the unit’s income generation and boost its share in our construction business,” Mr. Saavedra said.
Real estate revenue reached P311.1 million, equivalent to 3% of total revenue, led by ongoing projects My Enso Lofts and The Hive. Newly launched projects such as Modan Lofts Ortigas Hills and Southscapes in Trece Martires contributed more than half of the P1.5 billion in sales registered during the period.
Revenue from landport operations rose by 7.4% to P205.2 million, equivalent to 2% of total revenue, led by the office towers and commercial spaces business. Foot traffic reached a record of 156,000 monthly average for June, while spending per passenger reached P34.
Occupancy in the commercial segment reached 84%, while the take-up of office towers hit 37%, which included government offices, transport services, and travel agencies as new tenants.
On Wednesday, Megawide shares were unchanged at P2.68 apiece. — Revin Mikhael D. Ochave
