Megawide swings to net loss as expenses rise

MEGAWIDE Construction Corp. swung to an attributable net loss of P112.76 million for the first quarter of the year from a profit of P2.85 million in the same period a year ago.

Despite its total revenues increasing by 12% during the quarter to P4.16 billion from P3.72 billion previously, Megawide incurred a net loss due to higher expenses, its first-quarter report showed.

Its net loss after tax widened to P278.89 million from a loss of P137.92 million in the same period last year.

“The impact of additional expenses from other charges net and tax expense resulted in the higher net loss in 2022,” the company said.

In terms of revenues, the company’s construction businesses contributed P2.79 billion, an 11% improvement from the previous year’s construction revenue.

“The construction segment has maintained its momentum in delivering projects on time despite quarantine measures at the start of the year,” the company said.

“With a healthy orderbook, the company is in the position to work on its order which are earmarked to be completed within two to three years from various projects such as Suntrust Home Developers’ Suncity West Side City project, Megaworld’s Newport Link project, and the Department of Transportation’s Malolos Clark Railway Phase 1 Project,” it added.

At the same time, the company said its landport operations delivered revenue of P131 million from office towers and commercial spaces during the period, and contributed 3% to the total consolidated revenues.

“Due to the restrictions in foreign travel, Philippine Offshore Gaming Operators experienced indefinite disruption on their operations, resulting in lower office occupancy levels and translated to 30% or P56 million lower revenue from the same period last year.”

Meanwhile, its airport segment showed “slight recovery” with an increase in revenues by 93% or P106 million. The company’s airport business “remains optimistic of a turnaround as global vaccination program has been effectively rolled out and consumers are starting to travel,” it said.

Revenue for the first quarter reached P220 million, 93% higher than the same period last year and contributed 3% to the total revenues.

The company said passenger volume more than doubled from last year’s pandemic level “although not enough to breach the pre-pandemic level” with domestic passenger volume of 590,000 from last year’s 190,000, and international passenger volume of 60,000 from last year’s 2,000. — Arjay L. Balinbin