SAAVEDRA-LED Megawide Construction Corp. trimmed its net loss for the third quarter after a surge in revenues.
The company said in a stock exchange disclosure on Wednesday that its July-to-September net loss shrunk to P30.06 million from P529.28 million a year ago.
Megawide’s revenues in the third quarter improved 34% to P4.4 billion from P3.27 billion last year led by its construction operations, which grew 30% to P4.21 billion from P3.25 billion.
From January to September, Megawide said its consolidated net income hit P332.5 million, a turnaround from the P970.4 million net loss in the same period last year.
Megawide’s nine-month revenues rose 47% to P15.6 billion led by increases in its construction, landport, and real estate businesses.
The company’s construction segment, which accounted for 97% of total revenues, posted a 47% growth in revenues to P15.2 billion.
“Our growth trajectory remains intact, with our pursuit of big-ticket infrastructure projects, like the Malolos Clark Railway Project and soon the Metro Manila Subway, and high-value commercial developments, such as the Westside City Resorts Complex, materializing,” Megawide President and Chief Executive Officer Edgar B. Saavedra said.
“We are confident that over the long-term, this direction will unlock a strong and steady earnings momentum for the engineering, procurement, and construction (EPC) segment,” he added.
Megawide’s landport operations at the Parañaque Integrated Terminal Exchange (PITX), which contributed 2% of the top line, had a 23% increase in revenues to P339.7 million as of September.
“PITX continues to serve as a key junction for commuters, through additional long-haul trips to various destinations across the country and as a strategic link to the EDSA Bus carousel, resulting in high passenger throughput of more than 106,000 daily as of September,” PITX President Jaime Raphael C. Feliciano said.
PITX’s commercial occupancy reached 80% while average passenger spending in September was at P36.9, up 61% from last year and exceeding the previous record of P35.5 in June.
“The trend is expected to improve further as new offerings, such as Tim Hortons and Robinson’s Easymart, opened their doors to PITX patrons in the third quarter of the year, offering a more holistic commuting experience,” Megawide said.
Office occupancy rates in PITX doubled to 65% as of end-September from 33% at the start of 2023, and is expected to benefit from the scheduled launch of Manila Light Rail Transit (LRT) Line 1 Asia World Station by next year.
“By next year, the LRT1 Asia World Station will be operational and direct access to PITX will strengthen the facility’s value proposition as an office hub and convergence point for workers and travelers alike,” Megawide said.
Megawide said its nine-month real estate revenue reached P36.5 million, representing the two months’ share by real estate firm PH1 World Developers, Inc., which was acquired in July.
“The segment is expected to contribute more significantly to consolidated revenues in the next two to three years, as new and existing developments steadily reach payment milestones and increase construction progress,” Megawide said.
In September, PH1 launched two new projects in the vertical and horizontal spaces, the Modan Lofts in Ortigas Hills, valued at about P8.7 billion, and the Northscapes at San Jose del Monte, Bulacan, with an estimated value of P1.9 billion for the first phase, respectively.
On Wednesday, shares of Megawide at the local bourse closed unchanged at P3.17 each. — Revin Mikhael D. Ochave