Megawide profit up 2-fold in H1

MANILA, Philippines - Megawide Corp. reported a more than two-fold increase in first semester earnings to P474 million, mainly driven by higher revenues.

In a financial report submitted to the Philippine Stock Exchange, Megawide said gross revenues grew 31 percent to P3.64 billion during the period, boosted by ongoing and newly-started projects Linear, Studio City and Studio Zen of Filinvest Land, as well as Jazz Residences Phase 2 and Grass Residences Tower 2 of SM Development Corp.

Gross profit amounted to P608.6 million, up 57 percent year on year while operating income increased 69 percent to P486.86 million.

Contract costs reached P3.03 billion, 26.8 percent more than the previous period’s level of P2.39 billion.

Megawide, partly owned by the family of retail magnate Henry Sy, bagged the right to construct 2,885 classrooms in Region III and 4,259 classrooms in Region IV-A. The government will make annual lease payments of P522.98 million for Region III classrooms and P760.49 million for Region IV-A classrooms.

Megawide, which is known for developing most of SMDC’s residential condominium projects, has been diversifying into other segments of the market to broaden its investment portfolio. The company earlier said it would participate in road and infrastructure projects including the Light Railway Transit Line 1 extension project and the NAIA expressway.