Infrastructure developer Megawide Construction Corporation said Mactan Cebu International Airport (MCIA) sustained its strong revenue growth in the third quarter of 2019.
Revenues increased by 25% to P2.7 billion in the first nine months of 2019, with growth driven by all segments, the company said.
Quarterly revenues at the airport have averaged P900 million. In the second quarter of 2019, Megawide said the MCIA contributed revenues of P904 million, a slight increase from the P892 million in the first quarter.
Passenger traffic continued to grow in the third quarter, with international passenger volume reaching a record level of 1.1 million. The highest number of international passengers to date was 402,763 in August.
This led to a corresponding 23% increase in revenues from the share of Passenger Service Charge (PSC).
Megawide said international passengers grew 10% while domestic increased 9% to deliver a combined 10% growth year-on-year to 9.48 million passengers.
The Mactan Airport currently has the capacity to host 12.5 million. Plans for a third passenger terminal building have been revealed to bring capacity to 35 million passengers a year by 2025.
Air traffic volume likewise cruised to a 6% improvement, with international and domestic traffic up 9% and 5%, respectively.
During the period, new flights were commissioned from the MCIA, which included Philippines Air Asia’s Cebu-Kaohsiung, Pan Pacific’s charter Qingdao-Cebu, Jeju Air’s Cebu-Daegu routes, and the re-launch of Cebgo’s Cebu-Busuanga route.
International airlines likewise increased flight frequencies in the third quarter, including China Eastern’s Cebu-Guangzhou and Eva Air’s Taipei-Cebu. Jin Air, meanwhile, increased its capacities for the Busan-Cebu amd Incheon-Cebu route.
Non-aero or commercial revenues increased by 29%, while aero-related revenues jumped 19%.
Full operations of commercial spaces at the newly-opened Terminal 2 and the first phase of Terminal 1 renovations drove the non-aero segment, while higher air traffic boosted the aero-related side.
Meanwhile, EBITDA was recorded at a healthy level of P1.7 billion, up by 9% year on year.
“The opening of the initial renovated areas in Terminal 1 added 2,200 sq m. to our total commercial gross leasable area (GLA) this year. By next year, Phase 2, together with the Airport Village, will be completed, which will add 2,200 sq m more of GLA. All of these will provide the base for stronger non- aero revenues moving forward,” said Edgar Saavedra, Megawide chairman and CEO.
Megawide, a Filipino company, holds 60% equity in GMR Megawide Cebu Airport Corporation, its joint venture with India’s GMR Infrastructure which operates the MCIA terminal.
The company said it generated consolidated revenues of P13.7 billion during the first nine months of 2019, 7% higher compared with P12.8 billion in the same period last year.
Its core business, construction, continued to lead all other business segments, contributing P10.5 billion.
In the third quarter alone, consolidated revenues accelerated to P5.5 billion from P4.6 billion in the second quarter, as the company sustained the revenue momentum of its portfolio since the start of the year. (Ventures Cebu)