MAHB registers 66.36% drop in Q1 earnings

PETALING JAYA: Airports Holdings Bhd’s (MAHB) net profit for the first quarter ended March 31, 2019 plunged 66.36% to RM149.58 million from RM444.60 million a year ago due to one-off gains recorded a year ago.

In a filing with Bursa Malaysia, MAHB said the one-off gains recorded last year were in relation to the fair valuation of investment in GMR Hyderabad International Airport Limited amounting to RM258.4 million and a gain on disposal of investment in GMR Male Private Limited amounting to RM28.2 million.

Excluding the one-off gains, the group’s pre-tax profit fell by 11.6% year-on-year due to higher expenditure, mainly on utilities as a result of higher tariff effective July 2018 and maintenance recorded during the period.

The airport operator’s Malaysian operations saw a 60.8% drop in pre-tax profit to RM212.7 million. Excluding the one-off gains recorded last year, the pre-tax profit was lower by 17%.

Its Turkey operations’ pre-tax loss narrowed to RM51.7 million from a net loss of RM76.6 million a year ago while Qatar operations recorded a 44.6% drop in pre-tax profit to RM3.6 million.

During the quarter, MAHB’s share of associate’s profits amounted to RM2.4 million compared with losses of RM400,000 a year ago, due to higher contribution from MFMA Development Sdn Bhd and Aviation Fuelling System Sdn Bhd.

Share of joint ventures’ profits amounted to RM4.7 million compared with RM2.9 million a year ago due to higher contribution from Segi Astana Sdn Bhd.

Meanwhile, revenue for the quarter rose 3% to RM1.25 billion from RM1.22 billion a year ago on the back of higher overall growth of 3.7%.

Revenue from airport operations grew 2.5% to RM1.17 billion while revenue from aeronautical segment grew 9.9% to RM646.5 million.

Malaysian operations recorded passenger growth of 3.7% to 25.3 million passengers from 24.4 million passengers a year ago while passenger traffic from Turkey operations grew 3.8% to 8.1 million passengers from 7.8 million passengers a year ago.

Non-aeronautical segment fell marginally by 0.6% year-on-year to RM525.6 million while non-airport operations grew 10.4% year-on-year due to higher revenue from the project segment.

Overall, Malaysian operations recorded of 2.6% year-on-year to RM931.7 million while Turkey and Qatar operations recorded of 2.6% to RM279.7 million and 17.5% to RM40.9 million respectively.

MAHB said its network of airports, including Istanbul Sabiha Gokcen International Airport (ISGIA), recorded 33.4 million passengers during the quarter, representing a year-on-year growth of 3.7%.

Traffic for international passengers improved by 3.9% while traffic for domestic passengers increased by 3.6% during the quarter. Aircraft movements improved by 1.1% with both international and domestic aircraft movements rising 1.4% and 0.9% respectively.

Moving forward, MAHB expects future seat capacity filings by airlines to remain above expectations for its Malaysian operations.

“MAHB remains optimistic that the projected 4.9% growth for 2019 will be achieved. The domestic traffic correction and consolidation is expected to continue while the international sector may also see improvement,” it said.

For its overseas operations, it expects ISGIA to maintain its growth momentum this year especially for international passenger traffic.

Source: The Sun Daily

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