Malaysia Airports Holdings Berhad Records RM190.0 Million Net Profit

Malaysia Airports ·  May 30 12:00

5 consecutive quarters of net profits recorded at both Malaysia and Türkiye operations

SEPANG – The Malaysia Airports Holdings Berhad Group (Malaysia Airports or the Group) today reported its financial results for the quarter ended 31 March 2024 (1Q24), reporting revenue of RM1.35 billion, 30.6% higher compared to the same period last year (1Q23). The Group's Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA) rose to RM671.8 million from RM441.9 million a year ago, driven by international passenger traffic that improved by 33.9% compared to 1Q23. As of the end of 1Q24, group passenger traffic has recovered by 93.5% against pre-pandemic levels.

The Group's Malaysia operations saw 21.8 million passenger movements in 1Q24, a 16.5% increase from 1Q23, with an 85.9% overall recovery against pre-pandemic levels. Meanwhile, its Türkiye operations saw an increase of 18.2% in passenger movements from 1Q23 to 9.5 million, mainly driven by a 22.1% growth in its international passenger movements.

The Group's cost moderately increased in tandem with the increase in passenger traffic and corresponding operational requirements. Nevertheless, its core cost per passenger improved to RM15.59 per passenger compared to RM16.48 per passenger in 1Q23, testament to the Group's relentless pursuit of managing its costs and increasing its efficiency and productivity. As a result, its EBITDA improved by 52.0% to RM671.8 million from RM441.9 million a year ago. Coupled with positive share of results from all of its associates and JVs, the Group recorded a net profit position of RM190.0 million compared to RM58.2 million in 1Q23.

Acting Group Chief Executive Officer, Mohamed bin Rastam Shahrom said that in tandem with the sound financial performance, the airport operator is intensifying its focus on the core of its business, "The majority of our initiatives are centred on enhancing airport experience for all users. The Aerotrain and baggage handling system replacements are underway, and the interim facilities have been upgraded. We are prioritising the digitalisation of our airports, with more biometric self check-in and self bag-drop facilities to be installed at KLIA this year and other major airports thereafter. To ease the congestion at KLIA, 14 additional immigration counters were added last year, improving the passenger experience. We have also refurbished 25 suraus in Terminal 1, with Terminal 2 next in line. These initiatives, particularly at KLIA, aim to make the passenger journey more comfortable and enjoyable."

"The continued recovery in traffic, along with the reimagining of airport retail experience and various other non-aeronautical business strategies, has sustained our profitability and positive cashflows for five consecutive quarters. Our meticulous and proactive efforts to maintain cost efficiencies have positioned us well to undertake strategic developments that will modernise and expand our airports, fuelling further growth and capitalising on the positive traffic trajectory and growing demands for air travel."

The recently signed OAs with the Government provide a clear investment recovery framework for MAHB to pursue viable airport developments that will be both beneficial to the passengers and the country, as well as provide valuable earning accretion opportunities to the Group. The expansion of Penang International Airport shall be one of the first deliverables under the new OAs for which the Group has agreed with the Government on the recovery mechanism, based upon a pre-agreed rate of return. MAVCOM also recently gazetted new Aviation Service Charges for June 2024 to December 2026, with a supplemental Loss Capitalisation Mechanism embedded, ensuring improved cost recovery in running the network of airports.

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