MAHB posts higher profit on Hyderabad airport

The airport operator’s 1Q18 revenue rises 11.2% YoY to RM1.2b with EPS at 25.9 sen


MALAYSIA Airports Holdings Bhd’s (MAHB) net profit surged 590% year-on-year (YoY) to RM444.6 million for its first quarter ended March 31, 2018 (1Q18), on unrealised gain on its investment in an Indian airport.

In an exchange filing on Monday, MAHB noted the gain through its investment in GMR Hyderabad International Airport Ltd (GHIAL) amounted to RM258.4 million.

Its cost of operations increased by 3.5% YoY due to the higher construction cost of the boarding hall expansion in Istanbul Sabiha Gokcen International Airport (ISGIA) in Turkey of RM25.8 million.

The airport operator’s revenue for 1Q18 grew 11.2% YoY to RM1.22 billion as its airport operations posted a 12.2% YoY revenue growth to RM1.14 billion, driven by the aeronautical and non-aeronautical divisions.

“Overall, Malaysian operations recorded a revenue of RM908.3 million with 8.8% YoY growth, while Turkey’s operations recorded a revenue growth of 22.3% YoY to RM272.7 million.

“However, Qatar’s operations recorded a slight decline in revenue by 1.1% YoY to RM34.8 million,” it said.

MAHB’s local operation posted a passenger growth of 3.4% YoY to 24.4 million passengers. “The growth in the international passenger traffic locally was contributed by four regional international airports, which had performed exceptionally well in March 2018.”

The international passenger locally was recorded at 13 million, signalling a 10.2% YoY increase, while domestic passengers declined 3.4% YoY to 11.4 million passengers.

Aircraft movements grew by 1.2% as international movements improved by 12.4%, while domestic movements declined 5.4% for the period.

MAHB said passenger traffic for ISGIA rose 18.2% to 7.8 million passengers from 6.6 million passengers last year, as both international and domestic traffic increased 19% and 17.8% respectively.

“ISGIA performance will likely maintain a double-digit growth momentum for both domestic and international passenger traffic in the immediate term,” it said.

MAHB’s non-aeronautical division revenue grew 7.6% to RM528.9 million, supported by the stronger sales registered by concessionaires and retailers.

Its non-airport operations declined slightly by 2.8% due to lower revenue from agriculture business, resulting from the lower fresh fruits bunch price and lesser project and repair maintenance works.

Earnings per share (EPS) for the period was 25.94 sen, compared to 3.08 sen a year ago.