MAHB posts record earnings of RM727.3m for FY2018

By NG MIN SHEN / Pic By TMR File

Malaysia Airports Holdings Bhd’s (MAHB) net profit for the financial year 2018 surged to RM727.3 million, fueled by unrealised gains from its shareholding in a joint-venture in India and higher overall revenue.

The airport operator’s record profit for 2018 was fueled by the unrealised gain of RM258.4 million on the fair value of investment in GMR Hyderabad International Airport Ltd. Higher overall revenue of RM200.4 million boosted the year’s earnings. MAHB’s net profit for 2017 was RM239.76 million.

Full-year revenue improved 4.3% to RM4.85 billion from RM4.65 billion registered in FY17.

“Aeronautical revenue grew 6.7% to RM2.4 billion over last year on the back of strong passenger growth. Malaysia operations recorded passenger growth of 2.3% (international: +4.2%, domestic: +0.2%) to 99 million passengers as compared to 96.8 million passengers in the previous year,” MAHB said.

But the airport operator’s earnings decline 13% to RM28.096 million in the fourth-quarter ended Dec 31, 2018 (4Q18) due to higher cost and weaker performances from its domestic and Turkey operations.

MAHB said cost rose by 3.4% year-on-year (YoY) or RM42.9 million in 4Q18 due to provision of doubtful debts, higher amortisation and depreciation, utilities and repair and maintenance cost.

Fourth-quarter revenue improved 0.5% to RM1.252 billion from RM1.246 billion previously.

The group has proposed a single tier final dividend of nine sen per share.

Its local operations saw pre-tax profit dropped to RM62.2 million, while the Turkey business posted a pre-tax loss of RM36.8 million, down 40.5% from the loss recorded the year before. Qatar operations’ pre-tax profit soared 134.6% to RM2.1 million.

Its overall airport operations recorded revenue growth of 0.4% to RM1.17 billion, while the aeronautical segment increased 11.1% to RM645.3 million over the corresponding quarter last year.

“Malaysia operations recorded passenger growth of 2% to 25.5 million passengers as compared to the corresponding quarter last year of 25 million passengers,” MAHB said.