by MARK RAO/ BERNAMA PIC
Malaysia Airports Holdings Bhd (MAHB) posted higher revenue but net profit drop 66.4% year-on-year (YoY) largely due to the absence of one-off gains for the first three months of 2019.
For the quarter under review, the group recorded a net profit of RM149.58 million against the RM444.6 million managed in the corresponding quarter last year.
The higher profit a year ago was due to the gains of RM258.4 million from the fair valuation of an investment in GMR Hyderabad International Airport Ltd and RM28.2 million from the disposal of its investment in GMR Male Private Ltd recognised in 1Q18.
The airline operator incurred higher higher expenditure from utilities and maintenance charges.
Revenue for the quarter, however, grew 2.5% YoY to RM1.25 billion on the 3.7% passenger growth achieved across its 39 Malaysian airports.
Malaysian operations recorded 25.3 million passengers in 1Q19 against the 24.4 million in 1Q18, with domestic and international traffic up 7% and 0.8% respectively.
Passenger traffic for MAHB’s international airport in Turkey also rose 3.8% over the same period, supported by international passengers (up 20% YoY) as domestic traffic declined 3.8%.
MAHB said future seat capacity by airlines remain above expectations, positioning the airport operator to achieve its targeted 4.9% passenger growth for 2019.
“The domestic traffic correction and consolidation is expected to continue while the international sector may also see improvement,” it said in a filing today.
For its airport in Turkey, namely Istanbul Sabiha Gokcen International Airport, MAHB said growth momentum is expected to be sustained on international passenger traffic as several major airlines shifted operations to cater to this segment.