MAHB profit surges to RM727.30 mil

KUALA LUMPUR: Malaysia Airports Holdings Berhad’s (MAHB) net profit surged 203.35% to RM727.30 million in the financial year ended Dec 31, 2018 versus RM239.75 million in 2017.

This was attributed to, among others, unrealised gain on the fair value of investment in GMR Hyderabad International Airport Ltd (GHIAL) amounting to RM258.4 million.

MAHB has an 11% stake in GHIAL.

The group’s revenue rose 4.3% to RM4.85 billion from RM4.65 billion last year, underpinned by growth in airport operations, it said.

Total revenue growth by both aeronautical and non-aeronautical segments increased 4.7% from RM4.35 billion to RM4.56 billion, it said in a filing to Bursa Malaysia here today.

However, non-airport operations’ revenue declined slightly by 1.8% over the last year to RM291.4 million, mainly due to lower contributions from the agriculture business.

“Overall, Malaysian operations recorded a revenue of RM3.54 billion with growth of 3.5%.

“The Turkey and Qatar operations recorded a revenue growth of 6.3% to RM1.15 billion and 8.4% to RM149.1 million respectively,” it added.

On net profit, MAHB said there was an unrealised gain on the fair value of investment in GHIAL amounting to RM258.4 million and higher revenue of RM200.4 million.

“Cost has increased by 1.8% to RM4.64 billion as compared with last year, mainly due to higher utilities and administrative cost recorded during the year.”

The net profit for Malaysia and Qatar was higher compared with 2017, while Turkey operations recorded an improvement in pre-tax loss to RM209.0 million, decreasing by RM78.5 million compared with last year, it said.

The fourth quarter net profit, however, was lower at RM28 million compared with RM32.28 million, while revenue stood at RM1.25 billion versus RM1.24 billion previously.

On the outlook, MAHB said based on prevailing economic conditions and the airlines’ seat capacity offered, Malaysian passenger traffic in 2019 is expected to grow by 4.9%. International and domestic passenger traffic is expected to grow at 2.4% and 7.6% respectively.

MAHB’s network of airports, including, Istanbul Sabiha Gokcen International Airport (ISGIA), recorded 133.1 million passengers in the current year under review from Jan 1, 2018 to Dec 31, 2018, representing a growth of 3.9% over the previous year.

During the year, traffic for international passengers improved by 5.9%, while traffic for domestic passengers increased by 2.2%.

Correspondingly, aircraft movements improved by 2.8%, with international aircraft movements increasing by 6.1% and domestic aircraft movements increasing by 0.7%, it said.