Malaysia Airports registers record RM5.2 billion revenue for 2019

MAHB group CEO Mohd Shukrie Mohd Salleh.

SEPANG: Malaysia Airports Holdings Bhd (MAHB) today announced a record revenue of RM5.2 billion for the financial year ending 2019.

At a press conference after its first ever virtual annual general meeting here today, MAHB group CEO Mohd Shukrie Mohd Salleh said the group had registered record earnings before interest, tax, depreciation and amortisation (Ebitda) of RM2.2 billion.

This marked a 7.4% increase in revenue and 9.3% increase in Ebitda from previous years.

The total dividend payout for the financial year 2019 was RM248.8 million, representing 52% of total adjusted profit after tax.

This surpassed the group’s dividend policy for payouts of at least 50%.

Mohd Shukrie said MAHB’s strong financial performance and prudent cashflow management would put the group in a better position to weather the impact of Covid-19.

He added that MAHB had put in place an aggressive 18-month cost optimisation plan to ensure it could meet its financial and operational obligations.

“The group has also started to pare down non-essential operating costs with the aim of lowering these by at least 20%,” he said, adding that this includes the reduction of capital expenditure from RM1.8 billion to RM320 million.

He also spoke of critical investments for the replacement of MAHB’s ageing aerotrains and baggage handling system.

“These need to change regardless of Covid-19 or not,” he said, adding that enhancements include the upgrade of runways and toilets and the commercial reset initiative.

Mohd Shukrie said MAHB was working with its partners to revive the industry and restore the public’s confidence to travel.

“Many safety measures have been put in place at the airports with technology as the driving force in contributing towards a safe and contactless airport experience,” he said.

“This includes facial recognition technology, self check-ins, self baggage drops and contactless security screening, automated UV disinfection and e-wallets or mobile payment services.”

Given the easing of travel restrictions, he said, he was optimistic that revenue would recover later in the year.

There has been a 25% increase in average daily flights at KLIA since June 10.

Mohd Shukrie said the situation at the Istanbul Sabiha Gokcen International Airport in Turkey was also on the mend as restrictions there were easing as well.

He said MAHB was providing incentives including fee waivers, marketing support and funding for promotional tourism programmes to help airlines and tour operators survive the current economic difficulties.

He said it was also intensifying efforts to drive and support revenue from non-aeronautical sectors such as commercial sales through mega sales at airports, rental moratoriums of three to six months for businesses at airports, and extensions of tenure for newly signed contracts.

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