Quarterly Report For The Financial Period Ended 31 March 2024

Financials Archive

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Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 31 March 2024

Condensed Unaudited Consolidated Statement of Financial Position As At 31 March 2024

Performance Review

1Q 2024 vs 1Q 2023 (Q-on-Q)

Revenue

The Group’s revenue for the current quarter increased by 30.6% over the corresponding quarter in the prior year to RM1,351.3 million. This growth was driven by higher passenger volumes resulting from the new airlines operations, school holiday break, Chinese New Year festive season and the implementation of 30-day visa-free waiver for China and India travellers to Malaysia.

Revenue from airport operations increased by 31.7% from RM960.7 million to RM1,265.7 million. Aeronautical segment revenue increased from RM553.8 million to RM733.9 million as compared to the corresponding quarter in the prior year. This surge was driven by the growth in traffic, with total passenger numbers for the Group reaching 31.3 million from 26.8 million passengers in the corresponding quarter last year. Malaysia operations saw a surge in passenger traffic, reaching 21.8 million passengers compared to 18.7 million passengers in the corresponding quarter in the prior year. Similarly, Türkiye operations continued to show passenger traffic growth, increasing from 8.1 million to 9.5 million passengers during the same period. Non-aeronautical segment revenue increased from RM406.9 million to RM531.8 million, largely due to better contribution of commercial revenue from Malaysia and Türkiye operations.

Revenue from the non-airport operations increased by 16.1% or RM11.9 million from RM73.7 million to RM85.6 million due to higher revenue from hotel, agriculture, project and repair maintenance businesses.

Overall, Malaysia and Türkiye operations had recorded an increase in revenue by 35.0% from RM632.2 million to RM853.2 million and 25.0% from RM377.4 million to RM471.8 million, respectively. Whilst, Qatar operations recorded a marginal increase in revenue from RM24.8 million to RM26.3 million.

Profit/(loss) before tax and zakat (PBT/LBT)

The Group registered a PBT of RM214.6 million in the current quarter under review, which was slightly lower than the RM221.8 million recorded in the immediate preceding quarter. This reduction was primarily attributed to the gain on fair value of investment in GHIAL of RM102.4 million recorded in the immediate preceding quarter and lower operational cost and depreciation recorded in the current quarter under review.

Excluding the one-off gain on fair value of investment in GHIAL, PBT increased by 79.7% or RM95.2 million compared to the preceding quarter.

In the current quarter under review, Malaysia operations recorded PBT of RM160.8 million, higher than RM157.1 million recorded in the immediate preceding quarter. Whereas, Türkiye operations recorded lower PBT of RM51.3 million as compared to RM65.8 million in the immediate preceding quarter. Qatar operations recorded PBT of RM2.5 million, improved as compared to LBT of RM1.1 million recorded in the immediate preceding quarter.

Share of results of Associates and Joint Ventures (JV)

In the current quarter under review, the share of results from associates recorded profits of RM9.5 million, lower as compared to RM15.4 million profit for the immediate preceding quarter. This reduction was primarily driven by a lower contribution from MFMA from RM12.3 million to RM1.7 million due to higher gain on fair value on investment properties, resulting from revaluation exercise undertaken at the financial year end in the immediate preceding quarter. However, offset by higher contributions from KAF, Alibaba KLIA Aeropolis and CES of RM3.8 million, RM1.5 million, RM2.5 million respectively.

Share of results of joint ventures in the current quarter under review recorded profits of RM4.9 million, slightly lower as compared to RM5.4 million profits for the immediate preceding quarter. Lower share of profits were mainly due to lower contributions from SASB and ACES of RM2.2 million and RM2.7 million, respectively.

Commentary On Prospects

MAHB has returned to and sustained its profitability and positive cashflows for the past 5 quarters, in line with traffic recovery. For FY2024, passenger traffic is expected to further recover closer to prepandemic levels, with International Air Transport Association ("IATA") and Airports Council International ("ACI") predicting global passengers to grow above 2019 levels by 9% and 6% respectively. Both bodies also predict Asia Pacific passenger numbers to recover beyond pre-pandemic levels by 2024, where IATA forecasts a 10% growth over 2019 while ACI expects a 3% growth. On the local front, the relaxation of visa requirements has helped to stimulate passenger arrivals and MAHB continue to work closely with the Malaysian Government to further facilitate passenger arrivals, including expanding the use of e-Gate to China and India passengers.

In line with the positive traffic outlook and growing demand for air travel, MAHB has put in important and significant investments to replace ageing assets and modernise the airports it operates. The recently signed Operating Agreements (new OAs) with the Government, which extend MAHB’s operating tenure to 2069, also provide a clear investment recovery framework for MAHB to pursue viable airport developments that will be both beneficial to the passengers and the country, as well as provide valuable earning accretion opportunities to the Group. The expansion of Penang International Airport shall be the first deliverables under the new OAs for which the Group has agreed with the Government on the recovery mechanism, based upon a pre-agreed rate of return. Malaysian Aviation Commission ("MAVCOM") also recently gazetted new Aviation Service Charges for June 2024 to December 2026, with a supplemental Loss Capitalisation Mechanism embedded, before moving to cost-based regulations from 2027 onwards, ensuring improved cost recovery in running the network of airports.

The Group’s performance may nevertheless be affected by the availability of aircraft and macroeconomic factors such as global inflation and potential increase in fuel prices as well as geopolitical risks. The Group remains steadfast in optimising its costs, with its core cost per passenger expected to further improve in tandem with passenger growth. The Group also closely monitors the prevailing conflict in West Asia and the possible impact on its operations and costs as airlines reroute flights to avoid specific airspace.