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Kuala Lumpur, Kuala Lumpur, Malaysia

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Quarterly Report For The Financial Period Ended 31 March 2020

Financials Archive

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Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 31 March 2020

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 31 March 2020

Income Statement

Performance Review

Income Statement

1Q 2020 vs 1Q 2019 (Q-on-Q)

Revenue

The Group's revenue for the current quarter declined by 25.4% over the corresponding quarter in the prior year to RM933.8 million in tandem with the contraction in passenger movements of 23.9% due to the impact of COVID-19 pandemic and travel restriction imposed by the Government of Malaysia and other countries as a containment measure for the outbreak.

Airport operations' revenue declined by 25.1% to RM877.7 million. Revenue from the aeronautical segment decreased by 22.3% to RM502.3 million over the corresponding quarter in the prior year. Passenger traffic for the Malaysia operations contracted by 27.6% (international: -32.8%, domestic: -22.0%) to 18.4 million passengers as compared to 25.4 million passengers recorded in the corresponding quarter in the prior year. The passenger traffic for Turkey operations contracted by 12.3% (international: -6.7%, domestic: -15.7%) to 7.1 million passengers as compared to 8.1 million passengers recorded in the corresponding quarter in the prior year. Non-aeronautical segment decreased by 28.6% to RM375.4 million as compared to the corresponding quarter in the prior year.

Revenue from the non-airport operations decreased by 30.0% or RM24.1 million due to lower revenue from the project and repair maintenance and hotel businesses.

Overall, Malaysia and Turkey operations had recorded a decrease in revenue by 29.1% to RM660.2 million and 10.0% to RM251.6 million respectively. Qatar operations recorded a decrease in revenue from RM40.9 million to RM22.0 million.

(Loss)/profit before tax and zakat (LBT/PBT)

The Group recorded a LBT of RM35.5 million as compared to PBT of RM164.6 million in the corresponding quarter in the prior year mainly due to the decrease in revenue by 25.4%. Group cost decreased by 9.1% as compared to the corresponding quarter in the prior year. Lower cost was due to lower operating cost, user fee, depreciation and amortisation recorded during the period.

Overall, Malaysia and Qatar operations recorded lower PBT of RM0.8 million and RM3.0 million respectively. Turkey operations had recorded a LBT of RM39.3 million, an improvement of RM12.4 million from the loss recorded in the corresponding quarter in the prior year of RM51.7 million.

Share of results of Associates and Joint Ventures (JV)

Share of results of associates in the current quarter under review amounted to RM0.5 million, lower by RM1.9 million as compared to the profits of RM2.4 million for the corresponding quarter in the prior year, due to lower contribution from Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (KAF), MFMA Development Sdn. Bhd. (MFMA) and higher losses from Cainiao KLIA Aeropolis Sdn. Bhd. (Cainiao KASB) and BP Malaysia Airports Subang Aerotech Sdn. Bhd. (BPMA Subang).

Share of results of joint ventures in the current quarter under review amounted to RM3.2 million, lower by RM1.5 million as compared to the profits of RM4.7 million for the corresponding quarter in the prior year due to lower contribution from Segi Astana Sdn. Bhd. (SASB).


Commentary On Prospects

MAHB's network of airports recorded 25.5 million passengers in the current quarter under review from 1 January 2020 to 31 March 2020, a decline of 23.9% over the corresponding quarter in the prior year. During the same period, the Group's traffic for international and domestic passengers contracted by 28.0% and 20.1% respectively. Correspondingly, the Group's aircraft movements decreased by 11.8% with both international and domestic aircraft movements decreasing by 16.1% and 8.9% respectively.

  1. Malaysia Operations

    Passenger traffic at MAHB operated airports contracted by 27.6% with 18.4 million passengers in the current quarter under review. Traffic for international and domestic passengers contracted by 32.8% to 8.8 million passengers and 22.0% to 9.6 million passengers respectively.

    The overall passenger movements for the network of airports have been affected by the travel restrictions imposed since March 2020 due to COVID-19. Airports in Malaysia registered decreasing passenger movements from the end of January 2020 and the rate of decline significantly increased from 18 March 2020 corresponding to the Movement Control Order (MCO) announced by the Government that restricted both Malaysians and foreigners from travelling to and from Malaysia. However, there were small number of arrival Malaysian passengers from repatriation flights at KLIA and who further continued to travel domestically via KLIA. Moving forward, air travel demand may resume if the risks associated with COVID-19 have been mitigated both in Malaysia as well as countries which our airports have flight connections to.

  2. Overseas Operations

    ISGIA passenger traffic contracted by 12.3% to 7.1 million passengers in current quarter under review. International and domestic passenger contracted by 6.7% and 15.7%, respectively. ISGIA passenger movements experienced a decline in passengers following the suspension of flights imposed to certain countries in stages and later to all international destinations announced by the Government of Turkey from 28 March 2020 onwards. However, few cargo and charter flights are expected to take place in May with Pegasus and Turkish Airlines, planning to resume operations from 28 May 2020.

Group Cost Optimisation Initiatives

With the aviation industry affected by the unprecedented travel restrictions and bans, MAHB has begun proactively executing Group-wide optimisation plan to ensure that the Group is able to meet its financial and operational obligations. This includes reviewing operational efficiencies, rebasing cost, prioritising capital expenditure and conserving cash to safeguard its financial resilience while ensuring business continuity under difficult conditions.