Financials


Quarterly Report For The Financial Period Ended 31 March 2019

Financials Archive

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Condensed Unaudited Consolidated Statement of Profit or Loss For The Year Ended 31 March 2019

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 31 March 2019

Income Statement

Performance Review

Income Statement

Q1 2019 vs Q1 2018 (Quarter-on-Quarter)

Revenue

The Group’s revenue for the current quarter grew 3.0% over the corresponding quarter last year to RM1,252.3 million on the back of increased overall passenger growth of 3.7%.

Airport operations recorded a revenue growth of 2.5% to RM1,172.1 million. Revenue from the aeronautical segment has increased by 9.9% to RM646.5 million over the corresponding quarter last year. Malaysia operations recorded passenger growth of 3.7% (international: +0.8%, domestic: +7.0%) to 25.3 million passengers as compared to the corresponding quarter last year of 24.4 million passengers.

The passenger traffic for Turkey operations increased by 3.8% (international: +20.0%, domestic: -3.8%) to 8.1 million passengers as compared to 7.8 million passengers recorded in the corresponding quarter last year.

However, non-aeronautical segment decreased slightly by 0.6% to RM525.6 million as compared to the corresponding quarter last year.

Non-airport operations increased by 10.4% or RM7.5 million due to higher revenue from the project segment.

Overall, Malaysia operations recorded revenue of RM931.7 million with growth of 2.6%, whilst Turkey and Qatar operations recorded revenue growth of 2.6% to RM279.7 million and 17.5% to RM40.9 million respectively.

Profit before tax and zakat (PBT)

The Group recorded a PBT of RM164.6 million as compared to RM472.7 million in the corresponding quarter last year, due to the one-off gains recorded in the corresponding quarter last year in relation to the fair valuation of investment in GMR Hyderabad International Airport Limited (GHIAL) amounting to RM258.4 million and gain on disposal of investment in GMR Male Private Limited (GMIAL) amounting to RM28.2 million.

Excluding the one-off gains, the Group PBT decreased by 11.6% or RM21.5 million as compared to the corresponding quarter last year due to higher expenditure, mainly on utilities due to increase in tariff effective July 2018 and maintenance recorded during the period.

PBT of the Malaysian operations decreased by 60.8% to RM212.7 million, however after excluding the one-off gains in the corresponding quarter, the PBT decreased by 17.0% or RM43.5 million. Turkey operations registered a loss before tax (LBT) of RM51.7 million, an improvement by 32.5% from the loss recorded in the corresponding quarter last year of RM76.6 million while the Qatar operations recorded a lower PBT by 44.6% to RM3.6 million.

Share of results of Associates and Joint Ventures (JV)

Share of associate’s profits in the current quarter under review amounted to RM2.4 million as compared to the losses of RM0.4 million for the corresponding quarter last year, due to higher contribution from MFMA Development Sdn. Bhd. (MFMA) and Kuala Lumpur Aviation Fuelling System Sdn. Bhd. (KAF).

Share of JV’s profits in the current quarter under review amounted to RM4.7 million as compared to the profits of RM2.9 million for the corresponding quarter last year, mainly due to higher contribution from Segi Astana Sdn. Bhd. (SASB).

Commentary On Current Year Prospects

MAHB’s network of airports (including ISGIA) recorded 33.4 million passengers in the current quarter under review from 1 January 2019 to 31 March 2019, representing a growth of 3.7% over the corresponding quarter last year. During the same period, the Group’s traffic for international passengers improved by 3.9% while traffic for domestic passengers increased by 3.6%. Correspondingly, the Group’s aircraft movements improved by 1.1% with both international and domestic aircraft movements increasing by 1.4% and 0.9% respectively.

Malaysia Operations

Passenger traffic at MAHB operated airports registered 3.7% in growth with 25.3 million passengers in the current quarter under review. International passengers traffic registered a 0.8% increase to 13.1 million passengers and domestic passenger traffic increased by 7.0% to 12.2 million passengers.

MAHB’s passenger traffic growth was driven by the domestic sector, partly due to higher seat capacity offered by airlines to match air travel demand. International passenger volume remains consistent with slight increase although there are some signs of adjustments partly due to aircraft utilisation, exit and entry in airlines operations on common routes and the temporary suspension of Firefly’s operation to Seletar, Singapore. Three international carriers which operated Boeing 737MAX to KLIA had switched to other aircraft types after the Ethiopian Air incident. The Indonesian carriers were also seen to reduce flight frequencies after the Lion Air crash in October 2018 which was also related to the Boeing 737MAX. The recent grounding of the Boeing 737MAX may have further negative impact on Indonesian carriers’ capacity to Malaysia. However, the impact from this may not be significant as most of the Indonesia sectors have competing airlines.

Moving forward, the future seat capacity filings by airlines remain above expectations and MAHB remains optimistic that the projected 4.9% growth for 2019 will be achieved. The domestic traffic correction and consolidation is expected to continue while the international sector may also see improvement.

Overseas Operations

ISGIA recorded 8.1 million passengers in the current quarter under review, representing an increase of 3.8% over the corresponding quarter last year. International passenger traffic increased by 20.0% while domestic passenger traffic decreased by 3.8%.

ISGIA traffic was essentially driven by the international sector as some of the major airlines shifted certain operations from domestic to international sector. ISGIA performance will likely maintain its growth momentum in 2019 especially for international passenger traffic.