Financials


Quarterly Report For The Financial Period Ended 31 December 2018

Financials Archive

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Condensed Unaudited Consolidated Statement of Profit or Loss For The Year Ended 31 December 2018

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 31 December 2018

Income Statement

Performance Review

Income Statement

Q4’2018 vs Q4’2017 (Quarter-on-Quarter)

Revenue

The Group’s revenue for the current quarter under review grew 0.4% over the corresponding quarter last year to RM1,251.7 million.

Airport operations recorded a revenue growth of 0.4% to RM1,174.6 million. Aeronautical segment has increased by 11.1% to RM645.3 million over the corresponding quarter last year. Malaysia operations recorded passenger growth of 2.0% (international: +0.8%, domestic: +3.3%) to 25.5 million passengers as compared to the corresponding quarter last year of 25.0 million passengers.

The passenger traffic for the Turkey operations increased by 3.8% (international: +11.5%, domestic +0.0%) to 8.2 million passengers as compared to the corresponding quarter last year of 7.9 million passengers.

Non-aeronautical segment increased slightly by 0.2% to RM531.9 million due to higher nonaeronautical revenue from Turkey operations.

Non-airport operations also increased slightly by 1.1% or RM0.8 million due to higher revenue from Qatar operations.

Overall, Malaysia and Qatar operations recorded increase in revenues by 3.9% to RM936.2 million and 24.1% to RM43.2 million respectively. Turkey operation however recorded a decline in revenue by 12.3% to RM272.3 million due to the absence of construction revenue in the current quarter pursuant to the completion of boarding hall expansion of ISGIA.

Profit before tax and zakat (PBT)

The Group recorded a PBT of RM27.5 million as compared to RM57.4 million in the previous corresponding quarter, an unfavourable variance of 52.1% or RM29.9 million. The unfavourable variance was contributed by higher Group cost.

Cost has increased by 3.4% or RM42.9 million as compared to the previous corresponding quarter mainly due to provision of doubtful debts, higher amortisation and depreciation, utilities as well as repair and maintenance cost.

PBT of the Malaysian operations decreased by 47.5% to RM62.2 million. Turkey operations registered a loss before tax (LBT) of RM36.8 million, lower by 40.5% from loss recorded in the previous corresponding quarter while Qatar operations recorded higher PBT by 134.6% to RM2.1 million.

Share of results of Associates and Joint Ventures (JV)

Share of associate’s profits in the current quarter under review amounted to RM7.3 million as compared to profits of RM1.7 million for the corresponding quarter last year, mainly due to higher contribution from MFMA Development Sdn Bhd (MFMA).

Share of JV‘s profits in the current quarter under review was higher by RM2.3 million mainly due to higher contribution from Segi Astana Sdn Bhd (SASB).

Commentary On Current Year Prospects

MAHB’s network of airports (including ISGIA) recorded 133.1 million passengers in the current year under review from 1 January 2018 to 31 December 2018, representing a growth of 3.9% over last 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 increased by 6.1% and domestic aircraft movements increased by 0.7%.

Malaysia Operations

Passenger traffic at MAHB operated airports registered 2.3% in growth with 99.0 million passengers in the current year under review. International passengers traffic registered a 4.2% increase to 51.6 million passengers and domestic passenger traffic increased by 0.2% to 47.4 million passengers.

International Monetary Fund (IMF) has projected a lower 3.7% global growth in 2019 in its October 2018 forecast as compared to 3.9% in its previous forecast. IMF has also revised Malaysia’s economic growth downward to 4.7% and 4.6% for 2018 and 2019 from an earlier forecast of 5.3% and 5.0% respectively. Malaysian Institute of Economic Research (MIER) had in October last year revised 2018 Gross Domestic Product (GDP) growth to 4.7% from 5.5%. China and several Asian economies are projected to experience somewhat weaker growth in 2019 after the United States of America announcement of more restricted trade measures.

International Air Transport Association (IATA) has predicted a lower passenger demand over the next couple of years. IATA has forecasted global scheduled passenger traffic growth (in terms of Revenue Passenger Kilometres (RPKs)) for 2019 to be in the range of 6.0%. Airport Council International’s (ACI) global forecast which is based on airport passenger traffic is slightly higher at 6.1%. Fuel price (Brent crude) has come down by 30% and is expected to remain relatively low for 2019. It is a positive factor for air travel. However, traffic growth is expected to remain vulnerable with significant changes in the macro-economic environment despite the expected lower fuel price. Based on prevailing economic conditions and the airlines seat capacity offered, Malaysia passenger traffic in 2019 is expected to grow by 4.9% with international and domestic passenger traffics growing at 2.4% and 7.6% respectively.

Overseas Operations

ISGIA recorded 34.1 million passengers in the current year under review, representing an increase of 8.9% over last year. International passenger traffic increased by 13.6% while domestic passenger traffic increased by 6.7%.

Passenger growth prospect for ISGIA in 2019 is expected to be moderate at 4.3%. The international and domestic passenger traffics are expected to grow by 5.2% and 3.8% respectively. The growth focus for ISG will be within the Middle East, Commonwealth of Independent State (CIS) and Central Eastern Europe (CEE) regions which is currently underserved from ISGIA. The moderate growth is also partly due to capacity limitations pending the opening of the second runway.