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Kuala Lumpur, Kuala Lumpur, Malaysia

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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 30 September 2018

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 30 September 2018

Income Statement

Performance Review

Income Statement

Quarter-on-Quarter

Revenue

The Group’s revenue for the current quarter under review grew 1.5% over the corresponding quarter last year to RM1,229.5 million.

Airport operations recorded revenue growth of 1.7% to RM1,155.4 million. Aeronautical segment has increased by 4.5% to RM632.4 million over the corresponding quarter last year. Malaysia operations recorded passenger growth of 2.0% (international: +3.1%, domestic: +0.8%) to 25.0 million passengers as compared to the corresponding quarter last year of 24.5 million passengers.

The passenger traffic for the Turkey operations increased by 7.8% (international: +6.3%, domestic +8.6%) to 9.7 million passengers as compared to the corresponding quarter last year of 9.0 million passengers.

However, non-aeronautical segment has declined slightly by 1.6% to RM523.0 million due to lower non-aeronautical revenue from Turkey operations.

Non-airport operations has declined by 2.1% or RM1.6 million due to lower revenue from hotel and agriculture business.

Overall, Malaysia and Qatar operations has recorded an increase in revenue by 2.6% to RM883.5 million and 3.4% to RM36.8 million respectively. However, Turkey operations recorded a slight decline in revenue by 2.0% to RM309.2 million.

Profit before tax and zakat (PBT)

The Group recorded a PBT of RM154.8 million as compared to RM92.4 million in the previous corresponding quarter, a favourable variance of 67.6% or RM62.4 million. The favourable variance was contributed by higher Group revenue and other income, and lower overall cost recorded in the current quarter.

Cost has reduced by 1.6% or RM19.0 million as compared to the previous corresponding quarter. Reduction in cost was mainly due to net writeback of provision of doubtful debts and lower amortisation and depreciation cost.

PBT of the Malaysian operations increased by 41.6% to RM189.7 million. Turkey registered a loss before tax (LBT) of RM38.2 million, lower by 19.1% from loss recorded in the previous corresponding quarter while Qatar operations recorded lower PBT by 41.2% to RM3.3 million.

Share of results of Associates and Joint Ventures (JV)

Share of associate’s losses in the current quarter under review amounted to RM0.1 million as compared to profits of RM0.9 million for the corresponding quarter last year, mainly due to lower contribution from Kuala Lumpur Aviation Fuelling System Sdn Bhd (KAF).

Share of JV‘s profits in the current quarter under review was higher by RM0.3 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 99.6 million passengers in the current period under review of 1 January 2018 to 30 September 2018, representing a growth of 4.5% over the corresponding period last year. During the same period, international passengers traffic improved by 6.8% while domestic passengers traffic increased by 2.5%. Correspondingly, aircraft movements improved by 2.3% with international aircraft movements increased by 6.8% while the domestic aircraft movements declining by 0.5%.

Malaysia Operations

Passenger traffic at MAHB operated airports registered 2.5% in growth with 73.7 million passengers in the current period under review. International passengers traffic registered a 5.8% increase to 38.6 million passengers while domestic passenger traffic declined by 0.8% to 35.1 million passengers.

The higher oil price fluctuation environment may have some impact in the short term but is unlikely to hamper traffic growth in the long run based on past trends. Nevertheless, passenger growth remains vulnerable to macroeconomic pressures due to trade restrictions between China and the United States along with lower economic growth for Malaysia.

Overseas Operations

ISGIA recorded 25.9 million passengers in the current period under review, representing an increase of 10.7% over the corresponding period last year. International passenger traffic increased by 11.5% while domestic passenger traffic increased by 10.3%.

The Management expects the financial performance for the Group for the financial year ending 31 December 2018 to be better than the previous year due to the following:

  1. Passenger traffic for Malaysia in 2018 is expected to achieve a relatively moderate growth compared to the previous year, with international passenger traffic growth outpacing domestic passenger traffic; and
  2. The growth momentum in Turkey is expected to hold based on current market conditions.