Quarterly Report For The Financial Period Ended 30 June 2024

Financials Archive

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Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 30 June 2024

Condensed Unaudited Consolidated Statement of Financial Position As At 30 June 2024

Performance Review

2Q 2024 vs 2Q 2023 (Q-on-Q)

Revenue

The Group’s revenue for the current quarter increased by 11.9% over the corresponding quarter in the prior year to RM1,378.9 million. This growth was driven by higher passenger volumes resulting from the new airline operations, airlines resuming routes and introducing new services, the implementation of 30-day visa-free policy for China and India travellers to Malaysia, the delivery of new aircraft and the Hajj season.

Revenue from airport operations increased by 12.4% from RM1,155.4 million to RM1,298.5 million. Aeronautical segment revenue increased from RM696.7 million to RM758.8 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 33.7 million from 29.3 million passengers in the corresponding quarter last year. Passenger traffic for Malaysia operations increased to 23.2 million from 20.2 million in the corresponding quarter. Meanwhile, Türkiye operations saw a slight increase in passenger traffic, rising from 9.1 million to 10.5 million passengers during the same period. Nonaeronautical segment revenue increased from RM458.7 million to RM539.7 million, largely due to improved contribution of commercial revenue from Malaysia and Türkiye operations.

Revenue from non-airport operations increased by 5.0% or RM3.8 million from RM76.6 million to RM80.4 million due to higher revenue from the hotel and agriculture businesses.

Overall, Malaysia and Türkiye operations had recorded an increase in revenue by 9.5% from RM780.6 million to RM855.1 million and 16.7% from RM426.4 million to RM497.7 million, respectively. Qatar operations recorded a marginal increase in revenue from RM25.0 million to RM26.1 million.

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

In the current quarter under review, the Group recorded a PBT of RM159.5 million, an increase of 19.1% from RM133.9 million in the prior year's corresponding quarter. This increase is attributed to higher revenue and improved profit contributions from associate and joint venture companies. In line with the higher revenue, the Group's registered an increase in cost due to higher user fees payable under the Operating Agreement and higher revenue share payable under ISG's concession, whilst other operational cost and depreciation increased in line with the growth in passenger traffic to fulfil operational necessities.

Overall, Malaysia and Qatar operations registered a PBT of RM106.1 million and RM1.9 million, respectively, slightly lower compared to RM117.6 million and RM2.2 million recorded in the corresponding quarter in the prior year. Türkiye operations recorded a PBT of RM51.5 million, an increase of RM37.4 million compared to RM14.1 million recorded in the corresponding quarter in the prior year.

Share of results of Associates and Joint Ventures (JV)

In the current quarter under review, the share of results from associates recorded profits of RM6.3 million, higher by RM3.6 million as compared to RM2.7 million for the corresponding quarter in the prior year. Higher share of profits were primarily driven by higher profits from KAF, MFMA Development Sdn. Bhd. ("MFMA") and Alibaba KLIA Aeropolis Sdn. Bhd. ("Alibaba KLIA Aeropolis"), contributing RM4.1 million, RM1.8 million and RM1.4 million, respectively. However, this was offset by the share of losses from Cooling Energy Supply Sdn. Bhd. ("CES") of RM1.0 million.

Share of results of joint ventures in the current quarter under review recorded profits of RM2.1 million, higher by RM6.2 million as compared to losses of RM4.1 million recorded in the corresponding quarter in the prior year. This is contributed by higher share of profit from Segi Astana Sdn. Bhd. ("SASB"), contributing RM2.7 million as compared to a loss of RM5.6 million recorded in the corresponding quarter in the prior year. However, this was offset by the share of losses from Airport Cooling Energy Supply Sdn. Bhd. ("ACES") of RM0.6 million.

Commentary On Prospects

MAHB has demonstrated a strong commitment to profitability and sustained growth in cash flows since FY2022, bolstered by the steady recovery in passenger traffic. Looking ahead to FY2024, MAHB anticipates further growth, with passenger traffic expected to approach pre-pandemic levels. On the local front, the relaxation of visa requirements has significantly boosted passenger arrivals, particularly from key markets such as China and India. MAHB continues to collaborate closely with the Malaysian government to enhance the passenger experience and streamline arrivals such as the expansion of e- Gate facilities for travellers from 63 countries, including China and India.

Additionally, ongoing efforts to attract new airlines and routes, coupled with the resumption of services by existing carriers, are set to contribute positively to passenger growth. The strategic focus on improving infrastructure, enhancing operational efficiencies, and offering elevated passenger services positions Malaysia Airports well to capitalize on the anticipated increase in air travel demand. Malaysian Aviation Commission ("MAVCOM") also recently gazetted the new Aviation Service Charges for June 2024 to December 2026, with a supplemental Loss Capitalisation Mechanism embedded, ensuring improved cost recovery in running the network of airports.

Overall, with a robust recovery trajectory, strategic initiatives to boost passenger numbers, and positive industry forecasts, the prospects for MAHB in the coming year appear promising. We remain optimistic about the continued growth and success of MAHB, driven by the collective efforts to ensure a seamless and enjoyable travel experience for all passengers.