Section Heading

Kuala Lumpur, Kuala Lumpur, Malaysia

Temperature 24 °C Cloudy

Section Heading

Section Heading

Quarterly Report For The Financial Period Ended 31 March 2022

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 31 March 2022

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 31 March 2022

Income Statement

Performance Review

Income Statement

1Q 2022 vs 1Q 2021 (Q-on-Q)

Revenue

The Group’s revenue for the current quarter increased significantly by 69.4% over the corresponding quarter in the prior year to RM570.8 million in tandem with the significant increase in passenger volumes for the Group, driven by the further easing of travel restrictions and quarantines, reopening of borders through Vaccinated Travel Lanes (VTL) arrangements by several countries and the gradual transition to an endemic phase.

Revenue from airport operations increased significantly by 74.8% to RM510.2 million. Aeronautical segment revenue increased from RM142.6 million to RM294.8 million as compared to the corresponding quarter in the prior year on the back of traffic recovery with total passenger traffic of 14.7 million for the Group as compared to 5.9 million passengers in the corresponding quarter in the prior year. Malaysia operations passenger traffic improved significantly to 8.3 million as compared to 1.7 million passengers in the corresponding quarter in the prior year. Whilst, Turkey operations continued to show passenger traffic recovery from 4.2 million to 6.4 million passengers during the same period. The non-aeronautical segment revenue increased from RM149.3 million to RM215.4 million, largely due to better contribution of commercial revenue from Malaysia and Turkey operations.

Revenue from the non-airport operations increased by 34.7% or RM15.6 million due to higher revenue from the project and repair maintenance, agriculture and hotel businesses.

Overall, Malaysia and Turkey operations had recorded a significant increase in revenue by 67.1% to RM273.1 million and 80.7% to RM275.1 million respectively. Whereas, Qatar operations recorded marginal increase in revenue by 6.1% to RM22.6 million.

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

The Group LBT narrowed to RM150.4 million as compared to LBT of RM280.5 million in the corresponding quarter in the prior year driven by the increase in revenue of RM233.9 million, albeit increase in depreciation in line with traffic and higher finance cost. Other cost increase primarily due to increase in user fees payable under the Operating Agreement and other revenue share payables to the Concessionaire. Nonetheless, core operational expenses1 marginally increase by RM1.3 million.

Malaysia operations recorded a LBT of RM116.8 million, whilst Turkey operations recorded a LBT of RM36.6 million, both lower than the LBT in the corresponding quarter in the prior year of RM180.5 million and RM100.8 million respectively. Qatar operations recorded a PBT of RM3.0 million as compared to RM0.6 million recorded in the corresponding quarter in the prior year.

The Group's LBT was however mitigated by the recognition of deferred tax asset arising from the current period business losses. Accordingly, the Group recorded loss after taxation (LAT) of RM104.8 million.

Share of results of Associates and Joint Ventures (JV)

In the current quarter under review, the share of results from associates recorded a profit of RM1.9 million, higher by RM2.7 million as compared to a loss of RM0.8 million for the corresponding quarter in the prior year. Improved in share of profit was due to share of profits contributed from KAF, MFMA Development Sdn. Bhd. (MFMA) and Alibaba KLIA Aeropolis Sdn. Bhd. (Alibaba KLIA Aeropolis) of RM1.1 million, RM0.6 million and RM0.5 million respectively. However, offset by share of losses from Cooling Energy Supply Sdn. Bhd. (CES) of RM0.6 million.

Share of results of joint ventures in the current quarter under review recorded losses amounting to RM0.2 million, lower by RM1.2 million as compared to the losses of RM1.4 million for the corresponding quarter in the prior year. Lower losses was contributed by the narrowing of share of losses from Segi Astana Sdn. Bhd. (SASB) from RM3.3 million registered in the corresponding quarter in the prior year to RM1.4 million, negated by lower share of profit from Airport Cooling Energy Supply Sdn. Bhd. (ACES) of RM1.2 million as compared to RM1.9 million profit recorded in the corresponding quarter in the prior year.


Commentary On Prospects

MAHB’s network of airports recorded 14.7 million passengers in the current quarter under review from 1 January 2022 to 31 March 2022, a substantial improvement of 149.2% over the corresponding quarter in the prior year. During the same period, the Group’s traffic for international and domestic passengers improved by 173.3% and 140.9% respectively. Correspondingly, the Group’s aircraft movements improved substantially by 106.1% with both international and domestic aircraft movements increasing by 81.4% and 116.4% respectively.

2022 first quarter passenger movements of 14.7 million passengers, is the highest passenger movements for a quarter recorded to-date since the COVID-19 outbreak was declared as a global pandemic on 11th March 2020. The positive development is a significant milestone for the network of airports as it signals a turning point for a realistic and optimistic traffic recovery, albeit at a different pace of recovery between Malaysia and Turkey operations.

  1. Malaysia Operations

    Passenger traffic at MAHB operated airports improved substantially by 388.2% to 8.3 million passengers in the current quarter under review. Traffic for international and domestic passengers improved by 233.3% to 1.0 million passengers and 421.2% to 7.3 million passengers respectively. Malaysia’s international sector is just beginning to pick up as countries in the Asia Pacific region are taking cautious measures to reopen borders. Malaysia’s VTL with Singapore and Thailand, Langkawi travel bubble and the resumption of Umrah services were some of the earlier initiatives to ease international travel restrictions.

  2. Overseas Operations

    ISGIA passenger traffic improved by 52.4% to 6.4 million passengers in the current quarter under review. International passenger and domestic passenger was higher by 158.3% and 10.0% respectively. ISGIA passengers for the current quarter under review reaching 79% of 1Q2019 level, and is the highest quarterly volume registered since April 2020. Traffic in ISGIA continued to show similar seasonality trends over the pre-COVID period since travel procedures was relaxed for both domestic and international sector on 11 June 2021. ISGIA’s head start in traffic recovery was supported by less stringent travel procedures, a reciprocal health certificate acceptance with the European Union and the much earlier reopening of borders among countries in the region.

  3. Outlook

    In April, the passenger movements for the MAHB's network of airports continued to show resilience, recording 4.9 million passengers, which is the second highest traffic registered for 2022. Malaysia traffic resurgence was facilitated by the reopening of borders from 1 April 2022, the Aidilfitri week-long holidays, and the country’s transition towards an endemic phase. International passenger movements grew by 53% in April compared to March 2022 reaching more than 600,000 passengers for the first time. The further relaxing of COVID-19 SOP from 1 May 2022, is expected to ease international travellers’ journey and would further facilitate the resumption of international traffic in the months to come.

    KL International Airport (KUL) also welcomed a new international airline, Air India Express’ (IX) on 28 March that serves a three-time weekly flight from Tiruchirappalli International Airport (TRZ) in Tamil Nadu, India. It is the only foreign aircraft with a scheduled service between Tiruchirappalli and Kuala Lumpur. Meanwhile, partner airlines also continued to resume more international routes such as Malaysia Airlines (MH) and Batik Air (formerly Malindo Air)(OD) flying to Perth (PER) upon reopening of the Australian borders on 3 March. MH resumed flights to five cities in India in March as well, operating to New Delhi (DEL), Bangalore (BLR), Mumbai (BOM), Chennai (MAA) and Hyderabad (HYD).

  4. Group Initiatives

    MAHB is pivoting towards a propensity for growth, aggressively seeking out revenue generation and actively unlocking untapped opportunities to strengthen it’s financial position. In addition, MAHB continues to take pre-emptive measures to mitigate its impact by implementing an aggressive cost optimisation plan. These measures include recalibrating operational efficiencies i.e. rebasing cost and prioritizing capital expenditure to conserve cash reserves and ensure that the Group is able to meet its financial and operational obligations.