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Kuala Lumpur, Kuala Lumpur, Malaysia

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Quarterly Report For The Financial Period Ended 30 September 2022

Financials Archive

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Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 30 September 2022

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 30 September 2022

Income Statement

Performance Review

Income Statement

3Q 2022 vs 3Q 2021 (Q-on-Q)

Revenue

The Group’s revenue for the current quarter increased significantly by 87.2% over the corresponding quarter in the prior year to RM863.6 million in tandem with the significant increase in passenger volumes for the Group, driven by further easing of travel protocols, summer and school holiday period, hajj season and further resumption of airline services and connectivity.

Revenue from airport operations increased significantly by 96.5% to RM799.3 million. Aeronautical segment revenue increased from RM233.4 million to RM449.8 million as compared to the corresponding quarter in the prior year on the back of traffic recovery with total passenger traffic of 24.0 million passengers for the Group as compared to 9.9 million passengers in the corresponding quarter in the prior year. Malaysia operations passenger traffic improved significantly to 14.9 million as compared to 1.0 million passengers in the corresponding quarter in the prior year. Whilst, Türkiye operations continued to show passenger traffic recovery from 8.9 million to 9.1 million passengers during the same period. The non-aeronautical segment revenue increased from RM173.3 million to RM349.5 million, largely due to better contribution of commercial revenue from Malaysia and Türkiye operations.

Revenue from the non-airport operations increased by 17.8% or RM9.7 million from RM54.6 million to RM64.3 million due to higher revenue from the project and repair maintenance and hotel businesses.

Overall, Malaysia operations had recorded a significant increase in revenue by 212.2% from RM151.3 million to RM472.4 million. Whereas, Türkiye and Qatar operations recorded increase in revenue by 27.1% from RM287.9 million to RM365.8 million and 14.9% from RM22.1 million to RM25.4 million respectively.

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

The Group LBT narrowed to RM19.1 million as compared to LBT of RM254.9 million in the corresponding quarter in the prior year driven by the increase in revenue of RM402.3 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 revenue share payable to the concessionaire in tandem with increase in revenue.

Malaysia operations recorded a LBT of RM20.5 million, whilst Türkiye operations recorded a LBT of RM2.4 million, both lower than the LBT in the corresponding quarter in the prior year of RM193.1 million and RM64.1 million respectively. Qatar operations recorded a PBT of RM3.8 million, slightly higher than PBT of RM2.3 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 RM9.0 million.

Share of results of Associates and Joint Ventures (JV)

In the current quarter under review, the share of results from associates recorded lower losses of RM1.2 million as compared to a loss of RM2.0 million for the corresponding quarter in the prior year. Share of losses mainly contributed by Cooling Energy Supply Sdn. Bhd. (CES) of RM4.8 million and offset by share of profits from KAF, MFMA Development Sdn.Bhd. (MFMA) and Alibaba KLIA Aeropolis Sdn. Bhd. (Alibaba KLIA Aeropolis) of RM1.8 million, RM1.0 million and RM0.8 million respectively.

Share of results of joint ventures in the current quarter under review recorded a profit amounting to RM4.2 million, higher by RM4.0 million as compared to RM0.2 million for the corresponding quarter in the prior year. Higher share of profit was contributed by Segi Astana Sdn. Bhd. (SASB) from a losses of RM1.6 million registered in the corresponding quarter in the prior year to RM2.2 million profit, and share of profit from Airport Cooling Energy Supply Sdn. Bhd. (ACES) of RM2.0 million as compared to RM1.8 million profit recorded in the corresponding quarter in the prior year.


Commentary On Prospects

Passenger movements for MAHB network of airports continued to show signs of recovery and expected to improve as the airlines continue to reactivate more aircraft and overcome labour shortages to match increasing demand. Aircraft movements showed increased movements to medium and longhaul flights to Perth, Sydney and Auckland, Southeast Asia and South Asia destinations, as travel restrictions eased, and additional flight frequencies were granted. Recently, KL International Airport (KUL) saw the return of Kuwait Airways after a seven-year hiatus, while two other foreign carriers i.e KLM Royal Dutch Airlines and All Nippon Airways, will resume non-stop flight operations to Amsterdam and Tokyo respectively after temporarily ceasing operations due to COVID-19 pandemic. In addition, Malaysia Airlines is increasing its flight frequency to Tokyo from November 2022, in anticipation of the surge in travel demand following the reopening of Japan's borders to international travellers. AirAsia Group meanwhile is focusing on its medium haul operations by increasing its Malaysia AirAsia X flights to 44 weekly across 10 routes commencing November 2022.

Istanbul SGIA overall passenger movements also continued to register international passenger growth as it records a larger share of international to domestic passenger mix in September 2022. This ongoing structural change is a positive development in view of the capacity challenges.

The International Air Transport Association (IATA) forecasted 2022 global traffic to reach 82.4% of pre- COVID level as Bank Negara Malaysia forecasts 2022 gross domestic product (GDP) to be between 5.3% to 6.3%. The outlook for the national aviation industry is improving day by day as industry players are working very closely with the government to ensure that Malaysia receives about 10.0 million international tourists by year-end.

  1. Group Initiatives

    MAHB is pivoting towards a propensity for growth, making concerted efforts in seeking out revenue generation and actively unlocking untapped opportunities to strengthen its financial position. In addition, MAHB continues to take pre-emptive measures in implementing cost optimisation plan as well as continue its cash conservation measures. These measures include recalibrating operational efficiencies i.e. rebasing cost, operational process flow review and prioritizing capital expenditure to conserve cash reserves to ensure that the Group is able to meet its financial and operational obligations.