Quarterly Report For The Financial Period Ended 30 September 2024

Financials Archive

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

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

Performance Review

3Q 2024 vs 3Q 2023 (Q-on-Q)

Revenue

The Group’s revenue for the current quarter increased by 20.0% over the corresponding quarter in the prior year to RM1,532.2 million. This growth was driven by higher passenger volumes resulting from new airline operations and additional flight frequencies to and from international sectors, further supported by the implementation of 30-day visa-free policy for China and India travellers to Malaysia.

Revenue from airport operations increased by 20.7% from RM1,196.4 million to RM1,443.9 million. Aeronautical segment revenue increased from RM701.9 million to RM891.5 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 36.2 million from 32.7 million passengers in the corresponding quarter last year. Passenger traffic for Malaysia operations increased to 24.8 million from 21.8 million in the corresponding quarter. Meanwhile, Türkiye operations saw a slight increase in passenger traffic, rising from 10.9 million to 11.4 million passengers during the same period. Nonaeronautical segment revenue increased from RM494.5 million to RM552.4 million, largely due to improved contribution of commercial revenue from Malaysia and Türkiye operations.

Revenue from non-airport operations increased by 10.5% or RM8.4 million from RM79.9 million to RM88.3 million due to higher revenue from the hotel, agriculture and project and repair maintenance businesses.

Overall, Malaysia operations had recorded an increase in revenue by 30.5% from RM764.5 million to RM997.9 million, while Türkiye and Qatar operations recorded a marginal increase in revenue from RM485.9 million to RM507.5 million and from RM25.9 million to RM26.8 million, respectively.

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

In the current quarter under review, the Group recorded a PBT of RM250.4 million, an increase by RM163.3 million from RM87.1 million in the prior year's corresponding quarter, driven by higher revenue. In line with higher revenue, the Group 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 Türkiye operations registered a PBT of RM205.0 million and RM42.4 million, respectively, higher compared to RM55.9 million and RM27.1 million recorded in the corresponding quarter in the prior year. Qatar operations recorded a PBT of RM3.0 million, a slight decrease of RM1.1 million from RM4.1 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 RM4.6 million, lower by RM4.1 million as compared to RM8.7 million for the corresponding quarter in the prior year. Lower share of profits were mainly due to lower contribution from KL Aviation Fuelling System Sdn. Bhd. ("KAF"), with profits reduction from RM8.7 million to RM2.9 million. However, this was offset by higher profits from MFMA Development Sdn. Bhd. ("MFMA") of RM1.0 million, Cooling Energy Supply Sdn. Bhd. ("CES") of RM1.8 million and lower losses contributed by Alibaba KLIA Aeropolis Sdn. Bhd. ("Alibaba KLIA Aeropolis") of RM1.1 million as compared to a loss of RM1.4 million recorded in the corresponding quarter in the prior year.

Share of results of joint ventures in the current quarter under review recorded profits of RM6.4 million, higher by RM4.6 million as compared to RM1.8 million recorded in the corresponding quarter in the prior year. This is contributed by higher share of profit from both joint ventures, Segi Astana Sdn. Bhd. ("SASB") and Airport Cooling Energy Supply Sdn. Bhd. ("ACES"), contributing RM3.5 million and RM2.9 million, respectively.

Commentary On Prospects

MAHB continues to demonstrate resilience in profitability and steady cash flow growth, driven by the ongoing recovery in passenger traffic. As we moving towards the end of FY2024, MAHB anticipates further growth, with passenger traffic expected to approach pre-pandemic levels, particularly from key markets such as China, India, and Southeast Asia. The relaxation of visa requirements remains a key contributor to increased passenger arrivals.

Ongoing efforts to attract new airlines and routes, coupled with the resumption of services by existing carriers, are expected to further drive 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. Airports Council International ("ACI") in September 2024 indicated that, the Asia-Pacific region is projected to grow by 13% year-on-year in 2024, primarily driven by strong recoveries in China and India. According to the Malaysian Aviation Commission ("MAVCOM"), Malaysia is expected to meet its initial passenger traffic forecast, now refined to a range of 95.4 million to 97.6 million passengers for the full year of 2024 (previously estimated at 93.9 million to 107.1 million passengers). Globally, ACI forecasts passenger volumes in 2024 to exceed 2019 levels by 4% and to increase by 10% compared to 2023.

Overall, with a robust recovery trajectory, strategic initiatives to boost passenger numbers, and positive industry forecasts, the prospects for MAHB in the coming year appears 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.