Quarterly Report For The Financial Period Ended 30 September 2023

Financials Archive

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Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 30 September 2023

Condensed Unaudited Consolidated Statement of Financial Position As At 30 September 2023

Performance Review

3Q 2023 vs 3Q 2022 (Q-on-Q)

Revenue

The Group’s revenue for the current quarter increased by 47.8% over the corresponding quarter in the prior year to RM1,276.3 million. This growth was driven by higher passenger volumes resulting from the airlines route expansion and the resumption of Northern Asia traffic flights, the launch of new airlines operations, summer season travel and a series of public and school holidays within the current quarter under review.

Revenue from airport operations increased by 49.7% from RM799.3 million to RM1,196.3 million. Aeronautical segment revenue increased from RM449.8 million to RM701.8 million as compared to the corresponding quarter in the prior year. This surge was driven by the recovery in traffic, with total passenger numbers for the Group reaching 32.7 million from 24.1 million passengers in the corresponding quarter last year. Malaysia operations saw a surge in passenger traffic, reaching 21.8 million passengers compared to 15.0 million passengers in the corresponding quarter in the prior year. Similarly, Türkiye operations continued to show passenger traffic recovery, increasing from 9.1 million to 10.9 million passengers during the same period. Non-aeronautical segment revenue increased from RM349.5 million to RM494.5 million, largely due to better contribution of commercial revenue from Malaysia and Türkiye operations.

Revenue from the non-airport operations increased by 24.3% or RM15.6 million from RM64.3 million to RM79.9 million due to higher revenue from the project and repair maintenance and hotel businesses.

Overall, Malaysia operations had recorded an increase in revenue by 61.8% from RM472.4 million to RM764.5 million. Whereas, Türkiye and Qatar operations recorded increase in revenue by 32.8% from RM365.8 million to RM485.9 million and 2.0% from RM25.4 million to RM25.9 million respectively.

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

In the current quarter under review, the Group recorded a PBT of RM87.1 million, a marked improvement compared to LBT of RM19.1 million in the corresponding quarter in the prior year. This favourable performance is attributable to increased in revenue, other income, an improved share of profits from associates and joint ventures and lower finance cost for the period. The Group's cost increased due to higher user fees payable under the Operating Agreement and higher revenue share payable under ISG's concession, additional provision for doubtful debts made during the current quarter, higher depreciation, whilst other operational cost increased to meet operational requirements with the increase in passenger traffic.

Malaysia operations showed a significant improvement, registering a PBT of RM55.9 million, a notable increase from the LBT of RM20.5 million recorded in the corresponding quarter in the prior year. Similarly, Türkiye operations performed well, achieving a PBT of RM27.2 million as compared to the LBT of RM2.4 million in the same quarter last year. Whilst, Qatar operations recorded a PBT of RM4.0 million, slightly higher than PBT of RM3.8 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 RM8.7 million, higher by RM9.9 million as compared to share of losses of RM1.2 million for the corresponding quarter in the prior year. Higher share of profits were mainly contributed by KL Aviation Fuelling System Sdn. Bhd. (KAF), MFMA Development Sdn. Bhd. (MFMA) and Cooling Energy Supply Sdn. Bhd. (CES) of RM8.7 million, RM0.9 million and RM0.5 million, respectively. However, this was offset by the share of losses from Alibaba KLIA Aeropolis Sdn. Bhd. (Alibaba KLIA Aeropolis) of RM1.4 million.

Share of results of joint ventures in the current quarter under review recorded profits of RM1.8 million, lower by RM2.4 million as compared to RM4.2 million recorded in the corresponding quarter in the prior year. Lower share of profits were mainly contributed by the lower contribution from Segi Astana Sdn. Bhd. (SASB) and Airport Cooling Energy Supply Sdn. Bhd. (ACES) of RM1.0 million and RM0.8 million, respectively.

Commentary On Prospects

During the current period under review, the airport network operated by MAHB showed ongoing signs of rebound with passenger traffic steadily approaching pre-pandemic levels, reaching 84.9% over the same corresponding period. This resurgence in passenger numbers and connectivity is attributed to the introduction of new airlines and services at key airports, including Kuala Lumpur International Airport (KUL), Penang (PEN), Kota Kinabalu (BKI) and Langkawi (LGK).

Airports Council International (ACI), in its quarterly air travel outlook published in September 2023, projected that global air travel will nearly return to pre-pandemic levels by the end of 2023, with all regions expected to reach this milestone in 2024. Correspondingly, passenger traffic is expected to continue its recovery trajectory in the final quarter of the year, driven by resumption and introduction of new airline services, school holidays peak travel season and a stronger recovery of Chinese inbound traffic. While Türkiye has passed its peak summer travel season, ISGIA’s passenger traffic, particularly international traffic, is expected to remain above pre-pandemic levels driven by airlines’ expansion of their international operations. It is worth noting that the market share for international passenger movements at ISGIA has increased from 40% in 2019 to 52% in September 2023.

MAHB does not foresee any material impact on its operations and traffic volumes arising from the suspension of MYAirline on 12 October 2023. The destinations and routes previously serviced by MYAirline are now seamlessly covered by AirAsia, Batik Air, and Malaysia Airlines. As a result, passengers will continue to have multiple options for air travel to the same destinations.

The outlook for MAHB continues to be resilient as it rides on ongoing passenger traffic recovery and improving commercial operations. Nevertheless, MAHB remains steadfast in its cost and revenue optimisation measures to cushion the impact of inflation and continued economic uncertainties.