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Kuala Lumpur, Kuala Lumpur, Malaysia

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Quarterly Report For The Financial Period Ended 31 December 2021

Financials Archive

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Condensed Unaudited Consolidated Statement Of Profit Or Loss for The Period Ended 31 December 2021

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 31 December 2021

Income Statement

Performance Review

Income Statement

4Q 2021 vs 4Q 2020 (Q-on-Q)

Revenue

The Group's revenue for the current quarter increased significantly by 109.1% over the corresponding quarter in the prior year to RM551.3 million in tandem with the significant increase in passenger volumes for the Group with the easing of the Movement Control Order (MCO), interstate travel and introduction of Vaccinated Travel Lane (VTL) in Malaysia coupled with continued positive recovery momentum in Turkey.

Revenue from airport operations increased significantly by 128.9% to RM492.6 million. Aeronautical segment revenue increased from RM109.7 million to RM268.8 million as compared to the corresponding quarter in the prior year. Turkey operations showed signs towards normalisation as passenger traffic had increased from 4.6 million to 7.5 million passengers during the same period. Passenger traffic for the Malaysia operations had also improved significantly to 6.7 million passengers as compared to 2.1 million passengers in the corresponding quarter in the prior year. The nonaeronautical segment revenue increased from RM105.5 million to RM223.8 million largely due to the impact of rental rebate granted to the tenants and airlines in the corresponding quarter in the prior year, whilst in the current quarter saw further improvement in Turkey non-aeronautical contribution.

Revenue from the non-airport operations increased by 21.3% or RM10.3 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 136.8% to RM233.2 million and 107.1% to RM293.7 million respectively. Whereas, Qatar operations recorded marginal increase in revenue by 4.7% to RM24.4 million.

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

The Group LBT narrowed to RM215.0 million, a significant improvement as compared to a higher LBT of RM1,075.1 million in the corresponding quarter in the prior year due to higher revenue by 109.1% coupled with lower core operational expenses1 by 8%. Higher LBT in the corresponding quarter in the prior year was also contributed by the impairment of RM500.4 million in ISG's concession rights.

Malaysia operations recorded a LBT of RM193.7 million, whilst Turkey operations recorded a LBT of RM22.3 million, both lower than the LBT in the corresponding quarter in the prior year of RM448.1 million and RM626.8 million respectively. Qatar operations recorded a PBT of RM1.0 million as compared to LBT of RM0.2 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 RM136.7 million.

Share of results of Associates and Joint Ventures (JV)

In the current quarter under review, the share of results from associates recorded a loss of RM0.8 million, lower by RM7.6 million as compared to a loss of RM8.4 million for the corresponding quarter in the prior year. Lower losses was due to Cooling Energy Supply Sdn. Bhd. (CES) and KAF registering a share of profits of RM1.0 million and RM0.5 million respectively, and the narrowing of share of losses from MFMA Development Sdn. Bhd. (MFMA) from RM6.6 million losses registered in the corresponding quarter in the prior year to RM2.0 million.

Share of results of joint ventures in the current quarter under review recorded losses amounting to RM10.6 million as compared to the profit of RM5.0 million for the corresponding quarter in the prior year largely due to higher share of losses from SASB of RM13.0 million, offset by lower share of profit from Airport Cooling Energy Supply Sdn. Bhd. (ACES) of RM2.4 million.


Commentary On Prospects

MAHB's network of airports recorded 36.1 million passengers in the current year under review from 1 January 2021 to 31 December 2021, a contraction of 16.0% over the prior year. During the year, the Group's traffic for international and domestic passengers contracted by 30.4% and 8.5% respectively. Correspondingly, the Group's aircraft movements decreased by 12.9% with both international and domestic aircraft movements decreasing by 11.2% and 13.6% respectively.

The Group’s traffic for the current quarter under review from 1 October 2021 to 31 December 2021 grew by 43.4% to 14.2 million passengers as gradual travel relaxation measures were implemented in Malaysia.

  1. Malaysia Operations

    Passenger traffic at MAHB operated airports contracted by 58.5% to 10.7 million passengers in the current year under review. Traffic for international and domestic passengers contracted by 86.3% to 1.3 million passengers and 42.3% to 9.4 million passengers respectively. Malaysia traffic recovery shows resilience with strong pent-up demand following each easing of the Movement Control Orders (MCOs). Traffic for the current quarter under review showed marked recovery, growing by 5.8 times to 6.7 million passengers compared to the 1.0 million passengers recorded in the immediate preceding quarter. Growth in international traffic gradually began to show some improvements with more relaxed rules, acceptance of digital or vaccines certificates and travel bubbles such as Vaccinated Travel Lane (VTL).

  2. Overseas Operations

    ISGIA passenger traffic improved by 47.7% to 25.4 million passengers in the current year under review. International passenger and domestic passenger was higher by 69.8% and 37.8% respectively. ISGIA traffic rebound was more apparent within a year after the pandemic outbreak. Travel restrictions were lifted gradually from the end of the first quarter in 2021, in anticipation of the peak summer season and the high vaccination rates. The equivalent acceptance of the EU Digital COVID certificate and Turkish COVID-19 certificate had helped fuelled passenger movements to and within Turkey. Nonetheless, the recent escalation of conflict between Russia and Ukraine had led to the temporary closure of Ukraine air space. In this respect, the Group is cautiously monitoring the development of conflict and continuously assessing the impact to our international travel for ISGIA.

  3. Outlook

    Despite the on-going uncertainties due to the new emergence of variants of concern (VOC), MAHB is cautiously optimistic in forecasting gradual traffic recovery in 2022. The Malaysia Aviation Commission's (MAVCOM) Waypoint Report issued in December 2021 forecasted passenger movements for 2022 to reach between 32.6 million to 49.0 million or 30% to 45% of 2019 passenger movements driven predominantly by flights to domestic and ASEAN markets.

    The SIN-KUL VTL, resumption of Umrah travel and the introduction of several new domestic routes are some of the recent developments which will continue to drive traffic recovery in the near term. MAHB remains cautiously optimistic on the continued recovery, whilst closely monitoring the developments of the VOC, booster vaccines efficacy and travel restrictions and its impact to the passenger traffic recovery.

  4. Group Cost Optimisation Initiatives

    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 prioritising capital expenditure to conserve cash reserves and ensure that the Group is able to meet its financial and operational obligations. As at 31 December 2021, the Group had achieved a further reduction of 11% of the core operational expenses1 or RM172.3 million in addition to the 26% or RM575.5 million achieved in the prior year.