Section Heading

Kuala Lumpur, Kuala Lumpur, Malaysia

Temperature 24 °C Cloudy

Section Heading

Section Heading

Quarterly Report For The Financial Period Ended 30 September 2021

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 30 September 2021

Income Statement

Condensed Unaudited Consolidated Statement of Financial Position As At 30 September 2021

Income Statement

Performance Review

Income Statement

3Q 2021 vs 2Q 2021 (Q-on-PQ)

Revenue

The Group's revenue for the current quarter under review increased by 42.6% to RM461.3 million against RM323.4 million in the immediate preceding quarter primarily due to higher passenger volumes for Turkey operations due to the relaxation of border and inter-city travel in Turkey.

Revenue from airport operations increased by 47.7% to RM406.7 million over the immediate preceding quarter. Aeronautical segment revenue increased from RM153.3 million to RM233.4 million as compared to the immediate preceding quarter due to the increase in passenger traffic for Turkey operations by 85.4% from 4.8 million passengers to 8.9 million passengers, in line with further relaxation in travel restrictions in Turkey. Passenger traffic for the Malaysia operations contracted by 23.1% to 1.0 million passengers as compared to 1.3 million passengers recorded in the immediate preceding quarter impacted by the continuation of the MCO and renewed total lockdown from 1 June 2021.

Revenue from the non-airport operations increased marginally by 13.8% or RM6.6 million due to higher revenue from the hotel, agriculture and project and repair maintenance businesses.

Overall, Malaysia had recorded an increase in revenue by 20.3% to RM151.3 million. Turkey operations had recorded increase in revenue by 63.3% to RM287.9 million while Qatar operations revenue registered RM22.1 million slightly higher than RM21.3 million recorded in the immediate preceding quarter.

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

The Group LBT of RM254.9 million narrowed as compared to LBT of RM290.5 million in the immediate preceding quarter due to increase in revenue by 42.6% coupled with marginal decrease in core operational expenses1. However, the share of results of associate and joint venture companies registered higher losses whilst finance cost, depreciation and amortisation registered marginal increase in the current quarter under review.

In the current quarter under review, Malaysia and Turkey operations recorded LBT of RM193.1 million and RM64.1 million as compared to LBT of RM210.2 million and RM82.8 million recorded in the immediate preceding quarter, respectively. Whereas, Qatar operations recorded slightly lower PBT of RM2.3 million as compared to RM2.5 million recorded in the immediate preceding quarter.

The Group's LBT however was mitigated by the recognition of deferred tax asset arising from the current period business losses. Accordingly, the Group recorded loss after taxation (LAT) of RM182.3 million.

Share of results of Associates and Joint Ventures (JV)

In the current quarter under review, the share of results from associates recorded losses amounting to RM2.0 million, higher by RM0.5 million as compared to the losses of RM1.5 million for the immediate preceding quarter largely attributed by the share of loss from Cooling Energy Supply Sdn. Bhd. of RM1.7 million.

Share of results of joint ventures in the current quarter under review recorded profits amounting to RM0.2 million, lower by RM4.3 million as compared to RM4.5 million for the immediate preceding quarter largely due to share of loss from SASB of RM1.6 million as compared to a profit of RM2.9 million recorded in the immediate preceding quarter.


Commentary On Prospects

MAHB’s network of airports recorded 21.9 million passengers in the current period under review from 1 January 2021 to 30 September 2021, a contraction of 39.7% over the corresponding period in the prior year. During the same period, the Group’s traffic for international and domestic passengers contracted by 51.1% and 33.0% respectively. Correspondingly, the Group’s aircraft movements decreased by 32.2% with both international and domestic aircraft movements decreasing by 28.6% and 33.8% respectively.

  1. Malaysia Operations

    Passenger traffic at MAHB operated airports contracted by 83.1% to 4.0 million passengers in the current period under review. Traffic for international and domestic passengers contracted by 91.4% to 0.8 million passengers and 77.8% to 3.2 million passengers respectively. Malaysia domestic traffic performance registered encouraging improvements after the launch of Langkawi travel bubble programme from 16 September 2021. The recent Government announcement on the reopening of interstate borders and the relaxed rules for fully vaccinated Malaysian residents to travel abroad from 11 October onwards is positive news for the aviation sector to restart with better prospects for a gradual recovery.

  2. Overseas Operations

    ISGIA passenger traffic improved by 42.1% to 17.9 million passengers in the current period under review. International passenger and domestic passenger higher by 42.5% and 41.9% respectively. ISGIA benefited from less rigorous travelling measures and the robust domestic market continued to experience traffic recovery.

  3. Outlook

    National Immunisation Plan (PICK) vaccination drive had reached its milestone of 90% of adult population being fully vaccinated, a target that led to the much-awaited announcement from the Government to allow fully vaccinated Malaysian residents to travel interstate and relaxing travel restrictions to travel abroad. The encouraging announcement coupled with MAHB's initiatives ensuring health, safety and world-class passenger experience, would help elevate Malaysia's traffic prospect for a favourable recovery in the near term as the aviation sector restarts and ultimately reach normalisation.

    ISGIA passenger movements continue to spearhead traffic recovery for the MAHB of airports, sustaining growth momentum with September 2021 passenger movements reaching 86% of September 2019 passenger volume.

  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 30 September 2021, the Group had achieved a reduction of 12% of the core operational expenses1 or RM143.3 million as compared to the corresponding period in the prior year.