Our Investment case Our Leadership Statement ANNUAL REPORT 2023 110 Prologue OPERATIONAL REVIEW Rental and royalties Retail sales of duty free and non-dutiable goods Boost operational occupancy of commercial spaces Eraman brand and outlet revitalisation Brand experience and partnerships Digitalisation Revitalise essential commercial offerings Leverage on strong partnerships KEY PRIORITIES NONAERONAUTICAL BUSINESS The two main components of the Group’s non-aeronautical business are first, rental and royalties derived from leasing out airport space for commercial use, and secondly, retail sales of duty free and nondutiable goods by our subsidiary, Malaysia Airports (Niaga) Sdn Bhd which is better known by its brand name, Eraman. The Group’s strategy in this business segment has been centred on the revitalisation of first, commercial offerings and spaces at airports under the on-going Commercial Reset, and secondly, the Eraman brand and outlets. Revitalisation Efforts Yield Results Aided By Strong Recovery In Air Traffic In 2023, Group-wide non-aeronautical revenues grew 57.1% YoY to RM1,894.9 million. Revenues from rental and royalties stood at RM1,143.5 million, a YoY increase of 41.7%. Notably, retail sales of duty free and non-dutiable goods by Eraman contributed revenues of RM571.1 million, 117.6% higher than the previous year. This is underpinned by the acceleration of operational occupancy of the commercial spaces at the airports which
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