MAHB Q3 Revenue Increased By 4%
25 November 2009
Sepang, 25 November 2009 - Malaysia Airports Holdings Berhad (MAHB) recorded a revenue of RM377.4 million for the third quarter which ended 30 September 2009, slightly higher than the RM364.5 million reported for the same period last year.
The third quarter increase was mainly due to the growth in airport operations arising from a 20% growth in total passenger movements. However, the
passenger growth was mainly from the newly expanded LCCT where the passenger service charges are much lower as compared to the main terminal resulting in a
much lower than expected revenue.
On the other hand, profit before tax in the third quarter this year was recorded at RM111.2 million against RM134.2 million in the same quarter last year, which is 17.1% lower. Last year for the same period there was a significant write back in bad debt provision and MAHB also enjoyed a much higher contribution from the agriculture segment where the total crop harvested and the fresh fruit bunch prices were much higher. In addition, finance costs increased significantly this year due to borrowing arising from a settlement payment pursuant to the signing of new operating agreements early this year.
For the year to date's performance, MAHB achieved a much higher 7.4% growth in revenue, recording RM1.160 billion this year against RM1.080 billion last year. Profit before tax for this year to date was RM322.1 million which is marginally lower by 1.5% as compared to RM326.9 million recorded last year. The lower profit before tax was mainly due to higher finance and depreciation costs as well as a significantly lower contribution from the non-airport operations, particularly the agriculture and hotel segment.
According to MAHB's Managing Director, Tan Sri Bashir Ahmad, "This is a very challenging year for us. Although overall passenger movements have grown, we continue to depend on increasing revenue from our commercial activities. Therefore, our Retail Optimisation Program (ROP) was crucial to ensure our overall revenue growth is sustained. Our efforts on ROP at the LCCT and KLIA Main terminal have contributed to a double-digit growth increase in our commercial revenue, comprising of rental, advertising, retail, food and beverage activities. The expansion of the LCCT from 10 million passengers per annum (mppa) to 15 mppa was completed in March this year and the ROP at the Satellite building and Contact Pier is now fully completed. Therefore, we will definitely see a much higher contribution from our retail and rental business from here onwards."
Tan Sri Bashir added "We also had to tackle our cost structure which is not easy for an airport operator as a significant portion is already fixed in nature. We really had to challenge convention, relook at old practices and deploy new technology to ensure our charges to the airlines remain as is, which is amongst the lowest in the world. One such example is the introduction of Lean Management whereby non-value added activities are identified to reduce wastage and ultimately enhance our operational and financial performance".
"We remain optimistic that the Group's Headline Key Performance Indicators (KPIs) will be achieved. In addition, our airline customers are excited with the launch of the Airline Recovery Program which we trust will assist the airlines to deliver further growth in passenger volume in the future. Finally, with our improving financial position, we are able to continue and maybe even enhance our dividend payouts as well.' Tan Sri Bashir concludes.