MAHB Registers Double Digit Year-On-Year Passenger Growth At 12.0% For 9M11
25 October 2011
Sepang, 25 October 2011 - Malaysia Airports Holdings Berhad ("MAHB") recorded revenues of RM1,917.4 million for the nine months ended 30 September 2011
("9M11"), representing a growth of 16.4% or RM270.0 million higher than the RM1,647.4 million recorded in the corresponding period in 2010 ("9M10").
Earnings before interest, tax, depreciation and amortization ("EBITDA") grew 16.4% or RM81.6 million to RM580.5 million, from RM498.9 million in 9M10.
Profit before tax and zakat ("PBT") stood at RM412.2 million, representing an increase of 41.0% or RM119.8 million compared to the RM292.4 million
registered in 9M10.
In line with the adoption of IC Interpretation 12: Service Concession Arrangements ("IC 12") effective 1 January 2011, MAHB recognizes the construction revenues and costs in accordance with FRS 111: Construction Contracts by reference to the stage of completion of the construction works of Klia2 and Penang International Airport, which are public sector infrastructure assets and services currently being undertaken by MAHB.In 9M11 and 9M10, MAHB recognizes the construction revenues and costs in relation to the aforesaid projects amounting to RM506.2 million and RM328.9 million respectively.
Stripping out the effects of IC 12, revenues for 9M11 was RM1,411.3 million, which was 7.0% or RM92.8 million higher than the RM1,318.5 million registered in 9M10. PBT for 9M11 was RM412.2 million, which was 41.5% or RM120.8 million higher than the RM291.4 million registered in 9M10.
Commenting on MAHB's performance, its Managing Director Tan Sri Bashir Ahmad Abdul Majid attributed the increase in operating revenues to stronger results from the airport operations segment, driven by strong air travel demand. MAHB recorded a double digit passenger growth of 12.0% in 9M11, with a total of 47.4 million passengers passed through MAHB's 39 airports in Malaysia. Both international and domestic passenger movements registered strong growth at 12.2% and 11.7% respectively. The total passenger movements in KLIA improved by 12.4%, whereby both KLIA-MTB & LCCT recorded positive growth of 9.6% and 15.8% respectively. All other airports recorded an aggregate growth in total passenger movements of 11.4%.
Total aircraft movements grew by 9.5% to 471,461 aircrafts, with the international sector recording a higher growth of 11.6% compared to the domestic sector, which registered a 8.4% growth.
"Excluding the IC 12 effects, revenues generated by our airport operations segment improved by 6.1% or RM74.4 million, to RM1,300.8 million. Aeronautical revenues which improved by 0.1% or RM0.3 million on the back of stronger passenger numbers, was however, impacted by the accrual of Airline Incentives in 9M11 amounting to RM90.0 million as compared to RM27.7 million accrued in 9M10. The airline incentives were granted to eligible airlines under the Airlines Recovery Program ("ARP") announced on 18 November 2009 and effective for a period of three years ending 31 December 2011." Tan Sri Bashir Ahmad said.
Our non-aeronautical revenues recorded growth of 12.6% or RM74.1 million to RM661.4 million on the back of improved performance in the retail and rental businesses. MAHB's own retail business grew by 16.3%, ahead of overall passenger traffic growth of 12.0%, to RM343.1 million in 9M11. This was due to an increase in passenger volume and higher retail spending per passenger. Revenues from rental of space, advertising and other commercial segments also grew by 8.9%, or RM26.0 million, to RM318.3 million, contributed mainly by the addition of new tenants and upward revision of rental charged to some retail tenants effective December 2010 and increased carpark revenue due to higher pax movements and larger number of airport visitors." Tan Sri Bashir Ahmad added.
The non-airport operations segment recorded revenues of RM110.5 million in 9M11, representing a growth of 20.0% or RM18.4 million from RM92.1 million recorded in 9M10, due to higher revenues recorded in all non-airport operations business, namely hotel segment, agriculture and horticulture segment and project and repair maintenance segment. The hotel segment grew 18.1% or RM8.2 million to RM53.4 million, mainly attributed to higher room occupancy rates, improved average room rates and higher food and beverages income. Despite lower production volume, the agriculture and horticulture segment registered revenues of RM44.1 million in 9M11, which was 29.3% or RM10.0 million higher than the RM34.1 million registered in 9M10, due to higher fresh fruit bunch price (2011: RM705/60,807MT vs. 2010: RM509/65,660MT). The reduction in the total crop harvested was due to the 1,721 hectares of land surrendered for the construction of klia2 and other land development initiatives to date. The project and repair maintenance segment recorded a marginal growth of 1.4% or RM0.2 million to RM13.0 million, mainly due to receipt of project management fee.
"Passenger demand has been stronger than anticipated given the current gloomy economic outlook. Given the challenges the world face today - looming European debt crisis, upheaval in the Middle East, earthquake in Japan and volatile oil prices, the aviation industry has again shown resilience and hold up relatively well. The International Air Transport Association ("IATA") has recently estimated a 5.9% world passenger traffic growth for 2011, an upward revision from an earlier forecast of 4.4% in June 2011. However, IATA attributed the higher-than-expected growth to the residual consumer and business confidence stemmed from economic optimism at the beginning of the year, and expects the trend to decelerate given the slowdown in growth in the developed economies. Considering the above factors and the positive momentum in passenger movements registered year-to-date, we remain optimistic that the passenger traffic performance at the airports operated by the Group will remain robust in 2011." Tan Sri Bashir Ahmad concluded.