Malaysia Airports Holdings Bhd’s 2Q net profit slipped 7.5%

KUALA LUMPUR: Malaysia Airports Holdings Bhd’s (MAHB) net profit for the second quarter (2Q) ended June 30, 2009 slipped 7.5% to RM61.59 million from RM66.59 million a year earlier due to higher tax expenses.

Turnover increased 9% to RM392.86 million from RM360.29 million in the previous corresponding period because of a 12.2% growth in airport operations.

“The growth in airport operations was contributed mainly by an 18% growth in aeronautical revenue arising from the encouraging growth of 2.4% in international and 8.2% in domestic passenger movements,” MAHB said yesterday.

In a separate report, the airport operator said total passenger movements in July, including international and domestic passengers, grew 9.4% year-on-year but cargo movements dropped 6.9%. Its non-airport operations saw a 14.6% drop in revenue, mainly because the agriculture segment declined by 36.3% from lower total crop harvested and fresh fruit bunch (FFB) price.

For the six-month period, the group achieved earnings before interest, tax, depreciation, and amortisation (Ebitda) of RM298 million, representing 49% of its targeted headline key performance indicator (KPI) of RM613 million for the year. It is optimistic that the remaining 51% of the targeted Ebitda will be achieved in the second half of the year.

MAHB also recorded 4.8% return on equity (ROE) during the period. Its full-year targeted headline KPI is 10.2%.

MAHB expects the airport operations segment, which is highly dependent on passenger movements at the airports operated by the group, to continue contributing positively to its FY09 revenue.

The International Air Transport Association (IATA) recently announced a revised forecast for global passenger movement to decline by 8% in 2009.

“Initiatives have been taken by the group to grow its non-aeronautical revenue via a retail optimisation plan and the provision of more commercial space at the airports. The recent financial restructuring of the group is expected to further strengthen the future performance of the group,” MAHB said.

The airport operator said it had not seen a negative impact of the Influenza A(H1N1) pandemic on passenger movements in the first half of 2009. “The impact going forward is still uncertain at this stage,” it said.