MAHB 1Q net loss narrows 53% to RM105m amid further eased travel restrictions

KUALA LUMPUR (May 30): Malaysia Airports Holdings Bhd (MAHB) reported a net loss of RM104.76 million for the first quarter ended March 31, 2022 (1QFY22), a 52.66% decrease from RM221.3 million last year, boosted by improved revenue.

MAHB noted that its net loss for the quarter despite an increase in depreciation in line with traffic and higher finance cost.

“Other cost increase [was] preeminent due to increase in user fees payable under the operating agreement and other revenue share payables to the concessionaire. however, core operational expenses marginally increased by RM1.3 million,” it added.

Loss per share improved to 7.17 sen from 14.19 sen, according to the group’s bourse filing on Monday (May 30). Revenue for the quarter surged 69.44% to RM570.85 million as compared to RM336.91 million a year ago, in tandem with a significant increase in passenger volumes.

The group added that the increased passenger volumes were driven by further easing of travel restrictions and quarantines, reopening of borders via vaccination travel lane (VTL) arrangements by several countries and the gradual transition to an endemic phase.

MAHB said revenue from its airport operations increased 74.8% to RM510.2 million. Its aeronautical segment’s revenue doubled to RM294.8 million on the back of traffic recovery with total passenger traffic of 14.7 million passengers in the quarter under review as compared to 5.9 million a year ago.

“Malaysia operations passenger traffic improved significantly to 8.3 million as compared to 1.7 million passengers in the corresponding quarter in the prior year.

“Turkey operations continued to show passenger traffic recovery from 4.2 million to 6.4 million passengers during the same period,” the group said.

Meanwhile, it said its non-airport operations’ revenue increased by 34.7% to RM15.6 million due to higher revenue from the project and repair maintenance, agriculture and hotel business.

“Overall, Malaysia and Turkey operations had recorded a significant increase in revenue by 67.1% to RM273.1 million and 80.7% to RM275.1 million respectively, [while] Qatar operations recorded a marginal increase in revenue by 6.1% to RM22.6 million.

The share of results from associates stood at a profit of RM1.9 million as compared to a loss of RM800,000 a year prior, due to profits from KAF, MFMA Development Sdn Bhd and Alibaba KLIA Aerospace Sdn Bhd, but was offset by losses from Cooling Energy Supply Sdn Bhd.

Share of results of joint ventures posted a loss of RM200,000 as compared to a loss of RM1.4 million a year ago, as a result of Segi Astana Sdn Bhd’s share of losses, but was negated by Airport Cooling Energy Supply’s lower share of profit.

Going forward, MAHB said further relaxation of Covid-19 standard operating procedures is expected to further facilitate the resumption of international traffic.

It noted that its passenger movements of 14.7 million recorded in 1QFY22 is the highest since the Covid-19 outbreak was declared as a global pandemic on March 11, 2020.

“The positive development is a significant milestone for the network of airports as it signals a turning point for a realistic and optimistic traffic recovery, albeit at a different pace of recovery between Malaysia and Turkey operations,” it added.

Shares in MAHB finished six sen or 0.93% higher at RM6.52, giving the group a market capitalisation of RM10.82 billion.

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