MALAYSIA Airports Holdings Bhd (MAHB) recorded a lower net profit of RM537.04 mil for the financial year ended Dec 31, 2019 (FY19) from RM727.30 mil in FY18.
Revenue, however, increased 7.4% to RM5.21 bil from RM4.85 bil previously, largely attributed to the encouraging operational performance both in Malaysia and Turkey, it said in a filing with Bursa Malaysia yesterday (Feb 28).
With the combined operating performance of the Istanbul Sabiha Gokcen International Airport (ISG), the group’s network of airports handled 140.6 million passengers in FY19, representing a 5.6% growth over FY18.
Passenger traffic for Malaysia operations grew by 6.1% to 105.2 million passengers in FY19.
ISG recorded 35.5 million passengers in FY19, an improvement of 4.1% over FY18. Revenue from Turkey operations for the same period rose by 18.7% to RM1.29 bil, while earnings before interest, tax, depreciation and amortisation (EBITDA) for the period amounted to RM961.2 mil or 10.1% higher than FY18.
“We foresee passenger traffic will recover the lost ground in the medium to long term as there is latent demand for travel based on average high load factors.
“In addition, the Visit Malaysia Year 2020 may to a certain extent cushion the adverse impact from COVID-19, provide confidence for air travel returns in the next few months. Historically, during normal Visit Malaysia Years, the international traffic growth had been commendable with a double-digit growth,” the company said in a separate statement.
ISG, meanwhile, is expected to consolidate its international traffic further, while some moderation in the decline of the domestic passengers is foreseen for 2020.
“This on-going structural change is a positive development in view of the capacity challenges at ISG in the immediate term. However, airlines are projected to continue raising their load factor growth in 2020, with ISG still currently able to accommodate such growth with its existing runway and terminal capacity,” it said.
The company highlighted that it takes cognisance of the current market conditions, remaining cautious of the challenging operating environment.
“The group has put in place mitigation plans to weather through the impediments. MAHB will ensure the continuity of its operations with resilient and agile business strategy in place.
“The year 2020 proffers great opportunities and MAHB is fully committed to continue its crucial role in leading the aviation industry and facilitating the economic aspirations of the country. MAHB will continue its efforts and endeavours to deliver world-class service qualities to its stakeholders by embedding a customer-centric culture in airport operations,” it said.
The board of directors recommends a final dividend of 10.0 sen per share for FY19. Together with the earlier interim dividend of 5.0 sen per share, the total dividend for the year is 15.0 sen per share. – Fb 29, 2020, Bernama
