Five-fold jump in MAHB’s Q2 profit

The international ratings agency said the change in outlook was because of the heightened operating challenges for MAHB

PETALING JAYA: Malaysia Airports Holdings Bhd’s (MAHB) earnings for the second quarter ended June 30 saw a five-fold increase to RM66.9mil on a higher contribution from its Malaysian operations.

The airport operator told the stock exchange that the increase in net profit for the quarter was negated by a higher loss before taxation (LBT) from its overseas operations.

Its Malaysian operations recorded a profit before tax of RM167mil, which was 126.6% higher year-on-year, mainly due to a higher revenue of 13.0% and lower amortisation costs of 34.2% or RM43.3mil, negated by higher operating costs and lower other income.

It said the increase in cost was mainly due to a higher cost of inventories sold, an increase in user fees, staff cost as well as repair and maintenance costs.

“However, this was offset against a decrease in amortisation and depreciation by 34.2% or RM44.3mil, which was due to the extended amortisation and depreciation period in line with the extension of the operating period from 25 years ending 2034, to an additional 35 years ending 2069,” it said in the filing.

In its overseas operations, the Istanbul Sabiha Gokcen International Airport and LGM Havalimani recorded a higher LBT of 29.8% or RM16.7mil mainly due to higher costs by 6.6% or RM19.4mil. MAHB also saw revenue for the quarter increasing by 10.3% to RM1.1bil from a year ago.

It said revenue from its Malaysian and overseas operations for the quarter recorded increases of 13.0% and 2.6%, respectively, compared to the same period last year.

Revenue from its airport operations in Malaysia amounted to RM795.7mil, which was 12.4% or RM87.8mil higher compared to a year ago. The increase in the Malaysian airport operations revenue was mainly attributed to higher non-aeronautical revenue, which rose 16.7% or RM55.9mil. The airport operator said the increase was mainly due to a higher passenger growth, which resulted in higher retail and rental revenues by 20.6% or RM35.6mil and 12.5% or RM20.3mil, respectively.