22 February 2018

Higher passenger growth and aircraft movements helped Malaysia Airports Holdings Bhd (MAHB) to register a threefold rise in earnings for the financial year of 2017 (FY17).

MAHB

The country’s largest airport operator recorded a net profit of RM237 million for the January-December 2017 period compared to RM73 million recorded in 2016.

The company told Bursa Malaysia that its revenue rose RM4.65 billion, an 11.5% increase from RM4.17 billion recorded in 2016.

“Operations recorded passenger movement growth of 8.7% to 96.6 million compared to 88.9 million in 2016,” the company said yesterday.

In FY17, Kuala Lumpur International Airport’s (KLIA) passenger footfall traffic at the main terminal rose by 11%, while traffic at KLIA2 increased by 11.8%.

“The increase in the passenger traffic — mainly in its international traffic — was driven by the visa relaxation measures for Chinese and Indian tourists, increase in umrah traffic and tourism promotion,” MAHB said.

In the fourth quarter, however, MAHB recorded a decrease in net profit from RM37.12 million to RM27.85 million recorded a year ago.

The group’s revenue for the current quarter was mainly contributed by airport operations — which dropped by RM34.9 million, or 2.9%, to RM1.25 million against RM1.21 million in the immediate preceding quarter.

At the same time, MAHB recorded a lower profit before tax and zakat of RM51.5 million versus RM84.6 million a year ago due to an unfavourable variance of 39.1%, or RM33.1 million.

“The unfavourable variance was due to higher total costs of RM155.1 million, or 14.6%, cushioned by higher revenue of RM108.9 million, or 10.1%,” it said.

The group proposed a final single-tier dividend of eight sen per ordinary share for the financial year ending Dec 31, 2017.

Original Source: themalaysianreserve