8 December 2016
MALAYSIA Airports Holdings Bhd (MAHB) expects to record strong fourth-quarter results this year and end the year on a positive note, encouraged by healthy passenger growth as well as airline arrivals.
“We are optimistic about scoring solid results given that the fourth quarter is traditionally a good period when travel picks up,” MAHB managing director Datuk Badlisham Ghazali told Business Times.
He said the optimism was driven by its aero and non-aero businesses.
For the January-October period, there were 72.53 million passengers passing through Malaysian airports, up 5.4 per cent from 68.8 million a year ago.
International passenger numbers grew 12.9 per cent to 3.57 million in October from 3.16 million a year ago, while domestic passenger movements rose 14.9 per cent to 3.75 million from 3.26 million previously.
In terms of overall aircraft movements at the 39 airports in the country, MAHB recorded a 4.5 per cent increase to 69,324 in October from 66,325 a year ago.
On how MAHB intended to increase its non-aero revenue for this year, Badlisham said it would aggressively promote Kuala Lumpur International Airport 2 (klia2).
He said not all retail elements had opened at klia2.
“And that’s because want more people to use klia2, then only will we open up retail opportunities.”
Badlisham noted that klia2 was built to cater for 45 million people.
It currently handles about 28 million to 29 million passengers and he is confident profit will rise as the airport sees higher usage.
He said for now, there was no point in opening more shops.
“We need to make sure passengers go through that area (the airport) before we open other retail opportunities.”
To date, almost 60 per cent of the retail components at klia2 are open for business.
MAHB’s non-aero business consists of hotel operations, retail and rental, which contributes 49 per cent to the company’s revenue.
Badlisham said the company hoped to maintain the 50:50 revenue contribution from its aero and non-aero businesses.
On another way to increase its non-aero revenue, he said MAHB would develop its land in Subang.
“We have been marketing it to aerospace players. We are not tendering but looking for investors to come in.”
Badlisham said MAHB expected to seal deals for the development of the 24ha site by the third quarter of next year. He said it was talking to several parties, including foreign investors.
MAHB shares closed two sen higher at RM6.22 on Bursa Malaysia yesterday.
Most research firms have a “buy” call on the stock, with Nomura setting a target price of RM8.
Original Source: nst