4 August 2017
Malaysia Airports Holdings Berhad has reported a +15.9% leap in retail revenues year-on-year for the first half of 2017, to RM412.9 million (US$98 million). Non-aeronautical revenues at the group, which runs Malaysia’s major airports as well as having a stake in Istanbul Sabiha Gökcen Airport in Turkey, rose by +9.3% to RM981 million (US$233 million).
Malaysia Airports attributed the growth to increased international passenger traffic (+15.1%) as well as higher spending from North Asian and ASEAN region passengers.
Retail and F&B gross sales at Kuala Lumpur International Airport (KLIA) and low-cost terminal klia2 combined – the key locations for commercial activities at the group – reached RM1,022.5 million (US$242 million). Sales per passenger hit RM35.97 (US$8.53), a healthy +11.1% rise year-on-year.
Malaysia Airports’ retail arm Eraman posted revenue of RM356.2 million (US$84.5 million) across KLIA and klia2 in the half, up by +14%. Sales per passenger dipped by -0.5% however to RM12.53 (US$2.97).
Malaysia Airports said: “Despite the higher revenue for Eraman arising from higher spending passengers and higher average prices of liquor and cigarettes, revenue per passenger dropped due to the relocation of [airline] Malindo on 15 Mar 2016.”
At Istanbul Sabiha Gökcen Airport, where the concessionaire is Setur Duty Free, non-aeronautical revenue was down -11.4%, to €38.1 million. Duty free rental income dropped -15.1%, to €20.5 million.
Malaysia Airports said the decrease in duty free rental income was mainly due to a decrease in guaranteed spending per passenger (down -26% from €12.84 in 2016 to €9.50) – despite a rise in international passenger traffic. Average spend per passenger dropped -6.0% from €9.86 to €9.27.
Other rental and commercial revenue slipped -4.2% to €11.7 million, while revenue from car parking fell -13.8% to €4.7 million.
Overall revenue at Sabiha Gökcen was down -5.1%, to €91.3 million.
Passenger traffic at Kuala Lumpur’s airports climbed by +14.5% in the half to 24.8 million, with international traffic rising +15.8% to 20.4 million. Total group traffic climbed by +9.5%.
Original Source: moodiedavittreport