23 February 2018
Malaysia Airports Holdings Berhad (MAHB) has reported a +15.4% year-on-year surge in retail revenue to RM853.7 million (US$218 million) for full year 2017.
Retail and food & beverage sales per passenger increased +11.5%. Commercial revenue was up +11.3% to RM734.6 million (US$187.5 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 +10.4% to RM2,043.2 million (US$521.5 million).
MAHB attributed growth in retail, rental and royalty revenue to the stronger spending per passenger at both Kuala Lumpur International Airport (KLIA) and low-cost terminal klia2 – the key locations for commercial activities at the group. It also noted an escalation of rental rates and the currency advantage of the Malaysian Ringgit.
Malaysia Airports’ retail arm Eraman posted revenue of RM735.3 million (US$187.7 million) across KLIA and klia2, up +13.5%. Sales per passenger increased +2.1% to RM12.57 (US$3.2). MAHB noted that Eraman commands about 45.9% of total sales per passenger at klia2.
At Istanbul Sabiha Gökcen Airport, where the concessionaire is Setur Duty Free, duty free spend per passenger fell -6.9% to €8.87. Non-aeronautical revenue slipped -6.3% to €83.7 million.
Passenger traffic in the group’s network of airports grew +7.8% to 127.9 million.
Group revenue was up +11.5% to RM4,652.3 million (US$1,187 million), while EBITDA increased +11.8% to RM1,910.9 million (US$487.7 million).
MAHB noted that it had entered into a strategic tie-up with the Malaysia Tourism Promotion Board (Tourism Malaysia) as the country prepares for the Visit Malaysia Year 2020 campaign. On 8 November 2017, the group signed a Memorandum of Understanding with Tourism Malaysia to promote inbound traffic globally, focusing on tourists from India, China and Europe.
“This initiative will yield greater tourism impact as well as a significant milestone for both parties in the development of inbound tourism and in developing our international gateways, especially KLIA,” said MAHB Managing Director Datuk Badlisham Ghazali.
Looking at the remainder of 2018, MAHB said it held the promise of “being another exciting year for the group as it remains committed in delivering high quality services to its stakeholders by embedding a customer-centric culture in airport operations. This is in line with the Total Airport Experience initiative under Runway to Success 2020, in enhancing the airport experience across all touchpoints for its stakeholders.”
Original Source: moodiedavittreport
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