MAHB Q2 profit soars 614pc on higher passenger traffic
Airport operator’s revenue rises to RM1.1b from RM997.6m a year ago
MALAYSIA Airports Holdings Bhd (MAHB) recorded a 614 per cent jump in net profit to RM66.93 million in the second quarter, up from RM9.38 million a year earlier, thanks to earnings gained on increased passenger growth.
Revenue increased to RM1.1 billion in the second quarter ended May 31 from RM997.6 million a year ago.
With the positive earnings growth, MAHB has declared a dividend of five sen a share.
“Passenger traffic for airports operated by MAHB in Malaysia for the current quarter increased 13.8 per cent to 23.9 million passengers, compared with the same quarter last year of 21 million passengers,” , it told Bursa Malaysia yesterday.
“The passenger traffic for Istanbul Sabiha Gokcen International Airport (ISGIA) increased four per cent to 7.8 million passengers, compared with 7.5 million passengers in the same period last year.”
For the cumulative six-month period this year, MAHB said net profit climbed to RM128.94 million from RM26.39 million a year earlier while revenue rose to RM2.19 billion from RM2.02 billion.
Maybank Investment Bank said MAHB’s results looked solid as passenger traffic growth climbed 11.6 per cent year-on-year and the higher yielding international passenger mix increased two percentage points to 45.8 per cent.
“Our prime focus is on the management’s ability to reduce unit operating cost. Our recent visit to the airport affirms that the Kuala Lumpur International Airport is in dire need for an increase in its staff headcount.
“They were series of long queues everywhere (security checks and immigration) and it has come to a point where it is negatively impacting on the user experience,” said the research house.
MAHB needed to invest significantly to boost its operational capability to enable it to cater to the robust traffic growth it had been enjoying, said Maybank IB in a note last week.
The research firm downgraded the airline operator to “hold” as the share price has exceeded its discounted cash flow-based target price of RM8.05.
The Malaysian operations had 50.2 per cent international passenger split in the second quarter this year, a 1.9 percentage points growth year-on-year.