MAHB Q2 profit soars 614pc on higher pas­sen­ger traf­fic

Air­port op­er­a­tor’s rev­enue rises to RM1.1b from RM997.6m a year ago

New Straits Times - - Business - ZA­RINA ZAKARIAH KUALA LUMPUR zari­naz@me­di­aprima.com.my

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.

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