MAHB’s net profit falls 84.4% in Q3

> Over­seas op­er­a­tions losses dent com­pany’s earn­ings even as rev­enue sees mar­ginal growth

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Malaysia Air­ports Hold­ings Bhd’s (MAHB) net profit fell 84.4% to RM10.68 mil­lion for the third quar­ter ended Sept 30, 2016 com­pared with RM68.5 mil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, dragged down by higher losses be­fore tax­a­tion from its over­seas op­er­a­tions.

Rev­enue for the quar­ter un­der re­view, how­ever, was up by 5.7% from RM1.02 bil­lion to RM1.08 bil­lion.

In a fil­ing with the stock ex­change, MAHB said Turkey’s Is­tan­bul Sabiha Gok­cen and LGM Haval­i­mani Islet­meleri Ti­caret ve Tur­izm reg­is­tered an 82.9% de­crease in profit be­fore tax prior to tak­ing into ac­count the loss of RM49.5 mil­lion recog­nised pri­mar­ily due to the amor­ti­sa­tion of fair value for the con­ces­sion rights ow­ing to the fair val­u­a­tion ex­er­cise on the ac­qui­si­tion of ISG and LGM.

Mov­ing for­ward, MAHB is of the view that pas­sen­ger traf­fic for Malaysia op­er­a­tions for the fourth quar­ter is likely to out­per­form the rest of the year due to im­proved load fac­tors and in­crease air­line seat ca­pac­ity.

Mean­while, for over­seas op­er­a­tions, it is an­tic­i­pated that near term growth will be pre­dom­i­nantly do­mes­tic driven, as sen­ti­ment con­tin­ues to re­cover.

With the award of a three-year ex­ten­sion worth RM180 mil­lion for the fa­cil­ity man­age­ment ser­vices at the Ha­mad In­ter­na­tional Air­port in Doha, Qatar, MAHB said it bodes well for the group’s over­seas op­por­tu­ni­ties.

For nine months of the year, MAHB saw its net profit de­cline 54.1% from RM80.74 mil­lion to RM37.07 mil­lion on the back of a 9.1% rise in rev­enue from RM2.83 bil­lion to RM3.09 bil­lion.

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