MAHB’s net profit falls 84.4% in Q3
> Overseas operations losses dent company’s earnings even as revenue sees marginal growth
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.