The Star Malaysia - StarBiz
MAHB incurs a net loss of Rm685mil in Q4
KUALA LUMPUR: Hit by the ongoing revenue slump, Malaysia Airports Holdings Bhd (MAHB) recorded a net loss of Rm685.02mil in the fourth quarter ended Dec 31, 2020, versus a net profit of Rm29.51mil a year ago.
The airports operator said revenue in the quarter dove 80.4% to Rm263.64mil from Rm1.34bil in the fourth quarter of 2019, as the Covid-19 lockdowns continued to disrupt air travel operations.
In the same quarter, the group was also hit by a Rm500.4mil impairment in Istanbul Sabiha Gökçen International Airport’s (ISG) concession rights.
However, core operational expenses decreased 38% compared to the previous corresponding quarter due to cost containment initiatives during the period.
MAHB said Malaysia and Qatar operations recorded pre-tax losses of Rm448.1mil and RM200,000 respectively as compared to pre-tax profits in the year-ago quarter.
The higher losses were cushioned by the recognition of deferred tax asset arising from Investment Tax Allowance (ITA) amounting to Rm246.5mil and from the current period business losses.
The group’s share of results from associated resulted in loss of Rm8.4mil, which compares to the profit of Rm8.6mil in the previous corresponding quarter.
Share of results of joint ventures in the current quarter recorded profits amounting to Rm5mil, slightly lower as compared to the profit of Rm5.6mil in the previous comparative quarter.
For the entire 2020 financial year, MAHB recorded a net loss of Rm1.12bil as compared to a net profit of Rm53.04mil in the year before.
Total revenue in FY20 came to Rm1.87bil, 64.2% lower than Rm5.21bil in the previous year, in tandem with a 69.5% contraction in passenger movement due to the Covid-19 outbreak.
Moving forward, MAHB said the Covid-19 vaccines breakthrough could be a turning point in air travel recovery while the economy picks up.