MAHB Q4 earnings fall 16.4% on higher amortisation, depreciation costs

PETALING JAYA: Malaysia Airports Holdings Bhd's (MAHB) net profit declined 16.4% to RM27.86 million for the fourth quarter ended Dec 31, 2017, from RM33.32 million in the previous corresponding quarter attributed to higher total costs.
MAHB told the stock exchange that the significant increase in total cost especially for Malaysia operations was mainly due to an increase in amortisation and depreciation of RM145.5 million arising from the adjustment of rate made in 2016 based on longer operating period from 25 years ending 2034 to an additional 35 years ending 2069.
Revenue for the quarter grew 15.4% to RM1.25 billion, compared with RM1.08 billion in the same period in 2016, mainly contributed by growth in both airport and non-airport operations.
The group has proposed a final dividend of 8 sen per share for the quarter under review.
For the full year, its net profit more than tripled to RM236.5 million against RM70.4 million a year ago, while revenue increased 11.5% to RM4.65 billion, from RM4.17 billion previously.
Year-on-year, MAHB said both international and domestic traffic increased 8.4% and 4.5% respectively.
The non-aeronautical segment also recorded strong revenue growth of 10.4% to RM2.04 billion, while non-aeronautical revenue per pax rose 4.4% to RM16.4 driven by stronger sales registered by the concessionaires and retailers.
Additionally, non-airport operations revenue grew 14.4% over the same period last year to RM297.6 million, mainly contributed by hotel, agriculture and project and repair maintenance business segments.
It noted that airports in Malaysia registered a record of 96.6 million passenger movements, a growth of 8.7% over 2016, surpassing the 90 million mark for the first time. The passenger traffic was mainly driven by the international sector.
On its prospects, MAHB said the air travel demand for domestic sector remained robust based on a high average load of 75.1%, the highest recorded since 2012.
MAHB’s share price rose 27 sen or 3.1% to close at RM8.89 on some 7.61 million shares done.