Pensword Capital

MALAYSIA Airports Holdings Bhd (MAHB) lifted revenue 12 per cent to RM436.4 million (S$189.3 million) for the first quarter ended March as passenger movements rose about a fifth from a year back.

International passenger numbers improved 31.4 per cent and domestic numbers almost 13 per cent as recession fears eased.

Profit was lower at RM72.6 million versus RM92 million previously. This was due to the adoption of the FRS139 financial reporting standard and high base in Q1 2009 when profit was swelled by a RM52 million government lease reversal and a RM45.8 million backdated user-fee payment.

Stripping out the effect of these items, the airport operator said that it performed better operationally, with pre-tax profit 12 per cent higher year on year at RM140 million.

Basic earnings per share dipped to 6.6 sen from 8.37 sen previously, according to unaudited results.

MAHB expects its business segment - especially retail - to continue to contribute positively after it expanded by a quarter in Q1.

In the aeronautical segment, the passenger service charge contributed 26 per cent more at RM123.7 million, up from RM98.5 million.

However, total revenue per passenger movement was lower, as was aeronautical revenue per passenger movement.

The former slipped 7 per cent to RM31.83 from RM34.26, while the latter fell 13.4 per cent to RM15.25 from RM17.61.

Aircraft movements improved 4 per cent at Kuala Lumpur International Airport's main terminal and 17 per cent at the low-cost carrier terminal (LCCT). Passenger movements rose 22.26 per cent at the main terminal to 4.4 million and 25.5 per cent at the LCCT to 3.5 million. Other airports saw a 17 per cent rise to 5.5 million passengers.

MAHB has unveiled plans to grow its non-aeronautical business, with the emphasis on commercial revenue from its new LCCT. Scheduled to be completed in the first quarter of 2012, it is seen as a 'huge opportunity'.

The completion of upgrading works at the existing LCCT and a retail optimisation plan at the KLIA satellite building are expected to provide a fillip in the meantime.

On the volcanic ash problem that has disrupted air travel in Europe, MAHB said that Malaysian airports have little exposure and the impact on traffic growth is expected to be minimal.