Net profits recorded at both Malaysia and Türkiye operations, the first time since pandemic
SEPANG – The Malaysia Airports Holdings Berhad Group (Malaysia Airports or the Group) today reported its financial results for the quarter ended 31 March 2023 (1Q23), reporting revenue of RM1.0 billion, 81.2% higher compared to the same period last year (1Q22). The Group’s Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA) rose to RM441.9 million from RM186.9 million a year ago, driven by international passenger traffic that more than tripled compared to 1Q22 following the reopening of Malaysian borders in April 2022. As of the end of 1Q23, group passenger traffic has recovered by 79.9% against pre-pandemic levels.
The Group’s Malaysia operations saw 18.7 million passenger movements in 1Q23, a two-fold increase from 1Q22, with a 73.7% overall recovery against pre-pandemic levels. Meanwhile, despite the devastating earthquake in Southeast Türkiye in February, its Türkiye operations saw an increase of 25.4% in passenger movements from 1Q22 to 8.1 million, mainly driven by a 34.4% growth in its international passenger movements.
The Group’s cost moderately increased in tandem with the increase in passenger traffic and corresponding operational requirements. Nevertheless, its core cost per passenger improved to RM16.50 per passenger compared to RM23.20 per passenger in 1Q22, testament to the Group’s relentless pursuit of managing its costs and increasing its efficiency and productivity. As a result, its EBITDA more than doubled to RM441.9 million from RM186.9 million a year ago. Coupled with lower finance costs and improved share of results from its associates and JVs, the Group swung into a net profit position of RM58.2 million compared to a loss of RM104.8 million in 1Q22.
The Group is optimistic of a continued recovery in its passenger numbers as demand for air travel gains momentum. Based on its recovery trajectory and seat filings by airlines at all its 39 airports nationwide, The Group expects to see traffic numbers reaching closer to pre-pandemic levels by the end of the year.
Malaysia Airports’ Managing Director, Dato’ Iskandar MizalMahmood said that together with the ongoing airport modernisation, digitisation and commercial revitalisation across its network of airports, the Group is confident that Malaysia Airports will return to sustained value accretion at both its Malaysian and Turkish operations in the near term.
“After a challenging period of downturn due to the pandemic, the future now looks considerably brighter and we are focused on making a strong comeback. We will inject more rigour to improve our service offerings across our network of airports and increase costs efficiency, as key drivers to propel our airports back up the global rankings.”