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Kuala Lumpur, Kuala Lumpur, Malaysia

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Malaysia Airports Focuses On Improving Service Levels And Strengthening Revenue Streams In 2019

Sepang - Malaysia Airports Holdings Berhad (the Group or Malaysia Airports) held its 20th Annual General Meeting (AGM) today at Sama-Sama Hotel KLIA. In opening the meeting, the Chairman of Malaysia Airports Tan Sri Datuk Zainun Ali attributed the Group’s strong performance in FY2018 to the value creation process developed, not only during the year under review but also throughout the preceding years.  Malaysia Airports also iterated the Group’s focus areas in 2019 aimed at improving service levels and strengthening revenue streams which will be achieved through five strategic themes i.e. Moving Towards Becoming a Best-in-Class Hub; Delivering World-Class Service Levels; Strengthening Non-Aeronautical Business; Unlocking Potential through Aeropolis; and Expanding and Diversifying through International Business.

During the AGM, the Board of Directors tabled the financial results for FY2018, which saw Malaysia Airports achieving record revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) of RM4,851.7 million and RM2,383.5 million respectively. Basic earnings per share stood at 40.37 sen for FY2018 in comparison to 10.98 sen for the preceding year.

In improving service levels, the airport operator group is looking to undertake major asset replacement exercises for its two ageing assets – the baggage handling system (BHS) and Aerotrains at the KL International Airport (IATA Code: KUL). It has also embarked on the capacity expansion planning at KUL’s Main terminal.

Other key elements include efforts undertaken to ensure that it meets the targets set under the Malaysian Aviation Commission’s (MAVCOM) Quality of Service (QoS) framework and the ongoing host culture transformation exercise so that it will live up to its objective of creating happy guests by becoming caring hosts. Initiatives to improve service levels will be implemented in tandem with the Airports 4.0 initiative which will enhance operational efficiency and guest experience through a digitalised airport environment.

In improving revenue streams, Malaysia Airports will also be forging ahead in implementing its Commercial Reset strategy aimed at facilitating the growth of retail partners and optimising revenue from rental yield for the Group. On top of capitalising on KUL’s substantial land bank to develop KLIA Aeropolis, Malaysia Airports aims to move further forward in its Subang Airport Regeneration initiative which will transform Subang into a vibrant city airport that serves as a hub for business aviation together with a comprehensive aerospace ecosystem. It will also leverage on the inherent strengths of its overseas asset, the Istanbul Sabiha Gokcen International Airport (IATA Code: SAW) in Turkey, which is currently ranked as the 12th busiest airport in Europe. In 2018, SAW recorded very encouraging growth of 8.8% rising to 34.1 million passenger traffic movements.

Expressing his optimism for the future outlook of the Group, Group Chief Executive Officer Raja Azmi said that the approval for the extension of the Operating Agreements to 2069 signifies the confidence and trust that the government has in Malaysia Airports. “We are committed not only to deliver but to excel in fulfilling our responsibilities to the Government, partner airlines and travelling passengers at large. We will strengthen Malaysia’s position as a strong hub within the region through various plans and initiatives. We are also looking forward to the proposed implementation of the Regulatory Asset Based framework by MAVCOM as it will enable us to obtain fair returns on any capital investments that we make to improve airport facilities and infrastructure,” he added.

Tan Sri Datuk Zainun Ali concluded the AGM by extending the appreciation of the Board and Management of the Group to all shareholders, customers, airline partners, government and regulatory agencies, retailers, joint venture partners, vendors and suppliers for their enduring support towards Malaysia Airports.

During the AGM, as part of the Group’s commitment to enhance shareholder value, the Board proposed final dividend of 9.0 sen per ordinary share amounting to RM149.3million which was approved by shareholders at the AGM. Together with the interim dividend of 5.0 sen per ordinary share paid in September 2018, the total dividend of 14.0 sen per share translates to a payout of 52% of adjusted Profit After Tax (PAT). The shareholders had also approved all other resolutions tabled during the AGM.

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