Second consecutive quarter of net profits recorded in both Malaysia and Türkiye operations
SEPANG – The Malaysia Airports Holdings Berhad Group (Malaysia Airports or the Group) today reported its financial results for the quarter ended 30 June 2023 (2Q23) and first half of the year (1H23), reporting 1H23 revenue of RM2.3 billion, 79.8% higher compared to the same period last year (1H22). The Group’s 1H23 Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose to RM1.0 billion from RM471.7 million a year ago, driven by strong traffic recovery. As of the end of 1H23, group passenger traffic recovered by 82.4% against pre-pandemic levels, underpinned by the resumption of airline services and connectivity, reopening of Chinese borders and an increase in the quota for Haj pilgrims this year.
The Group’s Malaysia operations saw 38.9 million passenger movements in 1H23, an increase of 91.9% from 1H22, and a 76.1% recovery against pre-pandemic levels. Meanwhile, its Türkiye operations saw an increase of 24.4% in passenger movements from 1H22 to 17.2 million, surpassing the 17.0 million passenger movements recorded in the same period in 2019.
The Group’s operational 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 RM20.70 per passenger in 1H22, testament to the Group’s relentless pursuit of managing its costs and increasing its efficiency and productivity. As a result, the Group swung to a Profit Before Tax of RM197.2 million versus a Loss Before Tax of RM241.5 million a year ago, and a net profit of RM160.7 million compared to a net loss of RM162.9 million a year ago.
The Group remains encouraged by the buoyant demand for air travel and continued recovery in passenger traffic and is optimistic that passenger movements will trail closer to pre-pandemic levels by the end of the year. Malaysia Airports’ Managing Director, Dato’ Sri Iskandar Mizal Mahmood 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 position in the near term.
He commented, “While we are still on our transformation journey, the various initiatives that the Group has embarked on in the past couple of years have begun to come to fruition. We are seeing better cost efficiency across our operations, improved contribution of commercial revenue, and gaining momentum in earnings growth in both Malaysia and Türkiye. Several operational improvements and digital solutions to achieve enhanced service delivery have been rolled out, including the self-service check-in and bag drop facility, EZBagz, and an online feedback management platform, STARdesk. All these and more are being done to not only improve our service offerings for our passengers and stakeholders but will also be the key drivers to propel our airports back to the top-tier global rankings.”