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Malaysia Airports Managing Director Dato’ Seri Bashir Ahmad: bullish about commercial activities in 2009 |
MALAYSIA. Strong growth in non-aeronautical revenue helped Malaysia Airports (MAHB) post a solid set of financial results for the year ended 31 December 2008, compared to a year earlier.
Within the company’s Airport Operations division, non-aeronautical revenue surged by +16.58% to RM626.66 million (US$169 million), compared to 2007. MAHB’s retail and food & beverage business, principally through its in-house operation Eraman Malaysia, grew revenues by +5.5% to RM304.9 million (US$82 million).
The company said: “The significant improvement in the non-aeronautical business was contributed mainly from retail, food & beverage and rental services. [The business] benefited from the higher rental of panel/light boxes for advertising and royalties as a result of the increase in passenger volume and the appointment of new tenants at Penang, Kota Kinabalu, Kuching and Miri airports.”
The company recorded pre-tax profits of RM432.44 million (US$116.7 million), up by +6.8%, while revenues grew by +9.65% to RM1.51 billion (US$407 million). EBITDA increased by +7.18% to RM587.37 million (US$158.5 million).
Total passenger volume at all airports grew by +5.01% to reach 47.45 million for the 12 months ended 31 December 2008. This was supported by +5.12% growth in domestic passenger volume to 26.4 million and +4.87% growth in international passenger volume to 21.06 million.
Malaysia Airports revenue breakdown 2008
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Retail posted solid growth, while non-aeronautical revenues grew their share of the business at Malaysia Airports in 2008 compared to 2007 | |
Managing Director Dato’ Seri Bashir Ahmad Abdul Majid said: “Our total revenue growth of +9.65% was almost double that of overall passenger growth of +5.01% resulting in a profit before tax improvement of +6.8%. [This was] despite a +6.95% increase in operating expenses which was principally due to higher staff-related costs and repair and maintenance.
“[In the airport division] non-aeronautical revenue stood at a higher proportion against aeronautical revenue at 56.88% and 43.12% respectively in the financial year 2008, compared to 54.11% and 45.89% in the previous year.”
He added: “For the financial year ending 31 December 2009, we expect passenger traffic and aircraft movement at our airports to slow down in tandem with the global economic slowdown. However, we expect our non-aeronautical revenue from commercial activities to improve as a result of increased commercial space and retail optimisation initiatives at the airports.”
Among the key commercial initiatives just completed or in progress are:
Kuala Lumpur International Airport
Satellite Building: Phase 2 of 4 completed in January 2009, with phases 3 and 4 due for completion in May and July respectively. In total this will add 4,000sq m of retail space.
Contact Pier: 3,000sq m of retail to be completed in two phases; phase 1 completed in December, with phase 2 (with a dedicated area for fashion & accessories) to be finished by April.
Low-Cost Terminal: International Arrivals area completed in December; work in Departures due for completion in March; Public car park and concourse under construction and due for completion by April.
Penang Airport
Negotiation of new advertising concession; due for completion in March.
Kota Kinabalu Airport
New terminal opened in August with 15 new retail outlets, five F&B units and eight other services. Existing terminal under renovation and due for completion in September 2009.
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