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Malaysia Airports Q1 net profit more than doubled on better sales, margins

Analysis

KUALA LUMPUR (XFNews) - Malaysia Airports Holdings Bhd (MAHB) said

its first quarter to March 2005 net profit more than doubled to 49.42 mln

rgt which was attributable to higher sales and better overall profit margins

for the various business segments.

Pre-tax profit also rose 2.35 times to 72.69 mln rgt on the back of a 7.8 pct higher revenue of 297.63 mln.

MAHB said that sales were higher in the first quarter year-on-year due to the higher aeronautical revenues from the airport services business segment.

It also said that during the first quarter of 2004, it had accrued an amount of 24.8 mln rgt being lease rental charges payable to the government in relation to Kuala Lumpur International Airport.

"However, the above accruals were reversed during the fourth quarter of fiscal year to December 2004 as the government had agreed to a temporary suspension of the lease rental charges until a new scheme is formulated under ongoing negotiations between the company and the government, is formalised," it added.

MAHB said it did not make any accruals for the above lease rental charges for the first quarter to March 2005.

Looking ahead, the company said its airport services business segment is expected to continue to contribute significantly to the consolidated revenue of the company for the fiscal year to December 2005.

"Therefore, the revenue streams of the group will be highly dependant on passenger movements at airports operated by the group," it added.

MAHB said it expects a growth in the passenger movements for the current fiscal year.
It added that it is currently in discussions with the government on the proposed corporate and financial restructuring of the group in order to address several financial issues.

MAHB said that its fiscal year to December 2005 is expected to be impacted by the outcome of its proposed corporate and financial restructuring plan.

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