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Malaysia Airports’ profits lower due to accounting change

Malaysia Airports Holdings Bhd (MAHB) reported a net profit of MYR61.8 million for the three months ended 30-Sep-2010, down 25.9% year-on-year.

Profit before tax fell 17.9%, mainly due to the adoption of the FRS 139 accounting standard, resulting in a higher share of losses in its associate company, Sabiha Gokcen International Airport Ltd.

Revenue rose 18.2% to MYR446.3 million, driven by the group’s airport operations, reflecting a stronger recovery in air travel demand. Passenger movements for the current quarter were 6.6% higher than the corresponding period last year, in which international and domestic passenger movements rose 13.5% and 0.7%, respectively. Growth in the retail business as well as higher rental revenue derived from additional commercial spaces also contributed to the revenue increase.

No dividend was declared for the quarter. MAHB CFO Faizal Manso stated: “Hopefully, the fourth quarter [results] would be good.”

MAHB’s shares rose 1.7% on Friday.

Selected airports daily share price movements (% change): 29-Oct-2010