Wednesday, February 16, 2011

MAHB 4Q net profit down 29% to RM100m on higher losses in associate

KUALA LUMPUR: Malaysia Airports Holding Bhd reported its net profit fell 29% to RM100.04 million for the fourth quarter ended Dec 31, 2010 from RM140.97 million a year ago.

MAHB said on Wednesday, Feb 16 the decline was mainly due to the adoption of FRS 139 resulting in the higher share of losses in an associate company.

However, the concession payable by the associate company was recognised at fair value and subsequently at amortised cost. Gains and losses arising from the changes in the fair value were recognised in the income statement.

'In addition, the figure for the corresponding financial year in the preceding year had included a reversal of lease rental payable to the government totaling RM52.0 million and backdated user fee in respect of financial year 2008 paid to the government of RM45.8 million following the signing of the Operating Agreements.

'Further, there were also certain other one-off transactions pursuant to the signing of the operating agreements and share sales agreements for the disposal of Sepang International Circuit Sdn Bhd and NECC Sdn Bhd,' it said.

MAHB however said after taking into consideration the said transactions, the group had performed better operationally as reflected by the higher passenger and revenue numbers

Its 4Q revenue rose to RM494.37 million from RM476.84 million a year ago, while earnings per share were 9.15 sen. Net assets per share was RM2.99.

MAHB said the improved revenue in the current quarter was mainly attributed to stronger results from the group's airport operations, driven by strong recovery in air travel demand.

For the financial year ended Dec 31, MAHB net profit fell 22.24% to RM293.89 million from RM377.92 million. Revenue rose to RM1.81 billion from RM1.637 billion a year ago.

On its prospects, MAHB said the group benefited from the economic growth in Malaysia, the ASEAN region and other countries within the emerging markets.

The expected future GDP growth as well as increases in tourism and consumer spending in these markets would provide meaningful support to the group's operational and growth objectives, it said.

MAHB said the airport operations segment was expected to continue contributing positively to its consolidated revenue in 2011.

The aeronautical revenue stream would be highly dependent on the passenger movements at all airports operated by the group.

'At this juncture, MAHB is optimistic that the passenger traffic performance at the airport operated by the Group will be positive in 2011.

'The conventional carriers' robust performance would likely continue in 2011 and is again expected to provide a boost to MAHB's aeronautical revenue,' it said.

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