Malaysia Airports Holdings Bhd (MAHB), operator of 38 airports in Malaysia, including Kuala Lumpur International Airport (KLIA), reported a 6.5% rise in total revenues in the three months ended…
Malaysia Airports Holdings Bhd (MAHB), operator of 38 airports in Malaysia, including Kuala Lumpur International Airport (KLIA), reported a 6.5% rise in total revenues in the three months ended 30-Jun-06, but operating and net profit margins both dipped as staff costs surged 25% year-on-year (associated with the launch of the new LCC terminal). MAHB`s airport services, retail and hotel businesses all reported higher revenues in the period, but several of its business units registered lower profitability.
The group expects the airport services division (which accounts for 63% of total revenue) to continue to contribute significantly to overall revenue, thus making MAHB highly dependent on passenger movements.
But demand is difficult to forecast following the domestic rationalisation policy introduced by the Malaysian Government in Aug-06, and MAHB is vague on the traffic outlook, stating only it `expects to register growth`in passengers in the current financial year, according to analysis by the Centre for Asia Pacific Aviation.
Centre for Asia Pacific Aviation notes that while MAHB awaits the outcome of domestic rationalisation, its own (long overdue) corporate and financial restructuring should now progress.
MAHB confirmed it is in discussions with the Malaysian Government over its restructuring plans, and stated it expects its financial performance would be affected by the outcome of negotiations – indicating MAHB is confident progress is imminent.
KLIA meanwhile faces renewed competitive pressure in the form of the New Bangkok International Airport, which is scheduled to open in under a month, stated Peter Harbison, the Centre`s Executive Chairman.
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