Malaysia Airports Holdings Berhad (AIRPORT) Q2 2024 earnings summary

Executive summary

• Passenger traffic reached 65.0 million in 1H24, up 15.8% year-over-year and at 95.4% of 2019 levels.

• Revenue for 1H24 rose 20.5% to RM2.73 billion, with net profit more than doubling to RM395.8 million.

• EBITDA increased 28.9% year-over-year to RM1.32 billion, with improved margins and profitability in both Malaysia and Türkiye operations.

• Cash balance stood at RM2.0 billion after significant payments, and the group remains well-positioned for future growth.

• Non-aeronautical and non-airport operations also saw growth, with notable increases in hotel and agriculture segments.

Financial highlights

• Group revenue: RM2,730.3 million (+20.5% YoY); Malaysia: RM1,760.7 million (+20.4% YoY); Türkiye: RM969.6 million (+20.6% YoY).

• Group EBITDA: RM1,321.4 million (+28.9% YoY); Malaysia: RM616.3 million (+32.3% YoY); Türkiye: RM705.1 million (+26.0% YoY).

• Net profit: RM395.8 million (>100% YoY); Malaysia: RM280.5 million (+84.4% YoY); Türkiye: RM115.3 million (>100% YoY).

• 2Q 2024 net profit attributable to owners was RM205.8 million, up from RM102.5 million in 2Q 2023.

• Passenger growth driven by international traffic (+28.9% YoY), with domestic up 4.1%.

Outlook and guidance

• Passenger recovery expected to continue, supported by visa waivers, eGate access for 63 nationalities, and new airline routes.

• At least four new airlines and the return of British Airways anticipated by year-end.

• Expansion of Penang (PEN) terminal underway, with further airport developments planned.

• Commercial occupancy targeted to reach 86% by year-end, with over 30 new outlets planned.

• New Aviation Service Charges and a Loss Capitalisation Mechanism are expected to improve cost recovery.