Malaysia Airports Holdings Berhad (AIRPORT) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 profit after tax reached RM606.2 million, up over 100% year-over-year and 19% from 2019, with revenue at RM4.26 billion and EBITDA at RM2.07 billion, driven by strong passenger growth and commercial performance.

• Passenger movements totaled 101.2 million, up 13.9% year-over-year and at 96.3% of 2019 levels, with Malaysia's international seat capacity at 90.5% and Turkey's at 171% of 2019.

• Number of scheduled airlines in Malaysia exceeded pre-pandemic levels, reaching 74, with further growth and new routes expected.

• Commercial reset and retail initiatives led to higher occupancy (84%) and Eraman's spend per ticket at RM325, surpassing pre-pandemic levels.

• Strategic airport expansions in Penang and Kota Kinabalu and enhanced airline connectivity position for future growth.

Financial highlights

• Revenue increased 20.3% year-over-year to RM4,262.4 million, mainly from aeronautical and commercial rental segments.

• EBITDA rose 30.9% to RM2,066.0 million; net profit margin improved to 18.2%; EBITDA margin at 48.5%.

• Operating costs rose 3% due to higher maintenance and staff costs, partially offset by a RM50 million recovery in doubtful debts.

• Cash and money market investments stood at RM2,493.6 million, with borrowings at RM4,596.7 million and gross gearing at 0.56 times.

• All associates, JVs, and subsidiaries remained profitable, a marked improvement from 2023.

Outlook and guidance

• Passenger traffic is expected to approach pre-pandemic levels, supported by relaxed visa requirements, new airline routes, and Visit Malaysia 2026.

• Ongoing airport expansions in Penang and Kota Kinabalu to double terminal capacities, funded by government mechanisms.

• Commercial occupancy targeted at 86% by year-end; over 30 new outlets to open in FY24.

• Malaysia is forecasted to achieve 95.4–97.6 million passengers for 2024, with Asia-Pacific air travel projected to grow 13% year-over-year.

• Strategic focus remains on infrastructure upgrades, operational efficiency, and enhanced passenger services.