KUALA LUMPUR (Aug 24): Malaysia Airports Holdings Bhd (MAHB), which recorded a net profit of RM102.53 million in 2QFY2023, marking its third consecutive quarterly earnings, is hopeful that passenger movements will recover to pre-pandemic levels by the end of the year.

For 2QFY2023, it posted a net profit of RM102.53 million against a net loss of RM58.15 million a year ago, as revenue rose 78.61% year-on-year to RM1.23 billion, from RM689.76 million previously, thanks to increased passenger traffic.

During the quarter under review, the group's cost increased due to higher user fees payable under the Operating Agreement and higher revenue share payable under Istanbul Sabiha Gokcen International Airport's concession, whilst other operational cost moderately increased to meet operational requirements with the increase in passenger traffic.

Notably, it saw share of profits from associates at RM2.69 million versus losses of RM40,000 a year ago, while share from joint ventures was at a RM4.08 million loss versus a RM3.5 million profit a year ago.

The improved quarterly results also led to MAHB delivering a net profit of RM160.72 million for the cumulative six months ended June 30, 2023 (6MFY2023) versus a net loss of RM162.91 million in the previous Jan-June period.

Its 6MFY2023 revenue also jumped 79.79% to RM2.27 billion, from RM1.26 billion previously.

As of the end of 1H2023, the group’s passenger traffic recovered by 82.4% against pre-pandemic levels, underpinned by the resumption of airline services and connectivity, reopening of Chinese borders and an increase in the quota for Haj pilgrims this year.

MAHB, which operates 39 airports in the country, saw 38.9 million passenger movements in its Malaysia operation for the first half of 2023 (1H2023), an increase of 91.9% from 1H2022, and a 76.1% recovery against pre-pandemic levels.

Meanwhile, its Turkish operations saw an increase of 24.4% y-o-y in passenger movements to 17.2 million in 1H2023, surpassing the 17 million passenger movements recorded in the same period in 2019.

Its core cost per passenger improved to RM16.50 per passenger compared with RM20.70 per passenger in 1H2022.

As a result, its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to RM1 billion in 1H2023, from RM471.7 million a year ago.

In a statement, MAHB’s managing director Datuk Iskandar Mizal Mahmood the various initiatives that the group has embarked on in the past couple of years have begun to come to fruition.

“We are seeing better cost efficiency across our operations, improved contribution of commercial revenue, and gaining momentum in earnings growth in both Malaysia and Türkiye,” Iskandar said.

Meanwhile, he said that several operational improvements and digital solutions to achieve enhanced service delivery have been rolled out, including the self-service check-in and bag drop facility, EZBagz, and an online feedback management platform, STARdesk.

“All these and more are being done to not only improve our service offerings for our passengers and stakeholders but will also be the key drivers to propel our airports back to the top-tier global rankings,” he added.

MAHB’s share price closed up three sen or 0.43% at RM6.93, giving the group a market capitalisation of RM11.56 billion.

Over the past year, the stock has gained 14%.