KUALA LUMPUR (May 28): Malaysia Airports Holdings Bhd (MAHB) net profit for the first quarter ended March 31, 2018 (1QFY18) surged to RM444.6 million from RM64.2 million a year earlier, driven mainly by unrealised gain on the fair value of investment in GMR Hyderabad International Airport Limited (GHIAL) amounting to RM258.4 million.

The group’s revenue for the current quarter under review also grew 14% over the corresponding quarter last year to RM1.22 billion, from RM1.09 billion.

Earnings per share was 25.94 sen, versus 3.08 sen prveiously. 

In a filing with Bursa Malaysia, MAHB said airport operations recorded revenue growth of 12.2% to RM1143.1 million, mainly driven by both its aeronautical and non-aeronautical segment.

“Included in the airport operation’s revenue in the current quarter was construction revenue of RM25.8 million from Turkey operations. 

The construction revenue was recognised in relation to the construction of the boarding hall expansion of Istanbul Sabiha Gokcen International Airport (ISGIA),” the filing added.

Underpinned by strong passenger growth, the aeronautical segment grew 11.7% to RM588.4 million over the same corresponding quarter last year. 

Malaysia operations recorded passenger growth of 3.4% (international: 10.2%, domestic: -3.4% growth) to 24.4 million passengers, as compared to the corresponding quarter last year of 23.6 million passengers, it added.

The growth in international passenger traffic was contributed by four regional international airports performing exceptionally well in March 2018, MAHB added. 

Meanwhile, passenger traffic for its Turkey operations increased by 18.2% to 7.8 million passengers, as compared to the corresponding quarter last year of 6.6 million passengers. Both international and domestic traffic increased by 19.0% and 17.8% respectively.

The non-aeronautical segment also recorded almost equally strong revenue growth of 7.6% to RM528.9 million, driven by stronger sales registered by the concessionaires and retailers.

However, non-airport operations has declined slightly by 2.8% or RM2.1 million, due to lower revenue from agriculture business resulting from a decrease in fresh fruit bunches (FFB) price and lower project and repair maintenance.

At midday break today, MAHB was flat at RM8.30 with 309,600 shares done.