ANKARA: Malaysia Airports Holdings Bhd (MAHB)’s fourth quarter net profit for financial year ended rose sharply to RM662.88mil from RM36.98mil a year ago.
The increase of more than 1,700% was attributed to a “re-measurement of fair value” of its two investments in Turkey, a filing with Bursa Malaysia showed.
MAHB bought Sabiha Gokcen International Airport (ISG) and LGM Airport Operations Trade and Tourism Inc last year. They became wholly-owned subsidiaries of MAHB on Dec 31, 2014. However, revenue for the quarter dropped to RM711.33mil from RM1.12bil a year ago.
On an annual basis, the “re-measurement” boosted the whole year’s net profit for 2014 by 98%, with the company recording a net profit of RM748.52mil for 2014 compared to RM377.483mil a year ago.
However, its annual revenue slid to RM3.34bil from RM4.1bil a year ago, a drop of more than 18% due to a drop in construction revenue after the completion of KLIA2 project.
Construction revenue dropped by more than half to RM662mil for the year compared to RM1.64bil a year ago.
The group had also recognised a gain on the bargain purchase of RM371.1mil arising from the acquisition of ISG and impairment of goodwill arising from the acquisition of LGM of RM229.4mil,” the company said. The airport operator said falling oil prices and Asean’s open sky policy were expected to boost profitability.