Malta International Airport plc - Full-Year Results

Wednesday, March 5th, 2014

On 5 March, Malta International Airport plc published its financial statements for the year ended 31 December 2013.

Performance Overview

During 2013, turnover grew by 11.3% to €58.79 million with both the ‘Airport Segment’ and the ‘Retail and Property Segment’ contributing to this increase. In fact, revenue from the airport segment grew by 7.8% to €41.3 million reflecting the record passenger numbers of over 4 million during 2013. Similarly, the income from the ‘Retail and Property Segment’ jumped 21% to €17.08 million on the back of higher rental income from SkyParks Business Centre (as the property approaches full occupancy) as well as an increase in retail and food & beverage sales given the record passenger numbers.

MIA registered a 7% increase in operational expenses (excluding depreciation) to €28.9 million largely due to the 17.9% increase in marketing costs to €3.3 million as well as a €0.7 million rise in the ground rent lease charge. The announcement also noted that MIA incurred marginal increases in other operational costs such as staff costs, utility costs and PRM charges.

As a result, MIA’s earnings before interest, tax, depreciation and amortisation grew by 15.9% to €29.89 million with the EBITDA margin also improving to a record 50.8%. After accounting for depreciation of €5.58 million (increase of 9.8% from 2012 due to SkyParks), MIA reported an operating profit of €24.3 million representing a 17.4% increase over the previous year’s comparable figure.

The income statement for 2013 also includes a €0.21 million gain related to the release of deferred income from the sale of the terminal building compared to €0.29 million in the previous financial year. MIA was also impacted by a 19.9% increase in net finance costs to €1.8 million largely due to the SkyParks Business Centre which became fully operational in 2013.

Overall, MIA reported a 13.3% increase in pre-tax profits to €22.67 million. After accounting for a tax charge of €8.1 million (2012: €7 million), MIA’s net profit amounted to €14.59 million representing a 17.1% increase over the previous year’s figure. This translates into an earnings per share of €0.1078 (2012: €0.0921).

The Statement of Financial Position shows a 5.1% increase in total assets of €162.1 million largely due to the €11.7 million increase in cash and equivalents to €29.2 million which offset the 29% drop in trade receivables to €11.9 million. Net debt dropped by 30% to €32.7 million on the back of the increase in cash balances as well as the repayment of €2.3 million in bank loans. Shareholders’ funds grew by 7.4% to €66.98 million in 2013 largely reflecting the profit registered during the year under review. Comparing the debt figure with total equity, MIA’s gearing ratio is at 48.9% compared to 74.9% in 2012.

Furthermore, comparing the net profit with equity leads to a record return on equity of 22.6% compared to the 2012 figure of 20.5%. Similarly, return on assets (pre-tax profit divided by average assets) increased by 1.4 percentage points to 14.33% (the highest since 2003).

Dividend 

The Directors recommended a final gross dividend of €0.06923 representing a 12.5% increase over last year’s final dividend. Shareholders as at the close of trading on Tuesday 15 April will be eligible to receive this dividend which is expected to be paid out by no later than Monday 9 June subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on Thursday 22 May.

Combined with the interim gross dividend of €0.0462 per share (paid out in September 2013), MIA’s total gross dividend in respect of the 2013 financial year amounts to €0.1154 (net: €0.075) representing a 7.2% increase over the previous year’s total dividend.

Outlook

The Directors reiterated their passenger growth forecast of a further 2% increase in passenger movements during 2014. The forecast is based on the expectations of two new operators (British Airways and flyNiki) as well as increased frequencies from existing operators. Meanwhile, the top three carriers (Air Malta, Ryanair, Easyjet) are expected to operate with approximately the same seat capacity of 2013. MIA’s forecast is also based on the premise that the new routes introduced in 2013 will continue to grow and the overall seat load factor also improves.

On the ‘Retail and Property’ side, MIA is also forecasting further growth as this segment is also expected to benefit from the projected increase in passenger numbers as well as a further increase in contractual rental income from SkyParks to just over €2 million (2013: €1.3 million).

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Malta International Airport plc – Company Announcement re 2013 Financial Statements & Final Dividend

Malta International Airport plc – Financial Statements for the year ended 31 December 2013.

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