Malta International Airport plc - Interim Results

Thursday, July 30th, 2015

On 29 July, Malta International Airport plc published its half-year financial statements covering the six months ended 30 June 2015.

Performance Overview

During the period under review, MIA registered a 6.5% increase in revenue to a record €29.9 million on the back of growth in both the ‘Airport’ segment as well as the ‘Retail and Property’ segment. The turnover from the ‘Airport’ segment increased by 8.2% to €20.59 million reflecting the 6.9% increase in passenger movements during the first six months of 2015 to 1,987,497 passengers. The growth in passenger numbers are due to a 3.7% rise in seat capacity combined with a 2.3 percentage point increase in the seat load factor to 77.9%. Similarly, the revenue from the ‘Retail and Property’ segment grew by 11.5% to €6.7 million. As a result, the ‘Airport’ segment contributed 68.9% of the Group’s total revenues while the ‘Retail and Property’ segment accounted for 30.5%.

On the expenditure side, MIA reported a 4.2% drop in staff costs following the reduction in the number of employees through an early retirement scheme offered in the latter months of 2014. On the other hand, other operating costs increased by 8.1% to €10.95 million largely reflecting the new contracts for the upkeep of the Air Terminal, additional administrative costs and new marketing initiatives promoting Malta.

As a result, MIA’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 8.3% to €15.2 million. The EBITDA margin improved to 50.8% from 50% in the first half of 2014.

The depreciation charge increased by 8.9% to €3.2 million reflecting the additional investment undertaken to expand the Air Terminal. Meanwhile, net finance costs dropped by 12.2% to €0.69 million mainly reflecting the renegotiation of some of the existing loans as well as further loan repayments amounting to €2.5 million.

Overall, during the first six months of 2015, MIA reported a pre-tax profit of €11.4 million representing a 9.6% increase over the previous comparable figure. After accounting for a tax charge of €4.1 million, the Group’s net profit for the period under review amounted to €7.29 million representing a 9.8% increase over the profit registered during the previous comparable six months.

The Statement of Financial position as at 30 June 2015 shows a 3.3% drop in total assets to €160.3 million compared to the figures as at 31 December 2014 mainly reflecting the 21.9% reduction in cash and short term deposits to €23.99 million as the Group utilised part of its cash balances to settle the final dividend declared with respect to the previous financial year as well as financing investments in property, plant and equipment as well as repaying bank loans. Similarly, total liabilities dropped by 1.9% during the first six months of 2015 to €90.28 million following an 11.2% drop in trade and other payables to €18.88 million and a 5.4% reduction in total borrowings to €74.1 million. Overall, the Group’s equity base contracted by 4.9% to just over €70 million as the final dividend paid out in respect of the previous financial year offset the profit registered during the period under review.

Dividend  

For the eight consecutive year, the Directors declared an unchanged gross interim dividend of €0.0462 (net: €0.03) per share in spite of the increased profitability over the years. In fact, the pay-out ratio dropped to 55.7% in June 2015 from 61.1% last year. Shareholders as at the close of trading on Monday 10 August will be entitled to this dividend which will be paid by not later than Friday 4 September 2015.

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Malta International Airport plc – Interim report for the six months ended 30 June 2015.

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