Malta International Airport plc - Full-Year Results

Thursday, February 25th, 2016

On 24 February, Malta International Airport plc (MIA) published its annual financial statements for the year ended 31 December 2015.

Performance Overview

During the year under review, MIA registered a 4.2% increase in revenue to a record €66.97 million on the back of growth in both the ‘Airport’ segment as well as the ‘Retail and Property’ segment. On the aviation side, revenues grew by 4% to €46.4 million reflecting the record number of passenger movements of 4.61 million. As previously explained, the growth in passengers reflect the combined increase in seat capacity and seat load factor (further information available at This growth in passenger numbers did not only lead to an increase in aviation-related revenues but also led to an increase in retail sales (forming part of the ‘Retail and Property’ segment) across the concessionaires throughout the terminal. Furthermore, the Company reported growth in all other non-aviation revenue streams forming the ‘Retail and Property’ segment which registered a 4.7% increase in revenue to just over €20 million. Similar to last year, the ‘Airport’ segment contributed just below 70% to the Group’s total revenue whilst the ‘Retail and Property’ segment accounted for almost 30% of total revenue.

Operating costs only increased by 2.9% to €31.3 million as the €0.8 million savings in staff costs (a direct result of the early voluntary retirement scheme launched in late 2015) as well as the reduction in utility bills were offset by increases in a number of other cost items especially in the areas of maintenance, cleaning, marketing, legal fees, ground handling and technical services.

Overall, MIA reported a 5.3% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to a record €35.6 million. The EBITDA margin also climbed to a new all-time high of 53.2%.

The depreciation charge increased by 1.6% to €6.6 million largely reflecting the on-going investment undertaken in the airport’s infrastructure as well as plant and equipment.

On the other hand, net finance costs dropped by 11.6% to €1.29 million largely reflecting the declining interest costs as MIA repaid a further €2.5 million in bank loans. The 2015 financial statements were further boosted by a one-off gain on the disposal of the Company’s 10% stake in Valletta Cruise Port plc [VCP] (effective 2 November 2015) amounting to €1.86 million (this figure has been included in finance income in the financial statements of MIA).

Overall, MIA reported a record pre-tax profit of €29.78 million representing a 14.3% rise over the previous year’s comparable figure. After accounting for a tax charge of €10.5 million (2014: €9.2 million), MIA’s net profit for the year under review amounted to €19.27 million representing a 14.5% increase over the previous year’s figure and a new all-time high.

The Statement of Financial Position shows a 3.8% increase in total assets to €171.9 million largely due to the 1.1% increase in property, plant and equipment to €97.5 million and the 29% increase in cash balances to €39.64 million which offset the €1.1 million reduction in ‘available-for-sale financial assets (representing the carrying value of the shareholding in VCP which has now been disposed of) and the 17.4% decline in trade and other receivables to €11.8 million. Similarly, total liabilities increased by 2.3% to €94.2 million as the 4.1% reduction in bank borrowings to €57.1 million (it is important to highlight that this includes a payment of €23.3 million due on 19 April 2016 which the Company is currently negotiating) was offset by a 20.2% increase in trade payables to €25.6 million. Nonetheless, the higher increase in assets led to a 5.5% increase in the Group’s total equity to €77.7 million which translates into a net asset value per share of €0.574 (2014: €0.544).  The post-tax return on equity for 2015 reached 25.5% compared to 23.9% in 2014. Similarly, the return on assets increased by 175 basis points to 17.7%.


The Directors recommended a final gross dividend of €0.1077 per share representing a 12.5% decrease compared to the final gross dividend paid out in respect of the previous financial year. Shareholders as at the close of trading on Wednesday 30 March will be eligible to receive this dividend by not later than 19 May 2016 subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 4 May 2016.

Combining the interim dividend of €0.0462 (paid out in September 2015) with the above mentioned final gross dividend, the total dividend declared in respect of the 2015 financial year amounts to €0.1539 per share (net: €0.10) compared to the record dividend distribution of €0.1693 (net: €0.11) paid out in respect of the 2014 financial year.


Looking ahead, the Directors noted that they are still optimistic despite the prevailing risks in today’s global environment. In line with the outlook of the International Air Transport Association (IATA), the Directors expect that whilst the drop in the price of oil and strong demand for passenger travel will continue to support passenger growth, the positive outlook of the aviation industry may be disrupted by what IATA described as fragile profitability for airlines.

As previously announced, the Directors are forecasting a further 2.4% growth in passenger movements during 2016 on the back of an increase in seat capacity. Further details in this regard are available at

The results announcement also reiterated MIA’s capital investment plans, details of which are available at


Malta International Airport plc – Financial Statements for the year ended 31 December 2015

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