Malta International Airport plc - Interim Results & Dividend Announcement

Malta International Airport plc published its interim results to 30 June 2007 following a Board of Directors’ meeting held on 26 July.

The Directors declared a net interim dividend of 2c5 per share (3c85 gross). The interim dividend is payable to those shareholders as at close of trading on 31 July with the equity trading ex-dividend as from 1 August.

During the first six months of 2007, MIA’s total operating income grew by 9.2% to Lm7.9 million as a result of an increase in passenger departures (+6%), aircraft arrivals (+8.9%) and cargo traffic (+4.5%). Income from regulated fees comprising the passenger service charge, aircraft landing and parking fees as well as security fees increased by 8.1% during the period under review to Lm5.5 million. The passenger service charge of Lm6.80 per departing passenger generated income of Lm4.1 million in the first half of the year, accounting for 52% of MIA’s total operating income.
Aircraft landing and parking fees of Lm0.8 million represent 11% of total income with security fees of Lm0.57 million accounting for 7% of the Company’s total income. MIA’s regulated fees are expected to remain unchanged until 1 April 2009, after which the Airport Charges and Regulatory Board must devise a revised formula applicable to any changes to the regulated fees, amongst which the passenger service charge. Revenues from retail concession outlets increased by 10.4% to Lm0.86 million (10.8% of total income). Recharges of expenditure and other income comprising rental income and advertising revenue increased by 9.1% to Lm0.94 million accounting for 11.9% of the Company’s operating income. Revenue from aviation concessions totalled just under Lm0.6 million in the first six months of 2007, an increase of 19% from the comparative period.

MIA’s operating costs edged 3.9% higher to Lm5.8 million with staff costs rising by 2.5% to Lm1.8 million and other operating costs up 3.4% to Lm3.1 million. The depreciation charge increased by 9% to Lm0.88 million reflecting the increased investment in the Terminal as part of compliance with Schengen requirements. The operating profit of Lm2.18 million during the first half of 2007 represents a rise of 25.7% over the comparative period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 20% to Lm3.1 million with an improvement in the EBITDA margin to 38.8% (June 2006: 35.2%). Finance costs increased by 9.3% to Lm0.49 million reflecting the rise in local interest rates.

The Company’s pre-tax profit during the first half of the year increased by 32% to Lm1.7 million. After accounting for taxation, the profit for the period amounted to Lm1.13 million, compared to Lm0.86 million in the six months to 30 June 2006. The earnings per share also increased by 32% to 1c67 (June 2006: 1c26).

Total assets as at 30 June 2007 amounted to Lm48.4 million with shareholders’ funds at Lm21.2 million. Based on the total number of shares in issue of 67,650,000, MIA’s net asset value per share is of Lm0.313. The annualised post-tax return on equity (profit after tax dividend by average shareholders’ funds) is of 10.6% (June 2006: 7.7%) with annualised return on assets (pre-tax profit divided by average assets) of 7.1% (June 2006: 5.2%). On a pre-tax basis, MIA’s return on equity is 16.3%.

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