On 17 March 2011, Malta International Airport plc published its 2010 preliminary results revealing a 10.5% increase in revenue to €46.5 million on the back of a 12.9% increase in passenger numbers to a record 3.29 million passenger movements. During 2010, the airport operator also focused on containing costs resulting in several cost-savings particularly in maintenance, cleaning and telecommunications. However these were not enough to offset the €1.09 million rise in utility costs, the €0.64 million in early retirement costs and a €0.53 million rise in staff costs.
Nonetheless MIA reported an earnings before interest, tax, depreciation and amortisation (EBITDA) of €23.23 million representing a 12.2% increase over the corresponding figure last year. Likewise, the EBITDA margin improved from 44.6% in 2009 to 45.25% in 2010. After accounting for a lower depreciation charge and financing costs unchanged of €1.5 million, the Group registered a pre-tax profit of €16.97 million, 20.1% higher than the pre-tax profit in 2009. Similarly, net profit increased by 20.9% to €10.69 million.
During 2010, MIA made several investments in the airport infrastructure including upgrading of taxiways and the widening of the pavement areas. MIA also invested in a number of photovoltaic cells (50% financed through Government grants) in order to partially mitigate the increase in utility costs. Nonetheless, the most significant investment during the year under review was the SkyParks Business Centre. This property is expected to cost €16 million and should be completed by the end of the third quarter of 2011.
Looking ahead, the Directors confirmed that MIA is looking to maintain the record number of passengers registered in 2010. The airport operator noted that that passenger traffic is expected to remain strong during the first half of the year and this is expected to be complemented by the Cruise & Fly operations set to commence in May. On the other hand, the restructuring of Air Malta plc (MIA’s largest client) and the political unrest in the North African region could affect passenger throughput during 2011.
The Directors recommended a final gross dividend of €0.053846 per share (net dividend of €0.035 per share) to those shareholders as at close of trading on 30 March. Coupled with the interim gross dividend of €0.046154 per share, the total gross dividend for 2010 of €0.10 per share represents an increase of 11.1% over last year’s dividend. The dividend payout ratio was reduced from 89.5% in 2009 to 82.3% in 2010. The dividend will be paid by not later than 17 May following approval by shareholders at the upcoming Annual General Meeting scheduled for 5 May.
Download a copy of the 2010 MIA Preliminary Results.