Malta International Airport plc - Full-Year Results

On 23 March Malta International Airport plc published its 2011 full year results. The airport operator reported a 2.1% increase in turnover to a record figure of €52.43 million following the 6.5% increase in passenger movements to 3.5 million during the year despite the 3.2% decline in aircraft movements as the seat load factor improved, especially by Air Malta, which is the single largest customer of Malta International Airport.

Overall revenue from the aviation segment edged 2.4% higher to €39.2 million contributing 74.8% of overall revenue. Meanwhile, the retail and property segment generated overall revenue of €12.6 million, representing a 1.3% improvement over the previous year. MIA indicated that the retail and property segment suffered from the loss of revenue due to lack of flights to and from Libya during most of 2011.

Staff costs declined by 10.4% to €8 million reflecting the early retirement schemes that took place in 2010. MIA reported that during 2011 it incurred an additional cost of €1 million in respect of additional early retirements which was included in other operating expenses totalling €19.6 in 2011 (2010: €19.1 million). The airport operator indicated that it managed to save on utility costs, security as well as maintenance but marketing costs grew by 29.1% to €2.5 million reflecting the on-going activities to attract more passengers to Malta. In the preliminary results it was stated that the Group is expected to incur higher marketing costs during 2012. After accounting for a slight reduction in the depreciation charge to just under €5 million, MIA’s operating profit of €19.8 million, representing an increase of 8.8% over 2010.

After deducting net finance costs of €1.2 million and deferred income, MIA reported an 11.5% rise in pre-tax profits to €18.9 million. After accounting for a tax charge of €7 million, the net profit for the year totaled €11.9 million giving an earnings per share of €0.088.

As indicated in January, MIA again confirmed that it is forecasting a slight decline in passenger numbers for 2012 from the record traffic experienced in 2011. MIA registered a decrease in traffic during the first 3 months of 2012 while it expects to consolidate last year’s traffic movements during the summer months.

With respect to the property investment being undertaken, MIA expects the SkyParks Business Centre to start contributing to overall revenue by the end of the second quarter of 2012. MIA stated that the total cost of investment in SkyParks to date amounts to €9.61 million with an additional expense of €8 million to complete the project.

The Board of Directors recommended the payment of a final gross dividend of €0.0615 (€0.04 net) per share to all shareholders as at close of business on 3 April. This represents an increase of 14.3% over last year’s final dividend. Following the interim dividend of €0.0462 (€0.03 net) per share paid in September 2011, the total dividend in respect of the 2011 financial year amounts to €0.1077 per share. The final dividend will be paid on 25 May 2012 following approval at the Annual General Meeting of 10 May.

Download a copy of the Malta International Airport plc 2011 Preliminary Results