Malta International Airport plc - Interim Results

On 1 August 2024, Malta International Airport plc published its interim financial statements covering the six-month period ended 30 June 2024.

Revenues reached a record (at interim stage) of €64.4 million, which is 20% higher than the previous record of €53.6 million generated in the same period in 2023. The growth in income reflects the record passenger movements of 4.07 million between January and June 2023 (Jan-June 2023: 3.43 passenger movements), which translated in ‘Aviation’ revenue of €44.2 million (+21%), as well as higher revenues generated from the ‘Retail and Property’ segment, which amounted to €20.1 million (+19%).

Total operating costs increased by 15.1% to €30.1 million, thus leading to an operating profit (EBIT) of €34.5 million (2023: €27.6 million). Excluding depreciation and amortisation charges, EBITDA amounted to €41 million, which is 22.4% higher than the level of €33.5 million generated in the first six months of 2023.  The airport operator achieved record EBITDA and EBIT margins of 63.6% and 53.5% respectively in H1 2024.

After accounting for minimal net finance costs and a tax charge of €12.1 million, MIA reported a record interim net profit of €22.1 million.

The Statement of Financial Position as at 30 June 2024, when compared to the financial position as at 31 December 2023 shows that total assets increased by 3.7% (or €12.2 million) to €342.8 million, which includes cash balances of €59 million. Total liabilities increased by 4.3% (or €7 million) to €146 million mainly due to the higher level of current tax liabilities. Overall, MIA’s equity base expanded by 3% (or €5.9 million) to €196.7 million.

Dividend  

Considering the Group’s strong financial performance, the Board of Directors declared a net interim dividend of €0.06 per share, which is double the interim dividend paid in 2023. The dividend is payable by not later than Friday 13 September 2024 to all shareholders as at close of trading on Tuesday 20 August 2024.

Infrastructural Investments

The airport operator explained that the capital expenditure for the first six months of 2024 amounted to €28.2 million compared to €7.7 million in the same period in the previous year. The directors report highlighted multiple major projects that are ongoing, including the extension of the La Vallette Departures Lounge, overhaul of the VIP Terminal, pre-development works in preparation for SkyParks Business Centre 2, the westward extension of the terminal and the aircraft parking facility known as Apron X. Furthermore, the airport operator continued with other upgrades to air conditioning systems, improvements to electrical installations, new security scanners, and photovoltaic systems.

Outlook

The Directors report stated that the traffic development is expected to be positive, with a number of airlines planning to extend their summer operations into winter. The airport operator is anticipating growth in the number of weekly flights both on existing routes as well as new destinations.

MIA highlighted that the UK market is projected to recover and exceed 2019 levels, while the gap in the German market is expected to continue to narrow as further seat capacity is deployed.

In conclusion, the Board noted that the outlook for the rest of the year is optimistic and it has confidence that the latest targets published in May 2024 will be achieved.

In May, the airport operator has disclosed the below forecasts:

Passenger movements of 8.45 million (8.3% above the level of passenger movements of 7.8 million in 2023).

Revenue of €132 million (9.8% above the actual revenue of €120.25 million in 2023).

EBITDA of €82 million (9.0% above the actual EBITDA of €75.22 million in 2023).

Net profit of €44 million (9.2% above the actual net profit of €40.3 million in 2023).