MIA expects record revenue and profitability in 2023

The MSE Equity Price Index extended yesterday’s gains as it advanced by a further 0.20% to a fresh 19-month high of 3,836.825 points as the gains in HSBC and Santumas outweighed the decline of BOV. Trading activity in equities was muted at €0.11 million. Download today’s Equity Market Summary.

Yesterday, Malta International Airport plc published its interim results for the first six months of the year and also provided updated forecasts for the 2023 financial year. In the first half of the year, revenues reached a record (at interim stage) of €53.6 million, which is 20% higher than the previous record of €44.6 million generated in the first half of 2019. The growth in income reflects the record passenger movements of 3.43 million between January and June 2023 (Jan-June 2019: 3.25 passenger movements), which translated in ‘Aviation’ revenue of €36.4 million, as well as higher revenues generated from the ‘Retail and Property’ segment, which amounted to €16.8 million. EBITDA amounted to €33.4 million, which is 24.2% higher than the level of €27 million generated in the first six months of 2019. The Board of Directors declared a net interim dividend of €0.03 per share, which is the first interim dividend since 2019. The dividend is payable by not later than Friday 15 September 2023 to all shareholders as at close of trading on Monday 21 August 2023. considering the strong performance in the first six months of 2023 as well as the expectations of an overall positive summer season, MIA updated its targets for the 2023 financial year: passenger movements of 7.2 million (2019: 7.31 million), revenues of €113 million (2019: €100.2 million), EBITDA of €70 million (2019: €63.2 million), net profit of €37 million (2019: €33.9 million), and capital investments of €39 million (2019: €24.9 million).

HSBC Bank Malta plc climbed by a further 3.1% to a fresh three-year high of €1.34 across nine trades totalling 42,441 shares. Yesterday, HSBC Malta announced the interim results for the first six months 2023. Net interest income surged by 94% to €89.7 million (H1 2022: €46.2 million) driven by the strong growth in gross interest income, which offset the higher interest expense. Meanwhile, non-interest income remained virtually unchanged at €16.6 million. HSBC reported a net profit of €38.5 million (restated H1 2022: €11.6 million) which translates into an annualised return on average equity of 16.2% (H1 2022: 5.1%). As a result of the marginal drop in customer deposits and customer loans, the loan-to-deposit ratio remained unchanged at 53%. Shareholders’ funds as at 30 June 2023 amounted to €492.5 million which translates into a net asset value per share of €1.367. The Board of Directors declared a net interim dividend of €0.039 per share, which represents the highest interim dividend paid by HSBC Malta in seven years. The dividend is payable on 15 September 2023 to all shareholders as at close of trading on 10 August 2023.

Santumas Shareholding plc gained 1.6% to the €1.30 level on trivial volumes.

In contrast, Bank of Valletta plc eased by 0.8% to the €1.27 level across nine deals totalling 44,724 shares.

Today, Plaza Centres plc published its financial results covering the six-month period ended 30 June 2023. Revenue advanced by 5% to €1.51 million, but EBITDA remained relatively unchanged at €1.07 million. Meanwhile, Plaza benefitted from lower net finance costs and overall generated a net profit for the period of €0.56 million, which was 21.6% higher than that of the first half of 2022. Shareholders as at close of trading on Friday 11 August 2023 will receive an unchanged net interim dividend of €0.0098 per share. The dividend represents a payout ratio of 44.6% and will be paid on Wednesday 30 August 2022.

Yesterday, PG plc announced that its Board of Directors is scheduled to meet on Thursday 24 August 2023 to consider and approve the Annual Report and financial statements for the year ended 30 April 2023.

The RF MGS Index dropped by 0.27% to 869.447 points. Yesterday, credit rating agency Fitch downgraded the US long-term foreign currency issuer default rating to AA+ from AAA due to expected fiscal deterioration over the next three years. The US 10-year Treasury yield rose to above 4.1%, the highest level since November 2022.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.