Retail revenue per passenger at Kuala Lumpur International Airport has fallen across the board at the main terminal, the low cost terminal (LCCT) and at Eraman, the wholly-owned retail subsidiary of Malaysia Airports Holdings Berhad (MAHB).

 

MAHB, which runs 39 airports in Malaysia, has reported first half results showing that retail sales increased more slowly that passenger growth – at a time when it has also had to delay the opening of the low cost terminal, KLIA2, by a year.

 

At KLIA, the main Malaysian hub for duty free and travel retail sales, total commercial revenue rose from MYR614.9m ($191.7m) to MYR657.7m ($205m) but sales per passenger fell -7.4% from MYR31.86 to MYR29.50 (see table below). The larger per-pax decline was recorded in the main terminal (-11.1%) while the LCCT decline was -2.8%.

 

Eraman, meanwhile, also saw its KLIA sales rise to MYR248.8m ($77.6m) but not in line with traffic growth, resulting in a per-pax decline of -6.0% to MYR11.16 (see second table below).

 

 

 

MALAYSIAN NON-AERO SNAPSHOT

Overall, MAHB recorded non-aeronautical revenue growth of +9.3% to MYR523.6m ($163.1m) on the back of what it says was “improved performance in the retail and rental businesses”.

 

MAHB’s own retail business grew +9.7%, which was below passenger growth of +13.6% in H1, with a total of 37m passengers having passed through MAHB’s 39 airports in Malaysia. International passenger movements recorded even stronger growth at 14.4% [compared with +12.8% for domestic] while the total passenger movements in KLIA increased by +15.5% [KLIA-MTB was +19.7% and the LCCT rose +11.2%].

 

Revenue from rental of space, advertising and other commercial segments grew +8.8% to RM240.3m ($74.8m), mainly thanks to higher rental royalties resulting from higher sales at KLIA and increased car park revenue due to more air passengers and airport visitors.

 

HEADLINE PERFORMANCE DATA

MAHB had revenue of MYR2,005.4m for the six months ended 30 June, a growth of +36.8% compared to MYR1,465.5m in the same period in 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew +8.2% to MYR452.6m, from MYR418.5m in H1 2012, while profit after tax grew +12.0% to MYR227.8m in the half year 2013 (see below).

 

 

KLIA2 UPDATE

MAHB says that – further to its 18 June announcement that joint venture contractor UEMC-Bina Puri, has confirmed a completion date of 30 April 2014 – it is targeting KLIA2 to start operations on 2 May 2014.

[A review of KLIA2 can be found in the May issue of TRBusiness here (and going to p71).]