OREANDA-NEWS. Malaysia Airports Holdings Berhad ("MAHB") had registered earnings before interest, tax, depreciation and amortisation ("EBITDA") of RM861.4 million representing growth for the year of 4.1%, achieving its financial headline KPI for FY2014. The achievement was on the back of a 4.7% growth in passenger movements in Malaysia in 2014. MAHB had recorded revenue of RM3,343.7 million, while profit before tax ("PBT") for the same period grew by 50.8% to RM834.2 million.

In recording its revenue, MAHB adopts IC Interpretation 12: Service Concession Arrangements ("IC12"). Following this, the Group recognises construction revenue and costs in accordance with FRS 111: Construction Contracts by reference to the stage of completion of the construction works of infrastructure assets. For FY2014, MAHB recognised construction revenue and costs of RM662.4 million and RM633.9 million respectively for klia2. These revenue and costs were recognised upon the completion of klia2 and Penang International Airport.

Excluding construction revenue and costs, MAHB registered revenue of RM2,681.3 million for FY2014 which was 8.9% higher than the RM2,462.9 million registered in its corresponding period in 2013 ("FY2013"). PBT had increased by 67.4% to RM805.6 million while profit after tax ("PAT") had also increased by 135.6% to RM720.0 million from RM305.6 million in FY2013.

The higher operating revenues were attributable to improved results from the airport operations segment which grew by 7.9% to RM2,509.8 million. Revenue in non-airport operations segments grew by 24.5% to RM171.6 million. The increase in PBT and PAT were attributable to gains arising from the acquisition of the final 40% stake in Istanbul Sabiha Gokcen Uluslararasi Havalimani Yatirim, Yapim ve Isletme A.S. ("ISG") and LGM Havalimani Isletmeleri Ticaret ve Turizm A.S. ("LGM") upon which both entities became wholly owned subsidiaries of MAHB effective 31 December 2014. RM379.1 million was recognised when MAHB acquired ISG for less than its fair market value, also known as gain on bargain purchase. A further RM502.5 million was also recognised as gains from fair value re-measurement of ISG and LGM assets.

The increase in PBT and PAT was offset by impairment of goodwill, associate and unquoted shares of RM229.4 million, RM9.0 million and RM15.0 million respectively. If the gain on bargain purchase, gain arising from re-measurement of fair value of ISG, and various impairments are excluded, the Group will have recorded a PBT of RM177.5 million. The increase was also dampened by higher operating, finance, depreciation and amortisation costs as well as the recognition of previously unrecognised one-off losses upon the acquisition of the 40% stake in ISG back in April 2014, amounting to RM42.5 million.