Capital A Rebounds With Net Profit Of Rm1 1bil In Q2

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Capital A’s Q2 FY2023 revenue surged 115.75% to RM3.15 billion from RM1.46 billion last year, driven by the revival of air travel during the period.PETALING JAYA: Aviation group Capital A Bhd has returned to the black in the second quarter ended June 30 (Q2 FY2023) with a net profit of RM1.11 billion from a net loss of RM931.22 million a year ago.
The turnaround in earnings was primarily due to a gain of RM1.37 billion from “remeasurement” of an associate to subsidiary, Asia Aviation Public Company Ltd Group (AAV), in June 2023 and foreign exchange loss of RM158.6 million due to the US dollar’s appreciation against local currencies during the quarter.
The AirAsia parent company’s quarterly revenue surged 115.75% to RM3.15 billion from RM1.46 billion previously, driven by the revival of air travel during the period.
Ads by Kiosked“The increase was mainly attributed to the strong recovery in demand from both domestic and international travel,” Capital A said in a filing with Bursa Malaysia today.
The group said 92% of its revenue was attributed to the aviation segment while 5% of revenue was derived from the logistics business, 2% from digital and other businesses, and the remaining 1% was from its engineering business.
For Q2 FY2023, earnings before interest, taxes, depreciation and amortisation (Ebitda) came in positive at RM461.9 million compared with an Ebitda of RM108.6 million in Q2 FY2022 due to the improvement in the performance of the aviation segment.
The Aviation Group recorded revenue of RM2.87 billion for Q2 FY2023, up 109% compared with the same period last year in tandem with the upsurge of domestic and international travel.
The aviation segment posted an Ebitda of RM404 million in Q2 compared with RM151.5 million last year backed by higher number of passengers carried and capacity, consistent with the higher number of operational aircraft.
Its Asia Digital Engineering segment reported a 37% year-on-year (y-o-y) increase in Ebitda of RM36.8 million driven by the increase in revenues and its lean and efficient cost structure.
Ads by KioskedIn its digital segment, airasia Superapp recorded an Ebitda of RM39.7 million, marking its fifth consecutive quarter reporting a positive Ebitda.
Similarly, its logistics company Teleport achieved an Ebitda of RM9.2 million, making it its fourth consecutive quarter of positive Ebitda while Santan, its in-flight catering business, achieved a positive Ebitda of RM2.2 million.
Consolidation exercise
In a separate statement, CEO Tony Fernandes said during the quarter, AirAsia Group increased its effective control of Philippine AirAsia to 100%.
“We have finally brought together the four short-haul airlines under AAV, comprising AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia and AirAsia Philippines in our Q2 FY2023 financial performance,” he said, adding this allows analysts and investors to have a clearer view of its accounts.
AirAsia Aviation Group CEO Bo Lingam said the group anticipates costs to continue its downward trend as a result of the consolidation of AAV, enabling Capital A to achieve cost efficiency in aircraft maintenance, staff and user charges.
Ads by Kiosked“Amid this landscape, the group’s expansion in Asean remains dynamic, with the imminent launch of AirAsia Cambodia expected to further contribute to our growth,” he said in the same statement.
“As of today, we have successfully taken 175 aircraft out of storage, expecting to restore into service 180 by the end of Q3. Our target is to reinstate a total of 200 planes back into operations by year end,” he added.
Capital A’s shares closed 7.5 sen or 7.28% lower at 96 sen, giving the group a market capitalisation of RM4.02 billion. - FMT

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