During a meeting of Malta International Airport plc’s Board of Directors held on 24 February 2021, the Company approved its financial statements for the year ended 31 December 2020 and announced the date of its 29th Annual General Meeting.
Financial Results for 2020
Malta International Airport’s passenger traffic for 2020 suffered a drop of 76.1%, which led the Company to register the worst traffic result since the airport’s privatisation in 2002. The decline in passenger numbers heavily impacted the Group’s financial performance in 2020.
Malta International Airport plc reported that total revenue for the Group had decreased by €68 million (-67.9%) compared to 2019, with revenue from the Company’s aviation segment registering a drop of 74.8% and revenue from the non-aviation segment, which includes rents, parking, and VIP products, dropping 51.4%.
The earnings before interest, taxation, depreciation and amortisation (EBITDA) of the Group decreased by 91.1%; from €63.2 million in 2019 to €5.6 million in 2020. Consequently, the EBITDA margin dropped 45.6 percentage points, from 63.0% in 2019 to 17.4% in 2020.
In contrast with 2019, when the Group closed the year with profit after tax amounting to €33.9 million, Malta International Airport plc ended 2020 with a net loss of €4.3 million at Group level.
The Group’s financial statements show that, through a strict cost-cutting and liquidity preservation programme, Malta International Airport plc had succeeded in lowering its total expenditure during the reporting period to €26.6 million (-28.3%). Group staff costs registered a decrease of €2.2 million (-20.2%), which resulted from the Covid Wage Supplement scheme and temporary salary reductions between April and July 2020, while operating expenses decreased by €8.3 million (-31.8%).
The full approved financial statements can be accessed at this link.
Having considered the Group’s performance for 2020 and the limited visibility of the way ahead, the Board of Directors believe that, with a view to manage the Company’s cash reserves in a moment of severe curtailment of revenue generation and maintain the Company’s organisational set-up and structures in a state that would allow the Company to recover immediately once the situation normalises, it is prudent not to recommend a dividend payment for the financial year 2020.
The Board of Directors also announced that the Company’s 29th Annual General Meeting will be held on Wednesday 5 May 2021. Shareholders on the register of members at the Central Securities Depository at close of business on Monday 5 April 2021 shall be eligible to receive notice, attend and vote at the next annual general meeting.
Shareholders are reminded that, following changes to the law and Malta International Airport’s Memorandum and Articles of Association, the Company will not be distributing a hard copy of its annual report to all its shareholders by mail, but rather make it available on its website.