a decrease of more than 20% on financial performance
14 February 2007
Subject: Notification of information regarding a decrease of more than 20% on financial performance for the 1st Quarter of fiscal year 2007 compared with the same period of previous year
To: President, The Stock Exchange of Thailand
According to the Stock Exchange of Thailand (SET)'s regulation, any listed companies with deviation on financial performance on quarterly basis more than 20% will have to provide detailed explanation for such deviation.
The financial statements for the 1st Quarter of fiscal year 2007 (October 1st ,2006-December 31th ,2006) of Airports of Thailand Public Company Limited and its subsidiaries (AOT) state that total operating revenues are Baht 4,991.75 million. Total operating expenses are Baht 3,955.43 million. Operating income is Baht 1,036.32 million. Profit before interest and income tax expenses is Baht 2,401.86 million. Net profit is Baht 1,363.18 million which is a decrease of Baht 1,936.29 million or 58.68% drop from the 1st Quarter of fiscal year 2006's net profit of Baht 3,299.47 million.
Please find the detailed explanation as follows:
1.An increase in total operating revenues of Baht 985.16 million or 24.59% rise from Baht 4,006.59 million in the 1st Quarter of fiscal year 2006 to Baht 4,991.75 million in the 1st Quarter of fiscal year 2007, is due to the continuous growth on aircraft, passenger and cargo movements of 8.15%, 12.53% and 3.31% accordingly, in conjunction with the growth of 33% on Low Cost Carrier's aircraft and passenger movements.
As a result of the incremental rental and service spaces at Suvarnabhumi Airport, AOT has experienced an increase in Non-Aeronautical revenues of Baht 768.41 million or 51.75% rise which consist of an increase in office and state property rents of Baht 123.95 million, increase in service revenues of Baht 446.14 million and increase in concession revenues of Baht 198.33 million as well as revenue from Suvarnabhumi Airport Hotel of Baht 180.81 million.
2.An increase in total operating expenses of Baht 2,353.82 million or 146.97% rise, from the 1st Quarter of fiscal year 2006 to Baht 3,955.43 million in the 1st Quarter of fiscal year 2007, is mainly due to the commencement of Suvarnabhumi Airport since September 28th, 2006.
Please find detailed explanation as follows:
- Total depreciation and amortization of Suvarnabhumi Airport, Public Transportation Center and Suvarnabhumi Airport Hotel of Baht 1,675.69 million have increased Baht 1,341.61 million or 401.58% rise from the 1st Quarter of fiscal year 2006.
- Operating expenses have increased Baht 724.87 million or 127.02% rise due to an increase in outsourced activities for Suvarnabhumi Airport of Baht 366.29 million, increase in utilities expenses of Baht 250.79 million and increase in Suvarnabhumi Airport Hotel's operating expenses of Baht 107.79 million.
- Repair and maintenance expenses have increased Baht 103.82 million or 251.26% rise due to an increase in repair and maintenance expenses on baggage handling conveyors of Baht 75.82 million, increase in repair expenses for electronic equipment, elevators, escalators and moving sidewalks of Baht 23.31 million, increase in repair expenses for runways and taxiways of Baht 8.90 million. However, the repair expenses on aerobridge and weapon detectors have decreased for Baht 4.21 million.
3.Interest expenses for the 1st Quarter of fiscal year 2007 are Baht 588.49 million which are the interest expenses for the construction of Suvarnabhumi Airport and Suvarnabhumi Airport Hotel. AOT has recognized the 1st Quarter of fiscal year 2006's interest expenses under asset under construction.
As a result, the net profit has decreased Baht 1,936.29 million or 58.68% drop. Earning per share has decreased to Baht 0.95 from Baht 2.31 in the 1st Quarter of fiscal year 2006.
Please be informed accordingly.
Senior Executive Vice President (Planning and Finance)