Financial performance for Q3 decrease more than 20%
14 August 2007
Subject: Notification of information regarding a decrease of more than 20% on financial performance for the 3rd 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 3rd Quarter of fiscal year 2007 (April 1st-June 30th, 2007) of Airports of Thailand Public Company Limited and its subsidiaries (AOT) stated that total operating revenues were Baht 4,664.82 million. Total operating expenses were Baht 4,377.21 million. Operating income was Baht 287.61 million.Profit before interest and income tax expenses was Baht 1,853.99 million. Net profit was Baht 331.30 million which was a decrease of Baht 1,755.43 million or an 84.12% drop from the 3rd Quarter of fiscal year 2006's net profit of Baht 2,086.73 million.
Please find the detailed explanation as follows:
1. Operating Revenue
In overview, the operating revenues were Baht 4,664.82 million, which was an increase of Baht 710.33 million or a 17.96% rise in the 3rd Quarter of fiscal year 2007. This increase was due to an increase in the aeronautical revenues of Baht 764.08 million or a 31.00% rise. The 3rd Quarter of fiscal year 2007 has shown that the total aircraft movements and total passenger movements have increased about 11.93% and 5.22% YOY respectively. The key driver of the traffic growth was still from the Low Cost Carrier (LCC)'s growth
In addition, an increase in the passenger service charges (PSC) on February 1st, 2007 and the landing and parking charges on April 1st, 2007 was also a part of the increase in AOT's revenue.
However, AOT would still not recognized any revenues from King Power Duty Free Plc. and King Power International Plc. of Baht 863.97 million in 3rd Quarter of fiscal year 2007
2. Operating Expense
Operating Expenses have increased Baht 2,541.28 million or a 138.42% rise to Baht 4,377.21 million in Q3/2007, mainly due to the commercial operations of Suvarnabhumi Airport and Suvarnabhumi Airport Hotel since September 28th, 2006 as well as the reopening for the commercial traffics of Don Muang International Airport since March 25th, 2007.
- Total depreciation and amortization of Baht 1,984.81 million has increased Baht 1,657.34 million or a 506.10% rise YOY.
- Operating expenses of Baht 1,408.77 million, an increase of Baht 739.92 million or a 110.63% rise YOY due to an increase in outsourced workers for Suvarnabhumi Airport, Transportation Center, Suvarnabhumi Airport Hotel, Don Muang International Airport and the increases in utility charges and fuel cost.
- Repair and maintenance expenses of Baht 184.18 million, an increase of Baht 93.18 million or a 102.40% rise YOY due to an increase in repair and maintenance expenses on baggage handling conveyors, electronic equipment, cooling system as well as runways and taxiways.
3. Foreign Exchange Gain
AOT has gained Baht 3,074.74 million from foreign exchange rate adjustment at the end of 3rd Quarter of fiscal year 2007 and lost of Baht 1,761.04 million from cross currency swap. As a result, foreign exchange gain of 3rd Quarter of fiscal year 2007 was Baht 1,313.70 million, an increase of Baht 1,560.68 million or a 631.91% rise YOY
Please see exchange rate detail below:
4. Interest expenses
Interest expenses incurred in 3rd Quarter of fiscal year 2007 was Baht 572.34 million. This amount was the interest paid for loans borrowed for construction of Suvarnabhumi Airport and Suvarnabhumi Airport Hotel which was recognized as asset under construction in 3rd Quarter of fiscal year 2006
5. Income Tax
AOT's income tax for 3rd Quarter of fiscal year 2007 was Baht 965.33 million, an increase of Baht 809.17 million or a 518.17% rise YOY. This amount included tax on the unrecognized non-aeronautical revenues of Baht 454.10 million which AOT has to submit according to the Revenue Department's opinion.
As a result, net profit has dropped Baht 1,755.43 million or a 84.12% drop YOY resulting in a decrease of the basic earning per share, which is at Baht 0.23,lower than the 3rd Quarter of fiscal year 2006 which is at Baht 1.46.
Please be informed accordingly.
Vice President of Accounting Department