News
MD & A
No. 5626
14 August 2007
Subject: Management Discussion and Analysis
To: President, The Stock Exchange of Thailand
Management Discussion and Analysis for the three - month and nine - month period ended June 30th, 2007 and 2006 for Airports of Thailand Public Company Limited and its subsidiaries
1.Operating results of Airports of Thailand Public Company Limited and its subsidiaries (AOT)
1.1 The operating results for the three - month period
Operating results of Airports of Thailand Public Company Limited and its subsidiaries (AOT) for the 3rd Quarter of 2007, (April 1st - June 30th , 2007), AOT has operating revenues of Baht 4,664.82 million, a year-on-year increase of Baht 710.33 million, or a 17.96% rise. The increase is attributable to:
An increase in aeronautical revenues of Baht 764.08 million, a year-on-year increase of 31.00% due to an increasing number of aircraft and passenger movements of 11.93% and 5.22% accordingly and also the increase in the passenger service charges for international passenger from Baht 500 to Baht 700 and domestic passenger from Baht 50 to Baht 100 since February 1, 2007 by including in the ticket at agency level. Moreover,there are also the increases in landing and parking charges which was effective in April 1st,2007 according to the Civil Aviation Regulations No.66 which was effective in October 1st, 2006 but AOT has decided to postpone these increases in order to give an incentive to the airlines for promoting Suvarnabhumi Airport.
A decrease in non-aeronautical revenues of Baht 53.75 million, a year-on-year decrease of 3.61% mainly due to the unrecognizing of the revenues from both duty free and commercial activities between AOT and King Power Duty Free Plc. and King Power International Plc. of Baht 863.97 million in the 3rd Quarter of fiscal year 2007.
AOT has operating expenses of Baht 4,377.21 million, a year-on-year increase of Baht 2,541.28 million, or a 138.42% rise due to the commercial operations of Suvarnabhumi Airport, Novotel Suvarnabhumi Airport Hotel and Don Muang International Airport leading to the increases in the depreciation, outsourcing expense,utilities expenses and also the higher insurance premium, fuel cost, repair and maintenance expenses and also interest expenses. Thus, the net profit for the 3rd Quarter of fiscal year 2007 of Baht 331.30 million, a year-on-year decrease of Baht 1,755.43 million, or a 84.12% drop resulting in a decrease of the basic earnings per share, which is at Baht 0.23, lower than the 3rd Quarter of 2006 which is at Baht 1.46
The comparison between key operating results of the 3rd Quarter of fiscal year 2007 and 2006 is as follows:
|
Unit: Million (Baht) |
Q3/2007 |
Q3/2006 |
Increase (Decrease) |
%changes |
| Operating revenues |
4,664.82 |
3,954.49 |
710.33 |
17.96 |
| Aeronautical revenue |
3,229.23 |
2,465.15 |
764.08 |
31.00 |
| Non- aeronautical revenue |
1,435.59 |
1,489.34 |
(53.75) |
(3.61) |
| Operating Expenses |
4,377.21 |
1,835.93 |
2,541.28 |
138.42 |
| Operating Income |
287.61 |
2,118.56 |
(1,830.95) |
(86.42) |
| Earning before interest and income tax expenses |
1,853.99 |
2,244.41 |
(390.42) |
(17.40) |
| Net profit |
331.30 |
2,086.73 |
(1,755.43) |
(84.12) |
| Basic earnings per share (Baht) |
0.23 |
1.46 |
(1.23) |
Aeronautical Revenues AOT has aeronautical revenues of Baht 3,229.23 million, a year-on-year increase of Baht 764.08 million, or a 31.00 % rise. The increase is attributable to:
- Landing and Parking Charges of Baht 1,035.90 million, a year-on-year increase of Baht 194.47 million or a 23.11% rise
- Passenger Service Charges of Baht 2,087.00 million, a year-on-year increase of Baht 541.04 million or a 35.00% rise
- Aircraft Service Charges of Baht 106.33 million, a year-on-year increase of 28.57 million or a 36.74% rise
Non-Aeronautical Revenues AOT has non-aeronautical revenues of Baht 1,435.59 million, a year-on-year decrease of Baht 53.75 million, or a 3.61 % rise
The Operating Expenses AOT has total operating expenses of Baht 4,377.21 million, a year-on-year increase of Baht 2,541.28 million or a 138.42% rise. The increase is attributable to:
- Personnel Expenses of Baht 598.15 million, a year-on-year increase of Baht 30.44 million or an 5.36% rise
- Operating Expenses of Baht 1,408.77 million, a year-on-year increase of Baht 739.92 million or an 110.63% rise due to an increasing numbers of outsourced workers for the commercial operations of Suvarnabhumi Airport on September 28, 2006 and the reopening for the commercial traffics of Don Muang International Airport on March 25, 2007. Moreover, the increase is also comprised of a rise in the utility expenses,fuel cost, the insurance premium and also the increase in the passenger service charge collecting fee and the Novotel Suvarnabhumi Airport Hotel's operating expenses
- Repair and Maintenance Expenses of Baht 184.18 million, a year-on-year increase of Baht 93.18 million or a 102.40 % rise due to the repair and maintenance expenses of baggage handling conveyors,electronic equipment, cooling system, runways and taxiways and sanitary ware
- Depreciation and Amortization of Baht 1,984.81 million, a year-on-year increase of Baht 1,657.34 million or a 506.10% rise.
- An increase in interest expenses of Baht 568.57 million, a 15081.43% rise mainly due to the principal repayment of the loan for Suvarnabhumi airport and Novotel Suvarnabhumi Airport Hotel which is recorded as an asset under construction in the 3rd Quarter of 2006.
1.2 The operating results for the nine - month period (October 1, 2006 - June 30, 2007)
AOT has the net profit of Baht 1,557.49 million, a year-on-year decrease of Baht 7,560.08 million, or a 82.92% drop resulting in a decrease of the basic earnings per share, which is at Baht 1.09, lower than the previous year period which is at Baht 6.38
The comparison between key operating results of the nine month period ended June 30th , 2007 and 2006 is as follows:
|
Unit: Million (Baht) |
2007 |
2006 |
Increase (Decrease) |
%changes |
| Operating revenues |
13,716.23 |
12,239.26 |
1,476.97 |
12.07 |
| Aeronautical revenue |
9,674.82 |
7,729.05 |
1,945.77 |
25.17 |
| Non- aeronautical revenue |
4,041.41 |
4,510.21 |
(468.80) |
(10.39) |
| Operating Expenses |
12,355.23 |
5,159.79 |
7,195.44 |
139.45 |
| Operating Income |
1,361.00 |
7,079.47 |
(5,718.47) |
(80.78) |
| Earning before income tax expenses |
4,841.41 |
11,194.09 |
(6,352.68) |
(56.75) |
| Net profit |
1,557.49 |
9,117.57 |
(7,560.08) |
(82.92) |
| Basic earnings per share (Baht) |
1.09 |
6.38 |
(5.29) |
2. The financial statements of Airports of Thailand Public Company Limited and its subsidiaries as at June 30th, 2007 compared with the end of fiscal year 2006 (September 30th, 2006)
As at June 30th, 2007, AOT has total assets of Baht 142,772.43 million, a decrease from the end of fiscal year 2006 (September 30th, 2006) of Baht 7,732.63 million or a 5.42% drop. The assets comprise current assets and non-current assets, which account for 12.46% and 87.54% of total assets respectively. The assets can be elaborated in details as follows:
|
June 30th, 2007 |
September 30th, 2006 | |||
|
Million(Baht) |
% of total assets |
Million(Baht) |
% of total assets | |
| Total current assets |
17,794.53 |
12.46 |
23,539.06 |
15.64 |
| Investments |
544.65 |
0.38 |
567.60 |
0.38 |
| Property, plant and equipment-net |
112,500.83 |
78.80 |
114,077.98 |
75.80 |
| Assets under construction |
6,021.26 |
4.22 |
4,670.14 |
3.10 |
| Intangible assets and other non-current assets |
5,911.16 |
4.14 |
7,650.28 |
5.08 |
The current assets have decreased for Baht 5,744.53 million, a 24.40% drop mainly due to a decrease in bank deposit in order to pay an annual dividend of 2006.
Property, plant and equipment - net have decreased for Baht 1,577.15 million, a 1.38% drop due to the depreciation of Suvarnabhumi airport and Novotel Suvarnabhumi Airport Hotel.
Assets under construction have increased for Baht 1,351.12 million, a 28.93% rise due to an additional construction work at Suvarnabhumi airport and regional airports.
As at June 30th, 2007, AOT has total liabilities of Baht 72,730.52 million, a decrease of Baht 6,726.56 million or a 8.47% drop, which comprise
|
June 30th, 2007 |
September 30th, 2006 | |||
|
Million(Baht) |
% of total liabilities |
Million(Baht) |
% of total liabilities | |
| Current liabilities (including current portion of long-term loans) |
9,051.93 |
12.45 |
13,993.24 |
17.61 |
| Long-term loans |
50,359.01 |
69.24 |
55,942.02 |
70.41 |
| Concession revenue |
4,460.00 |
6.13 |
4,460.00 |
5.61 |
| Other non-current liabilities |
8,859.58 |
12.18 |
5,061.83 |
6.37 |
Current liabilities (including current portion of long-term loans) have decreased from the end of fiscal year 2006 by Baht 4,941.31 million or a 35.31% drop because of the payment to the account payable for the construction of Suvarnabhumi airport, payment of 2006 interim dividend and an accrued bonus payment of 2006.
Long-term loans have decreased from the end of fiscal year 2006 by Baht 5,583.01 million or a 9.98% drop due to the repayment of the loan for Suvarnabhumi airport's construction
Other non-current liabilities have increased from the end of fiscal year 2006 by Baht 3,797.75 million or a 75.02% rise due to the application of financial derivative of cross currency swap with local and foreign financial institutes.
As at June 30th, 2007 AOT has shareholders' equity of Baht 70,014.91 million, a year-on-year decrease of Baht 1,006.06 million or a 1.42% drop partly due to an annual dividend payment of 2006.
For cash flow position as at June 30th, 2007, cash and cash equivalents totals Baht 12,846.66 million, a decrease from the beginning of fiscal year 2007 of Baht 6,913.00 million or a 34.98% drop. In short, the details of the sources and uses of funds are as follows:
- Net cash received from operating activities accounts for Baht 1,920.73 million.
- Net cash payment for investing activities accounts for Baht 7,376.44 million, mostly in the investment in software copyright at Suvarnabhumi Airport.
- Net cash received from financing activities accounts for Baht 1,457.29 million due to the repayment of long-term loan for Baht 570.08 million, annual dividend payment of 2006 in addition to the interim payment for Baht 2,571.43 million and an additional disbursement for Baht 1,697.80 million.
Please be informed accordingly.
Yours sincerely,
(Porntip Kanchanasat)
Vice President of Accounting Department
Authorized person
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