📋 Tender Overview
Most profitable quarter this year for non-aviation businesses, with segmental EBITDA of RM142 million and a net profit of RM127 million Solid final quarter for the Aviation Group, driven by RM57 ancillary income per pax, with lower fuel costs boosting EBITDA 4x to RM1.2 billion, even with 19 non-active aircraftFY2025 targets: RM28 bil revenue, RM5.5 bil EBITDA, 6% net profit marginSEPANG, 28 February 2024 - Capital A Berhad (Capital A or the Group) today reported its unaudited financial results for the fourth quarter ended 31 December 2024 (4Q2024), including its full-year Financial Results of 2024 (FY2024).With the aviation business disposal near completion, the Group has adopted a revised financial reporting format. Continuing operations--Capital As non-aviation businesses--are presented separately from the discontinued aviation operations.Highlights of Non-Aviation BusinessesOverall, Capital As non-aviation companies delivered promising growth, generating over RM880 million in pre-elimination revenue in 4Q2024, up 39% YoY. Teleport, ADE and AirAsia MOVE were key contributors, accounting for 40%, 23% and 19% of revenue, respectively. The recorded EBITDA was RM142 million for a 16% margin, resulting in a Profit After Tax (PAT) of RM126.7 million. This was the most profitable quarter of the year for the non-aviation companies.For FY2024, the non-aviation companies recorded a revenue of just under RM3.0 billion --accounting for 14% of Group revenue--and RM147 million in PAT.ADEQuarterly revenue increased by 20% YoY to RM201 million, PAT of RM24.8 million (12% margin)Growth driven by a 19% YoY jump in component sales and notably higher base maintenance revenue in line with new hangar capacity, pushing FY2024 revenue up 27% YoY to RM727 millionHowever, EBITDA margin for the quarter fell 13ppts YoY to 15% on higher staff costs and upfront costs related to the new 14-line hangar in Sepang, translating to EBITDA of RM31 million in 4Q2024Full-year EBITDA margin saw a smaller 6ppts YoY slide to 19%, for PAT of RM72.1 million for FY2024CEO of ADE, Mahesh Kumar comments on the business outlook:Out of the 14 newly launched hangar lines in Sepang, three lines will be dedicated to widebody aircraft, which is expected to boost margins. The rest will service narrowbodies. We have also secured land from Malaysia Airports to build four additional hangar lines at KLIA. In addition to base maintenance, we are on track to complete our new composite and component repair workshop in Nilai early this year. This facility will include an aircraft engineering training centre to ensure a sustainable pipeline of talent to feed into ADE. Our GMF joint venture for a specialised landing gear workshop is on track to be completed by year-end, and we are working towards expanded coverage in Cambodia, Indonesia and the Philippines.AirAsia MOVEAirAsia MOVE improved growth trajectory in 4Q24 from the preceding quarter, closing with RM166 million in revenue, up 29% Quarter-on-Quarter (QoQ)Transactions grew by 10.4% with a 16.2% increase in MAUs on the back of simplified booking flow and data marketing capabilitiesAirAsia Flights grew 11% QoQ, FlyBeyond and Hotels grew +37% and +130% YoY respectively, while Rides airport completion rate improved by 16%AirAsia MOVE launched its in-house duty-free platform on the app as a new revenue streamAlong with cost optimisation, this resulted in EBITDA growing 24% YoY to RM77 million in 4Q2024CEO of AirAsia MOVE, Nadia Omer comments on the business outlook:After 2024s cost optimisations, 2025 marks a step-up in investment and scale. We aim for a steady QoQ growth in transactions across Airlines, Hotels and Rides by investing in demand generation, exclusive promotions and hyper-personalisation. Weve also expanded into duty-free, the first OTA in the region to do so, with early results proving profitable. Meanwhile, upgrades to our tech stack will improve speed, stability and booking ease. A major focus is streamlining bookings and refunds, targeting a 15% YoY increase in customer satisfaction and net promoter score. Now that were leaner, we are investing some of our structural cost savings into early detection tools, AI and automation. Our biggest customer service initiative this year is AskBo 2.0, transitioning from legacy tech to an AI-powered travel concierge co-developed with Google. With these priorities, we are targeting to improve customer experience, accelerate growth, strengthen profitability and redefine budget travel in Asean.TeleportTeleport achieved a record revenue of RM352 million (~USD77 million) in 4Q2024 (+58% YoY), driven by continued eCommerce growth from direct marketplaces which saw a 44% rise in parcel volumes and 33% increase in cargo volumesEcommerce revenue surged 172% YoY to RM142 million (USD31.3 million) and now accounts for 41% of total revenue, up from 23% in 4Q2023This marks strong progress in Teleports revenue diversification efforts to grow beyond traditional air cargo and AirAsia belly space, with 53% of revenue in 4Q2024 derived from non-AirAsia capacityTeleport Next Day, contributing 2% of eCommerce revenue in 4Q2024, is growing, with last-mile operations already profitable across all markets and new China-Asean lanes to launch next quarter4Q2024 also delivered the highest quarterly EBITDA of the year at RM29.7 million (USD6.5 million), marking a 235% QoQ increaseFor FY2024, Teleports revenue reached RM1.1 billion, marking a ~49% YoY growth for the second consecutive year, and RM90 million in EBITDA, representing a 215% YoY increase.This significant improvement reflects an important inflection point in the business model, as scale translates to improved margins, particularly as Teleport remains disciplined in managing fixed costsCEO of Teleport, Pete Chareonwongsak comments on the business outlook:Team Teleports Year of the Build in 2024, focused on strengthening our foundational operating model, has yielded record results, exceeding our RM1 billion fu
