On the back of increased passenger movements and stronger contribution from both our airport and non-airport operations, Malaysia Airports has delivered another year of encouraging revenue and earnings growth.
Beyond financial results, the Group has achieved various other noteworthy accomplishments. Among others, they include the completion of Langkawi International Airport (LGK) expansion works which had resulted in a capacity increase from 1.5 million passengers per annum (mppa) to 4 mppa, as well as the completion of the new boarding hall at Istanbul Sabiha Gokcen International Airport (SAW) which resulted in the airport’s capacity increasing by 8 mppa to 41 mppa. For our Malaysia operations, we welcomed eleven new airlines and three charter flight services, and saw 44 new services launched by existing local and foreign airlines. Meanwhile, we welcomed three new airlines at SAW with 13 new services launched by existing carriers. We also kicked off the implementation of the Quality of Service (QoS) framework, strengthened our corporate governance framework and practices as well as enhanced the overall operational efficiency and capabilities across all our business operations.
In August 2018, the Group reached an all-time high market capitalisation of RM16.3 billion with close to 43% of our equity stake being held by foreign investors including super annuity funds. This reflects the strong confidence level among investors, both retail and institutional, in the Group’s business performance, its business model and prospects going forward.
The sustainability and stability of our business performance are attributed to the value creation process we have developed, not only during the year under review but also throughout the preceding years. Given all that we have experienced and shared in FY2018, it has been a journey of progress achieved through technology and innovation, customer centricity service culture, strong core values, and sound business strategies.
It is on this positive note that as your Chairman, I am pleased to share with you the Group’s Annual Report and Audited Financial Statements for the Financial Year Ended 31 December 2018 (FY2018).
Amidst a dynamic period of change and challenge, Malaysia Airports Holdings Berhad (the Group or Malaysia Airports) has continued to deliver another year of growth and progress. The improvements made across the financial year ended 31 December 2018 (FY2018) is reflected not only in financial performance, but also across our airport and non-airport operations, both within Malaysia and abroad.
Through persistence and commitment, team spirit, innovation and continuous improvement, we have emerged stronger and better despite the many difficulties encountered during FY2018. While we are cognisant that we have many more milestones to reach, we draw a measure of confidence from the various operational achievements and highlights realised in FY2018. As Group Chief Executive Officer, I am happy to share these accomplishments with you in what has been a year of significant transition and transformation for Malaysia Airports.
To achieve our vision “To be the Global Leader in Creating Airport Cities”, we recognise that it is not sufficient for us to only create value for shareholders. Instead, we need to build a business that is premised on good governance and creating sustainable value for our stakeholders for the long term, striking a balance between making profits and managing our impact on stakeholders. In particular, to build a sustainable business for the long term, we need to address and manage key economic, environmental, social and governance issues impacting stakeholders.
We established a Sustainability Framework which sets out our broad priorities into 5 pillars:
Over the years, we have successfully evolved into a diversified airport operator group with solid fundamentals. Moving forward, we aim to create more opportunities and value for our stakeholders.
Committed to growing responsibly, we continue to manage and reduce impact on the environment caused by our business operations.
Our employees are our most valuable asset, as skilled employees prove to be a vital component in delivering high level competencies in our business practices.
We continue to build on our proud tradition of giving back to the broader community by supporting and strengthening community engagement especially within the vicinity of our operations.
Our mission is centred on creating joyful experiences especially at our airports. Our aim is to become a service leader by embedding a customer-centric culture into our operations.