KUALA LUMPUR: Capital A Bhd (KL:CAPITALA) ended the final quarter of 2024 with a bigger net loss, again dragged by foreign exchange (forex) losses, despite registering higher revenue from its continuing operations.
Net loss for the three months ended Dec 31, 2024 (4QFY2024) stood at RM1.57 billion, versus losses of RM345.31 million a year earlier, as the group booked RM1.4 billion in forex losses from the aviation business.
This is Capital A’s biggest quarterly loss in the post-pandemic period, after incurring a net loss of RM2.44 billion in 4QFY2020.
Quarterly revenue, however, rose 33.87% to RM443.33 million compared with RM331.16 million in 4QFY2023, thanks to improved performance in logistics, MRO (maintenance, repair and overhaul) services and digital businesses.
No dividend was declared during the quarter. The last dividend from Capital A was 90 sen per share for FY2019.
The group’s continuing operations — excluding the aviation segment due to a planned disposal to sister company AirAsia X Bhd (KL:AAX) — recorded a revenue increase of 39% to RM880.1 million in 4QFY2024.
The logistics segment, involving air cargo unit Teleport, contributed 40% of this, while MRO services (ADE) accounted for 23% and the online travel platform 19%.
The discontinued aviation segment’s revenue rose 8% to RM4.82 billion. Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased to RM1.17 billion in the quarter, compared with RM295.2 million a year ago.
For the full financial year ended Dec 31, 2024 (FY2024), Capital A posted a net loss of RM475.11 million from a net profit of RM255.32 million in FY2023. Full-year revenue of continuing operations increased 16.98% to its all-time high of RM1.5 billion, compared with RM1.28 billion.
Capital A sets earnings targets, sees PN17 exit by 2Q
Along with the results release, Capital A has published its own internal targets for FY2025.
It expects its non-aviation revenue to hit RM4 billion with an Ebitda of RM600 million, giving the group a 10% net operating profit margin.
Its aviation segment, meanwhile, is targeted to achieve RM24 billion in revenue, an Ebitda of RM4.8 billion and a 5% net operating profit margin, assuming all aircraft take to the skies.
“Ambitious, but I believe the worst is behind us and it’s time to reap all the hard work we’ve put into rebuilding,” Capital A chief executive officer (CEO) Tan Sri Tony Fernandes said in a statement.
Fernandes also expects Capital A to exit its Practice Note 17 (PN17) status by the “end of quarter two”, pending related approvals.
Capital A’s Aviation Group CEO Bo Lingam said that moving onwards, the group will focus on cost, trimming its debt and optimising routes to double down on the most profitable ones.
“We’re also committed to strengthening domestic market share by increasing flight frequencies from our mega hubs in Kuala Lumpur and Bangkok, and secondary hubs,” Bo said.
At the closing bell on Friday, Capital A settled down three sen or 3.35% to 86.5 sen, valuing the group at RM3.75 billion.–THE EDGE MALAYSIA
