Eraman retail revenue surges in 2016; spend per passenger posts solid increase

MALAYSIA. Malaysia Airports has revealed a healthy commercial performance for the year ending 31 December 2016; non-aeronautical revenues hit RM1,850.2 million (US$416.2 million), up by +7.6% mainly due to higher retail and other commercial revenue.

Retail division Eraman posted a +9.7% surge in revenues to RM648.1 million (US$145.8 million) at Kuala Lumpur International Airport (KLIA) and low-cost terminal KLIA2. Eraman revenue per passenger climbed by +2% to RM12.31 (US$2.76).

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Eraman’s 2016 performance at Malaysia’s two major airports, KLIA and KLIA2 (Source: Malaysia Airports)

KLIA2 sales climbed by +10.6% year-on-year for the retailer, with KLIA sales rising by +8.6% compared to 2015. Revenue per passenger rose by +7.4% at KLIA2 but fell by -3.7% in the year at KLIA.

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Eraman General Manager Zulhikam Ahmad launches the latest phase of the company’s Shopping Extravaganza campaign; the year-long promotion helped buoy sales during 2016, reported parent company Malaysia Airports

Total retail and F&B sales at the capital’s airports hit RM1,695.8 million (US$381.5 million), up by +13%, with sales per passenger climbing by +5.2%. Combined retail and F&B spend at KLIA2 leapt by +10.7%. This was attributed in part to the return of Chinese travellers in the past year, who are “notably higher spenders”, said Malaysia Airports. The company also noted the contribution from ASEAN region and Middle East passengers across both KLIA and KLIA2.

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On the rise: Retail and F&B sales at KLIA and KLIA2 in 2016

At Istanbul Sabiha Gökcen International, in which Malaysia Airports is a shareholder, duty free spend per passenger (through Setur Duty Free) was €9.53 compared to €8.91 in 2015.

Group passenger traffic hit 118.6 million in the year, up by +5.8% compared to 2015. International passenger volumes reached 52.8 million, up by +6.2%, with domestic at 65.8 million, up by +5.5%.

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At the key locations of KLIA and KLIA2 combined, international traffic hit 37.2 million, up by +7.2% year-on-year.

Malaysia Airports reported RM4.2 billion (US$945 million) in annual revenue, an increase of +7.8%, with EBITDA reaching RM1.7 billion (US$382 million), up by +8.2%.

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