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Malta International Airport p.l.c.
C 12663
Annual Financial Report and Financial Statements
31 December 2024
Malta International Airport p.l.c.
Contents
General Information
2
Directors’ Report
3-14
Statement of Directors’ Responsibilities
15
Corporate Governance – Statement of Compliance
16-28
Remuneration Report
29-32
Income Statements and Statements of Comprehensive Income
33
Statements of Financial Position
34-35
Statements of Changes in Equity
36
Statements of Cash Flows
37-38
Notes to the Financial Statements
39-88
Independent Auditor’s Report
Malta International Airport plc
General Information
Year Ended 31 December 2024
2
Directors:Mr Nikolaus Gretzmacher (Chairman)
Mr Alan Borg (Chief Executive Officer)
Mr Karl Dandler (Chief Financial Officer)
Dr. Cory Greenland
Ms Rita Heiss
Dr. Wolfgang Koeberl
Mr Florian Nowotny
Company secretary:Dr. Louis de Gabriele LL.D.
Registered office:Malta International Airport,
Luqa,
Malta.
Tel. (+356) 2124 9600
Country of incorporation:Malta
Company registration
number:C 12663
Auditor:PricewaterhouseCoopers,
78 Mill Street,
Zone 5,
Central Business District,
Qormi, Malta.
Legal advisors:Camilleri Preziosi Advocates,
Level 2 - Valletta Buildings,
South Street,
Valletta,
Malta.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
3
The directors present their report together with the audited financial statements for the year ended 31 December 2024.
Principal Activities
Malta International Airport p.l.c.’s (“t he Company”) principal activities are the development, operation and management of Malta International Airport, for which the Company has a 65-year concession that came into effect in July 2002.
The Company has three 100% owned operating subsidiaries: Airport Parking Limited, SkyParks Development Limited and SkyParks Business Centre Limited. Airport Parking Limited operates all car parks situated on the land leased to Malta International Airport p.l.c., whilst SkyParks Development Limited and SkyParks Business Centre Limited manage the SkyParks Business Centre building. The Company and these subsidiaries are together referred to as “the Group”.
Malta International Airport p.l.c. also has another 100% owned subsidiary: Kirkop PV Farm Limited, set up with the intention to explore opportunities in the generation of electricity using photovoltaic technologies. Kirkop PV Farm Limited, however, did not trade in 2024.
Review of the Business
Traffic Development
Malta International Airport registered 8,957,451 passenger movements in 2024, hitting a new traffic milestone. This result translates to a notable increase of 15% in traffic over 2023 and was achieved on the back of growth of 14% (10,420,167 seats) in seat capacity. Concurrently, aircraft movements also grew by 14% over 2023, with 58,773 aircraft movements recorded during the year under review.
Throughout 2024, the seat load factor (SLF) averaged 86%, increasing by 1 percentage point from the previous year and becoming the highest annual SLF recorded to date.
The upward trend registered in 2024 was maintained throughout the year, including in the traditionally slower off-peak months, with traffic growing steadily each month compared to 2023. In fact, in the first half of the year alone, the airport registered unprecedented traffic, with a total of 4,065,414 passenger movements recorded. As a result, the five million passenger movement milestone was reached by July 2024, a month earlier than the previous year.
Meanwhile, August was the busiest month of the year under review, with 983,182 passenger movements registered.
Italy, the United Kingdom, Germany, France and Poland were the airport’s most popular markets for 2024. With more than 1.7 million passenger movements registered, the United Kingdom outperformed its record-breaking 2019 volume.
The impressive growth in Polish traffic continued throughout 2024. Growing by 53% over 2023, traffic to and from Poland registered the strongest increase out of the top five markets.
During 2024, seven new routes were launched, while two new airlines – Universal Air and Aer Lingus – started scheduled operations to Malta.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
4
(continued)
2024
2023
+/-
% Change
Passenger Movements
8,957,451
7,803,042
1,154,409
14.8%
Aircraft Movements
58,773
51,353
7,420
14.4%
Seat Capacity
10,420,167
9,155,085
1,265,082
13.8%
Seat Load Factor
86.0%
85.2%
0.8 pp
MTOW (in tonnes)
2,279,556
2,011,402
268,154
13.3%
Cargo and Mail (in tonnes)
23,624
20,644
2,980
14.4%
Q1 2024
Q1 2023
% Change
Q2 2024
Q2 2023
% Change
Passenger M ovements
1,573,712
1,245,525
26.3%
2,491,702
2,188,945
13.8%
Aircraft Movements
10,755
8,825
21.9%
16,367
14,514
12.8%
Seat Capacity
1,930,618
1,535,759
25.7%
2,915,368
2,586,398
12.7%
Seat Load Factor
81.5%
81.1%
0.4 pp
85.5%
84.6%
0.9 pp
MTOW (in tonnes)
425,280
348,466
22.0%
630,291
564,508
11.7%
Cargo and Mail (in tonnes)
5,187
4,948
4.8%
5,791
4,948
17.0%
Q3 2024
Q3 2023
% Change
Q4 2024
Q4 2023
% Change
Passenger Movements
2,831,477
2,539,355
11.5%
2,060,560
1,829,217
12.6%
Aircraft Movements
17,770
15,691
13.2%
13,881
12,323
12.6%
Seat Capacity
3,133,177
2,824,635
10.9%
2,441,004
2,208,293
10.5%
Seat Load Factor
90.4%
89.9%
0.5 pp
84.4%
82.8%
1.6 pp
MTOW (in tonnes)
683,500
610,614
11.9%
540,485
487,814
10.8%
Cargo and Mail (in tonnes)
6,068
4,793
26.6%
6,578
5,956
10.4%
Operational Performance Indicators
Airport Council International’s (ACI) Airport Service Quality (ASQ) survey programme delivers crucial insights on passenger experience ratings, airport comparisons, and changing passenger perceptions and priorities. ASQ research is conducted in airports serving over half of the world’s 6.6 billion annual passengers and sees the participation of almost 400 airports worldwide. Malta International Airport has been participating in ASQ since 2005 and has consistently ranked among the top five airports in Europe within its size category, being awarded the ‘Best Airport in Europe’ title in the 5-15 million passenger category in 2018, 2019, 2020, 2021, 2022, 2023 and 2024.
The ASQ Departures Survey gathers information from passengers prior to boarding to assess their satisfaction throughout the airport departure journey, from check-in to the boarding gates. The analysis of this passenger feedback enables Malta International Airport to continue improving airport services and facilities in line with changing guest expectations, with the aim of increasing the overall satisfaction of guests with the airport experience. Key performance indicators (KPIs), including waiting times at check-in and security, staff courtesy and helpfulness, and terminal cleanliness are measured using a five-point scoring system, with five being the highest score. Malta International Airport’s Overall Satisfaction scores for the four quarters of 2024 are tabulated below. At 4.39, the overall satisfaction score for 2024 remained unchanged from the previous year, despite the record traffic handled by the airport during the year under review.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
5
(continued)
ASQ Scores
2024
2023
+/-
1st Quarter
4.37
4.46
(0.09)
2nd Quarter
4.36
4.35
0.01
3rd Quarter
4.40
4.39
0.01
4th Quarter
4.41
4.34
0.07
Average for the year
4.39
4.39
0.00
In 2023, Malta International Airport applied for Level 4 of ACI’s Customer Experience Accreditation Programme, the only worldwide customer experience accreditation designed specifically for airports. Following an onsite verification visit by ACI in July 2024, MIA was awarded the prestigious ‘Level 4 Airport Customer Experience Accreditation’. This constitutes a significant accomplishment for the whole airport team, particularly since MIA was the second European airport to achieve this milestone.
The Company will continue working towards enhancing the guest experience while seeking to maintain high overall satisfaction scores in the ASQ survey. Additionally, the Company is eyeing the next and final level of ACI’s Customer Experience Accreditation Programme and will be laying the groundwork to eventually progress to Level 5.
In recognition of its resilience, strategic vision and operational excellence, particularly in the areas of financial management and service quality, Malta International Airport was also awarded the ‘Best Airport’ title within the 5–10 million passenger category at the ACI Europe Best Airport Awards 2024, held in July 2024. Malta International Airport secured this achievement, which serves as a testament to the Company’s commitment to delivering an exceptional airport experience, against strong competition from shortlisted peers Brussels Charleroi Airport and Seville Airport.
Infrastructural Investments
The capital expenditure for the reporting period totalled EUR 68.4 million (2023: EUR 44.3 million).
Within the retail and property segment, the extension of the terrace at the La Valette departures lounge was completed during the year under review (2024: EUR 0.7 million). Works on the overhaul of the VIP Terminal also continued apace. While the shell structure was completed in Q3 2024, the finishes and mechanical and electrical installations are at an advanced stage of completion. The new VIP Terminal is envisaged to welcome its first guests in Q2 2025 (2024: EUR 2.8 million).
Enabling works on the construction of Sky Parks Business Centre 2 have been completed and excavation works started in November (2024: EUR 14.2 million). Construction is set to start in 2025. This project will introduce a business hotel on airport grounds, together with further space for offices, retail, and food and beverage outlets. The hotel building is planned to be handed over to the chosen operator by the end of 2025.
The first phase of the Terminal Expansion Project, entailing a 1,550-square-metre westward extension commenced in Q4 2023 (2024: EUR 8.2 million), with works being at an advanced stage of completion. The new Schengen Arrivals route built as part of this project will lead passengers directly into the Baggage Reclaim Area for added convenience. The first phase of the Terminal Expansion Project also saw the installation of a new reclaim belt during the year under review. The project has now been extended to have all existing belts replaced with upgraded models and is expected to be concluded by Q2 2025.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
6
(continued)
Within the Central Screening Area, six new CT scanners and Tray Return Systems have been installed and are in operation, enhancing efficiency by tripling passenger throughput in that area (2024: EUR 2.8 million). Furthermore, a project through which around 70 sliding doors will be replaced commenced in Q4 2024 and is expected to be completed by Q2 2025. These doors will allow the Company to use energy more efficiently while heating or cooling the terminal.
Progress has also been made on the Apron 8 South project (formerly referred to as Apron X). The first phase of the EUR 45 million project became operational in Q3 2024 and can accommodate 4 Code C aircraft (2024: EUR 22.8 million). The second phase of the project is at an advanced stage of completion, with the remaining four stands now expected to become operational by Q2 2025. The construction of ancillary buildings that will service the new apron and offer housing facilities for ground-handling service providers has also gained momentum and is expected to be completed by Q3 2025.
Other ongoing projects include the installation of a new heating, ventilation and air conditioning (HVAC) system within the terminal (2024: EUR 1.1 million), the rehabilitation of aircraft stands and service roads (2024: EUR 4.6 million), the upgrading of airfield substations and other electrical upgrades (2024: EUR 1.1 million) as well as the replacement of the Airfield Ground Lighting (AGL) control room system (2024: EUR 0.9 million).
Further to these projects, the Company kick-started works on the largest photovoltaic farm on airport grounds in Q4 2024. The fifth PV farm will generate around 5.1mln kWh of additional clean energy, significantly more than doubling current capacity and bringing the company a step closer to its net zerotarget (2024: EUR 0.9 million).
Principal Risk and Uncertainties
The Board as a whole, including the Audit Committee members, is responsible for evaluating the nature and extent of the Risk Management Framework, as well as the risk profile that is acceptable to the Board. The Audit Committee periodically reviews the work carried out by the Company’s Risk Management Committee and evaluates the impact that identified risks pose to the Company’s strategic objectives.
The main strategic, corporate and operational risks and uncertainties identified during the year under review are listed below.
Disruption of Critical ICT Systems
The disruption of an airport's ICT critical systems or processes, whether complete or partial, could result in a breakdown of essential communication channels, compromised data integrity, and potential lapses in security protocols. This may lead to operational inefficiencies, hindering the airport's ability to manage flights, process passenger information, and execute security measures effectively. The interconnected nature of modern airport systems amplifies the impact, with failures in hardware, networks, personnel vetting, backups, firewalls, and connectivity potentially causing widespread disruptions, impacting both airport operations and the overall guest experience. Mitigating these risks is crucial to maintaining the reliability and functionality of critical ICT systems in the airport environment.
Continuous monitoring and adaptive strategies are essential to sustain this risk posture and uphold the resilience of the Company’s critical ICT systems against unforeseen challenges. Measures for risk mitigation within Malta International Airport include a robust backup strategy for critical data and systems, a thorough business impact analysis, software-defined networking redundancy, the implementation of redundant hardware, software and network infrastructure, the establishment of comprehensive incident response protocols, regular simulated exercises to test the efficiency of response plans, as well as the regular training of key personnel.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
7
(continued)
Pandemic Outbreak
Malta International Airport has a robust Health and Safety management framework in place. Following the COVID-19 outbreak, tailored emergency response plans as well as protocols enabling effective case management, were implemented to ensure that business continuity could be maintained throughout the crisis.
To safeguard its financial stability and preserve its liquidity, the Company also carries out regular analyses of the potential impact on financial results and going concern. Additionally, the Company maintains a close relationship with financial institutions to strengthen its liquidity position should the need arise.
Long-Term Capacity Constraints
Malta International Airport has recorded strong traffic development over the past years, with post-COVID-19 traffic having now well exceeded 2019 movements. The periods of saturation of terminal resources (check-in, gates, reclaims) during peak operating times have increased significantly, particularly during the course of the summer months, with the Company having to implement measures aimed towards actively mitigating the impact of such peak-driven demand. During the year under review, the European Commission strengthened its resolve to implement stronger and more modernised border controls by introducing the Entry/Exit System (EES) by November 2024. Following concerted pressure from European airports to allow more time to accommodate the required changes, the European Commission has once again postponed EES implementation, allowing also for soft mitigation measures.
The Company must retain its focus on ensuring that the airport capacity remains sufficient to bridge the gap during the terminal development phase. Given the envisaged investment over the next five years in existing and future terminal and airfield infrastructure, it is crucial that such projects are executed in a timely manner and in a cost-effective way. Infrastructure development is key to meeting the strategic objectives of the Company. However, the failure to develop infrastructure wisely and future-oriented towards emerging technology may result in facilities that are capacity-constrained shortly after their inauguration or otherwise susceptible to excessive expenditure and maintenance overheads. In addition, the designs must incorporate elements of sustainable development and a commercial mix that lives up to the guests’ expectations.
To address these concerns, the Company regularly updates its traffic projections using a proven and reliable forecasting model and conducts extensive capacity studies combined with regular scenario analyses as well as the monitoring of external factors and the aviation industry as a whole. At the same time, it is ensured that the setting of financial and operational goals is in line with the Company’s strategy and aligned with the required resources.
Employees
The Group employed an average of 471 employees in 2024, which translates to an increase of 13% over the previous year. This growth in headcount reflected the busiest year of operation ever recorded at Malta International Airport. The total headcount at year-end stood at 480 employees, which included 12 employees working for Airport Parking Limited and six employees working for SkyParks Business Centre. 91.5% of the Group’s employees were employed on a full-time basis, while the remainder were employed on a part-time basis, bringing the full-time equivalent (FTE) figure at year-end to 449 employees. Compared to year-end 2023, the increase in FTE was 11.8%. Female employees accounted for 34% of the Group’s workforce, which is slightly below the 35% recorded in the preceding year.
In 2024, the employee turnover rate for the Group stood at 11.6%, which was slightly lower than in 2023 and the lowest rate recorded since 2019. The Company’s average length of service, on the other hand, dropped from 8.2 to 7.9 years, resulting from the recruitment of 94 employees during the year under review.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
8
(continued)
In 2024, the Company invested EUR 244,067 in training opportunities, with employees benefitting from a total of 16,810 hours of training. This figure does not include the 6,400 hours of physical training undertaken by the firefighting team. The bulk of the training, namely 5,405 hours, was dedicated to firefighting and fire safety awareness. Other training segments that racked up a significant number of hours include aerodrome safety (1,933 hours) and induction training for new employees (1,410 hours). The rest of the training hours, amounting to 8,063, were dedicated to topics ranging from professional skills to health and safety, and service quality to technical skills. The average training hours per employee for 2024 stood at 35 hours.
During the year under review, more than half of the Company’s office workers availed themselves of the opportunity to work from home for up to two days per week, in line with the Company’s Work from Home Policy. The Company Leave Bank, which was set up to assist employees who are going through particularly challenging circumstances and require additional leave, benefitted 15 employees in 2024, an increase from the five employees assisted in 2023.
The following table shows the HR-related indicators:
2024
2023
+/-
% Change
Headcount - 31 December
480
435
45
10.3%
Headcount - Average
471
417
54
12.9%
FTE - 31 December
449
402
47
11.8%
FTE - Average
444
391
53
13.4%
Average age (in years)
39.2
38.7
0.5
1.3%
Length of service (in years)
7.9
8.2
(0.3)
(3.7%)
Share of women in workforce
33.8%
35.4%
-
(1.6pp)
Employee turnover rate
11.6%
11.9%
-
(0.3pp)
Training expenses (EUR)
244,067
269,911
(25,844)
(9.6%)
Reportable accidents
2
5
(3)
(60.0%)
Corporate Responsibility
Malta International Airport retained sustainability at the core of its growth and value-creation strategies, inviting airport stakeholders to partake in the Group’s efforts to operate in a more environmentally and socially responsible manner.
Milestones in the Journey towards Net Zero Status
The publication of the Group’s Net Zero Carbon Plan in 2024 has been an important environmental milestone for Malta International Airport. The plan establishes two interim targets - reaching carbon neutral status by 2025 and reducing emissions by 65% by 2030 - that will support the Group’s journey towards the achievement of net zero carbon status by 2050. A four-million-euro investment in a new PV farm, groundwork for which kicked off last year, is expected to help the Group build on the momentum already achieved towards its net zero goal.
The Company’s existing energy-efficiency initiatives bore encouraging results in 2024. While passenger traffic grew by nearly 15% over the previous year to total 8.96 million movements, the Group’s electricity consumption increased by just 8%. This gathers further significance in light of the decommissioning of one of the airport’s photovoltaic plants for five months to allow for an upgrade, leading to lower clean energy generation.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
9
(continued)
In 2024, Malta International Airport was successful in advancing to Level 3 (Optimisation) of ACI’s Airport Carbon Accreditation programme, having satisfied the requirements related to the measurement of Scope 3 emissions. This included the collection of Scope 3 data from around 110 stakeholders, such as airlines, employees and outlet operators. This data encompasses information about employees’ and stakeholders’ commutes, employees’ business trips, stakeholders’ fuel and electricity consumption, as well as other carbon-emitting activities undertaken by stakeholders, such as the use of liquefied petroleum gas (LPG) and engine test runs. Malta International Airport has been gradually improving its data collection efforts since 2022, aiming to further widen the scope of the data collected in 2025 and beyond.
Employee and Stakeholder Engagement
In addition to being asked for their input in the annual Employee Commute Survey, airport employees were given the opportunity to broaden their knowledge of environmental matters. The annual GREENTalk featured presentations by a guest speaker from the Water Services Corporation and three airport employees, highlighting the importance of using water wisely, precipitation patterns in Malta and the Company’s water stewardship efforts.
The year 2024 saw the start of apiary visits, giving employees the chance to take a closer look at a project that has helped the airport monitor air quality since 2016. Encouraged by the positive feedback received, the Company’s Environmental Working Group plans to extend this initiative into 2025.
The Company’s introduction of environmental criteria in tendering processes during the year under review is a means by which Malta International Airport ensures that its environmental ethos is reflected across its supply chain. Tenderers must now declare how sustainability is managed within their organisation by demonstrating compliance with relevant environmental legislation, sharing their environmental policy, and disclosing their waste management practices, among other requirements.
Supporting Neighbouring Communities and Charitable Causes
During the year under review, the Company’s Corporate Responsibility Committee continued to lead Malta International Airport’s philanthropic efforts, approving donations that amounted to almost EUR 190,000 in 2024.
This sum benefitted several organisations whose causes are closely aligned with the Company’s values, as well as a number of initiatives undertaken within the airport’s neighbouring villages. Malta International Airport prioritises the creation of value in Malta’s southern region, given that this is where its operations have the most significant impact.
In parallel, employees raised EUR 17,000 for charitable causes through a programme of internal initiatives. One such initiative entailed the sale of photovoltaic panels that were dismantled to make way for newer models but were still in working order. Funds raised through these sales went towards the purchase of a wheelchair for a soldier who lost his limbs to a virus.
A Decade of the Malta Airport Foundation
The year 2024 marked a decade since the establishment of the Malta Airport Foundation. The occasion was celebrated with an event and the publication of a souvenir book documenting the Foundation’s projects.
Meanwhile, the Foundation announced the completion of the restoration of the historical Via Sagra found inside the Church of Ta’ Ġieżu in Valletta. Embellishment works inside the Church of Saint Leonard in Kirkop continued apace during 2024, with the Foundation expecting to officially unveil the project in the coming months.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
10
(continued)
To further enhance Valletta’s offering, the Foundation signed an agreement with Heritage Malta in December 2024 to support the third phase of an ongoing restoration project on the Great Siege Bell Memorial located within the lower part of Saint Christopher Bastion.
Financial Performance
Financial Results
The earnings before interest, taxation, depreciation and amortisation (EBITDA) of the Group increased by 15.8% or EUR 11.9 million; from EUR 75.2 million in 2023 to EUR 87.1 million in 2024.
While the net profit for 2023 amounted to EUR 40.3 million, the Group posted a net profit of EUR 46.3 million in 2024, recording an increase of 15% or EUR 6.0 million. The total comprehensive income for 2024 attributable to shareholders of the Company (net of tax) reached EUR 46.3 million.
Revenues
The t otal revenue of the Group amounted to EUR 142.9 million (2023: EUR 120.2 million), translating to an increase of 18.8% or EUR 22.6 million compared to 2023. Aviation-related revenues are the most important income stream of the Group, bolstered by the high demand for air travel. During the year under review, t he a irport segment con tributed a share of 69.4% of total revenues (2023: 68.5%), while revenues from the retail and property segment totalled EUR 43.5 million (2023: EUR 37.6 million). The remaining portion of revenues amounting to EUR 0.3 million originated from other activities and contributed a 0.2% share.
Staff Costs
The staff costs of the Group amounted to EUR 17.2 million in 2024 (2023: EUR 14.3 million), marking an increase of EUR 2.9 million or 20% over 2023. The increase is a result of the growth in headcount required to provide adequate resources to meet operational needs and to continue delivering excellent service to a record number of passengers.
Other Operating Expenses
The other operating expenses of the Group increased by 25.2%, rising from EUR 30.7 million in 2023 to EUR 38.4 million in 2024, mainly due to the growth in passenger movements and an extended maintenance programme for the terminal building as awell as the airfield.
Depreciation and Amortisation
Depreciation and amortisation amounted to EUR 14.8 million (2023: EUR 12.6 million) during the year under review, translating into an increase of EUR 2.2 million compared with the previous year.
Comprehensive Income and Dividends
The financial results of the Group and the Company for the year ended 31 December 2024 are shown in the Statement of Comprehensive Income on page 33. The Group’s t otal comprehensive profit for the year after taxation amounted to EUR 46.3 million (2023: EUR 40.3 million).
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
11
(continued)
Further to the net interim dividend of EUR 0.06 per share (Gross EUR 0.0923) paid in 2024, the Board of Directors is recommending the payment of a final net dividend of EUR 0.12 per share (Gross EUR 0.1846) on all shares settled as at close of business on 14 April 2025, which dividend shall be paid by no later than 31 May 2025.
Financial Position
The profit for the year, together with shareholders’ funds brought forward from the previous year, resulted in shareholders’ funds as at 31 December 2024 of EUR 212.8 million (2023: EUR 190.9 million) for the Group and EUR 210.1 million (2023: EUR 188.6 million) for the Company.
Going Concern
After reviewing the Group and Company’s budget for the next financial year and its long-term plans, the D irectors are of the opinion that at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the Financial Statements.
Financial Risk Management
The financial risks of the Group and the Company identified during the year and their financial risk management objectives are outlined in detail in Note 37 of the Financial Statements.
Financial Key Performance Indicators
Variance
Financial Indicators (EUR mn)
2024
2023
abs.
in %
Total Revenue
142.9
120.2
22.6
18.8%
thereof Aviation Revenue
99.1
82.4
16.8
20.4%
thereof Non-Aviation Revenue
43.7
37.9
5.9
15.5%
EBITDA
87.1
75.2
11.9
15.8%
EBITDA Margin (in %)
60.9%
62.6%
(1.6 pp)
EBIT
72.3
62.7
9.6
15.4%
EBIT Margin (in %)
50.6%
52.1%
(1.5 pp)
Net Profit
46.3
40.3
6.0
15.0%
ROCE (in %)
23.5%
23.5%
0.0 pp
Cash (incl. term deposits) & T reasury B ills
64.9
76.4
(11.5)
(15.0%)
Equity
212.8
190.9
22.0
11.5%
Balance Sheet Total
370.1
330.6
39.5
11.9%
Capital Expenditure
68.4
44.3
24.1
54.5%
Taxes on Income
25.8
21.9
3.9
17.8%
Average Employees (No.)
471
417
54
12.9%
Share Capital
The share capital of the Company is EUR 33,825,000 divided into three classes of shares as follows:
•81,179,990 Ordinary ‘A’ Shares representing approximately 60% of the total issued share capital;
•54,120,000 Ordinary ‘B’ Shares representing 40% of the total issued share capital; and
•10 Ordinary ‘C’ Shares.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
12
(continued)
All shares issued have a nominal value of EUR 0.25 and are fully paid up and allotted.
The Ordinary ‘A’ Shares are admitted to the official list of the Malta Stock Exchange, whilst the Ordinary ‘B’ and Ordinary ‘C’ Shares are not admitted or traded on an exchange.
The Ordinary ‘A’ Shares and Ordinary ‘B’ Shares shall entitle their holders to the same rights, benefits and powers in the Company save for the transferability thereof. The Ordinary ‘A’ Shares shall be freely transferable whilst the Ordinary ‘B’ Shares were non-transferable for a period of fifteen (15) years from 26 July 2002, upon which date they automatically became fully and freely transferable without the need for any formality.
The Ordinary ‘C’ Shares are held by and, in terms of the Memorandum of Association, may only be held by the Government of Malta. It does not carry any right to receive dividends or assets on a winding up or other return of capital but entitles the Government of Malta to appoint members on the National Interest Matters Committee pursuant to Article 58.10 of the Articles of Association of the Company.
Save for the above, there are no other restrictions attached to the shares of the Company.
No changes in the share capital of the Company were made nor did the Company acquire ownership of, or any rights over, any portion of its own share capital.
The following shareholders have an interest in more than 5% of the issued share capital of the Company:
•Malta Mediterranean Link Consortium Ltd
•Government of Malta
•VIE (Malta) Ltd
Directors
Appointment and Replacement of Directors
The Board of Directors of the Company is composed of a maximum of eight (8) directors. Five (5) directors are Non-Executive Directors and a maximum of three (3) directors, amongst whom is the CEO, are executive directors.
Any shareholder holding not less than 20% of the issued share capital of the Company having voting rights is entitled to appoint one director for each 20% shareholding by a letter addressed to the Company. In this respect, Malta Mediterranean Link Consortium Limited is entitled to appoint two (2) Non-Executive Directors and the Government of Malta is entitled to appoint one (1) non-executive director. The remaining Non-Executive Directors are appointed by the shareholders in a general meeting pursuant to the Articles of Association.
Unless appointed for a longer term, a director holds office from one Annual General Meeting to the next and is eligible for re-appointment. The maximum period for which a director may be appointed is a term of three (3) years, following the lapse of which such director shall be eligible for re-appointment.
In terms of the Articles of Association, the CEO of the Company shall occupy one of the executive director positions. The other executive directors to be co-opted to the Board are the Chief Financial Officer an d the Chief Commercial Officer.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
13
(continued)
Powers of Directors
The directors of the Company have all the powers necessary to manage and direct the Company. The Company is empowered to buy back any of its shares, subject to the limitations and restrictions at law and the capital market rules. Subject to the authority of shareholders, to be given at three (3) year intervals, the directors are also empowered to issue further shares in the Company.
Directors
The directors who served during the year under review were:
Director
Title
Director since
Mr Nikolaus Gretzmacher
Chairman & Non-Executive Director
2012
Ms Rita Heiss
Non-Executive Director
2015
Dr. Cory Greenland
Non-Executive Director
2015
Dr. Wolfgang Koeberl
Non-Executive Director
2016
Mr Florian Nowotny
Non-Executive Director
2017
Mr Alan Borg
CEO and Executive Director
2012
Mr Karl Dandler
CFO and Executive Director
2014
In accordance with paragraph 56.1 of the Company’s Articles of Association, all the present directors are to retire at the forthcoming Annual General Meeting. The appointment of the new directors will take place in accordance with paragraphs 55 and 56 of the same Articles of Association at the Annual General Meeting.
Directors’ Interests in Material Contracts
The following directors have declared their interests in the share capital of the Group:
•Mr Nikolaus Gretzmacher a non-beneficial interest 1
•Ms Rita Heiss a non-beneficial interest 2
•Dr Cory Greenland a beneficial interest
No other director has a beneficial or non-beneficial interest in the Company’s share capital.
Auditor
A resolution to reappoint PricewaterhouseCoopers as auditor of the Company will be proposed at the forthcoming Annual General Meeting.
Outlook
Traffic Development
While Airports Council International (ACI) reported that traffic through European airports for 2024 stood at 1.8% above pre-pandemic levels, the aviation industry continues to navigate a challenging landscape.
1 These shares are held by MMLC and VIE Malta Limited, companies of which Mr Gretzmacher is a director.
2 These shares are held by MMLC and VIE Malta Limited, companies of which Ms Heiss is a director.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2024
14
(continued)
Delays in aircraft deliveries, which are expected to stabilise by the end of 2025, have seen airlines struggling to keep pace with the strong demand for air travel. Additionally, certain airlines have been constrained to ground several aircraft due to engine issues, a situation that is expected to linger beyond 2025. In parallel, geopolitical tensions have continued to drive up fuel costs, which are expected to continue rising with the introduction of sustainable aviation fuel (SAF).
Considering these challenges together with the positive developments for 2025, including the start of operations of four new airlines in the second quarter and the extension of certain routes into the shoulder months, the Company expects to close 2025 with 9.3 million passenger movements in 2025. This translates to an increase in traffic of 3.7% over 2024.
Financial Performance
Based on the projected passenger numbers for 2025, the total revenue of the Group for the year is expected to reach EUR 147 million. Projected EBITDA and Net Profit are to be EUR 91 million and EUR 48 million, respectively. The capital expenditure of the Group during the year is expected to reach EUR 70 million.
Signed on behalf of the Company's Board of Directors on 24 February 2025 by Nikolaus Gretzmacher (Chairman), Alan Borg (Chief Executive Officer) and Karl Dandler (Chief Financial Officer) as per the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report 2024.
Malta International Airport p.l.c.
Statement of Directors’ Responsibilities
15
The directors are required by the Companies Act (Cap. 386) to prepare financial statements in accordance with International Financial Reporting Standards as adopted by the EU which give a true and fair view of the state of affairs of the Company and the Group at the end of each financial year, and of the profit or loss of the Company and the Group for the year then ended.
In preparing the financial statements, the directors should:
•select suitable accounting policies and apply them consistently;
•make judgments and estimates that are reasonable; and
•prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the Company and the Group will continue in business as a going concern.
The directors are responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Company and the Group and which enable the directors to ensure that the financial statements comply with the Companies Act (Cap. 386). This responsibility includes designing, implementing and maintaining such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The directors are also responsible for safeguarding the assets of the Company and the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Additionally, the directors are responsible for:
•the preparation and publication of the Annual Financial Report, including the consolidated financial statements and the relevant tagging requirements therein, as required by Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS,
•designing, implementing, and maintaining internal controls relevant to the preparation of the Annual Financial Report that is free from material non-compliance with the requirements of the ESEF RTS, whether due to fraud or error, and consequently, for ensuring the accurate transfer of the information in the Annual Financial Report into a single electronic reporting format.
Statement of responsibility pursuant to the Capital Market Rules issued by MFSA
We confirm that to the best of our knowledge:
a)i n accordance with the Capital Market Rules, the financial statements give a true and fair view of the financial position of the Company and the Group as at 31 December 2024 and of their financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the EU; and
b)i n accordance with the Capital Market Rules, the Directors’ Report includes a fair review of the performance of the business and the financial position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Approved by the Board of directors on 24 February 2025.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
16
Introduction
Pursuant to the Capital Markets Rules issued by the Capital Markets Authority, Malta International Airport p.l.c. (the “Company”) should endeavour to adopt the Code of Principles of Good Corporate Governance contained in Appendix 5.1 to Chapter 5 of the Capital Markets Rules (the “Code”). In terms of Capital Markets Rule 5.94, the Company hereby reports on the extent of its adoption of the principles of the Code for the financial year being reported upon.
The Company acknowledges that the Code does not dictate or prescribe mandatory rules, but recommends principles of good practice. However, the directors strongly believe that such practices are generally in the best interests of the Company and its shareholders and that compliance with the principles of good corporate governance is not only expected by investors but also evidences the directors’ and the Company’s commitment to a high standard of governance.
The Board of Directors (the “Board”) has carried out a review of the Company’s compliance with the Code for the financial year being reported upon, namely the year ended 31 December 2024.
General
The directors believe that good corporate governance is a function of a mix of checks and balances that best suit the Company and its business. Accordingly, whilst there are best practices that can be of general application, the structures that may be required within the context of larger companies are not necessarily and objectively the best structures for companies whose size and/or business dictate otherwise. It is in this context that the directors have adopted a corporate governance framework within the Company that is designed to better suit the Company, its business, scale and complexity whilst still ensuring a robust framework of manual and automated controls.
The Company has a corporate decision-making and supervisory structure that is tailored to suit the Company’s requirements and designed to ensure the existence of a framework of controls within the Company.
In general, the directors believe that the Company has adopted appropriate structures to achieve an adequate level of good corporate governance, together with an adequate system of controls in line with the Company’s requirements.
This corporate governance statement (the “Statement”) will now set out the structures and processes in place within the Company and how these effectively achieve the goals set out in the Code. For this purpose, this Statement will make reference to the pertinent principles of the Code and then set out the manners in which the directors believe that these have been adhered to. Where the Company has not complied with any of the principles of the Code, this Statement will give an explanation for non-compliance.
For the avoidance of doubt, reference in this Statement to compliance with the principles of the Code means compliance with the Code’s main principles, and the Code Provisions.
Compliance with the Code
Principle One: The Board
The directors believe that for the period under review the Company has generally complied with the requirements of this principle and the relative code provisions.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
17
(continued)
The Board is composed of members who are fit and proper to direct the business of the Company with honesty, competence, and integrity. All the members of the Board are fully aware of, and conversant with, the statutory and regulatory requirements connected to the business of the Company. The Board is accountable for its performance and that of its delegates too.
The Board is responsible for determining the Company’s strategic direction and organisational requirements, whilst ensuring that the Company has the appropriate mix of financial and human resources to meet its objectives and improve its performance. Throughout the period under review, the Board provided the necessary leadership in the overall direction of the Company and has adopted prudent and effective systems whereby it obtains timely information from the Chief Executive Officer (the “CEO”) as the head of the Executive Committee to ensure an open dialogue between the CEO and directors at regular intervals and not only at meetings of the Board. The Company has a structure that ensures a mix of Executive and Non-Executive Directors that enables the Board, and particularly the Non-Executive Directors to have direct information about the Company’s performance and business activities from the head of executive management that is also a director on the Board.
Principle Two: Chairman and Chief Executive Officer
In line with the requirements of Principle Two, the Company has segregated the functions of the CEO and the Chairman. Whilst the CEO heads the Executive Committee, the Chairman’s main function is to lead the Board and set its agenda. The Chairman is also responsible to ensure that the Board receives accurate, timely and objective information so that the directors can take sound decisions and effectively monitor the performance of the Company. The Chairman exercises independent judgement and ensures that, during Board meetings, there is effective communication with stakeholders as well as active engagement by all directors for the discussion of complex and/or contentious issues.
The CEO is accountable to the Board of the Company for all business operations. He has the power and authority to appoint the persons to fill in the post of each member of the Executive Committee. He also has the discretion to ask any one or more of such members, from time to time, to address the Board on matters relating to the operations of the Company and its Subsidiaries. The Board, of course, is entitled to call in, at its discretion, any one or more of the executives of the Company.
Principle Three: Composition of the Board
The full maximum complement of the Board, in line with Principle Three is of five (5) Non-Executive Directors and three (3) Executive Directors, a balance that is entrenched in the Company’s Memorandum and Articles of Association, which requires that the CEO is an ex ufficio director together with a maximum of two (2) other senior executives of the Company. The presence of top executives on the Board is designed to ensure that all the Non-Executive Directors have direct access to the individuals who have the prime responsibility for the day-to-day operations and executive management of the Company. Furthermore, the presence of top executives allows for the implementation of policies that allow effective discussion and the availability of all the information necessary for the Board to carry out its function in the best possible manner.
The members of the Board for the year under review were:
Director
Title
Director since
Mr Nikolaus Gretzmacher
Chairman & Non-Executive Director
2012
Ms Rita Heiss
Non-Executive Director
2015
Dr Cory Greenland
Non-Executive Director
2015
Dr Wolfgang Koeberl
Non-Executive Director
2016
Mr Florian Nowotny
Non-Executive Director
2017
Mr Alan Borg
CEO and Executive Director
2012
Mr Karl Dandler
CFO and Executive Director
2014
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
18
(continued)
Pursuant to generally accepted practices, as well as the Company's Articles of Association, the appointment of Non-Executive Directors to the Board is reserved exclusively to the Company's shareholders, except in so far as an appointment is made to fill a vacancy on the Board.
The Board normally meets every eight (8) weeks and as a matter of Board policy, a guideline was established whereby at its first meeting, meetings are scheduled for the full year. Board meetings concentrate mainly on strategy, operational performance, and financial performance. The Board also delegates specific responsibilities to the CEO and the Committees, notably the Executive Committee and the Audit Committee which operate under their respective formal terms of reference. Directors may, in the furtherance of their duties, take independent professional advice on any matter at the Company's expense.
For the purposes of Code Provision 3.2, requiring the Board to report on whether it considers each Non-Executive Director as independent in line with the requirements of that Code Provision, the Board considers each of the Non-Executive Directors as independent within the meaning of the Code.
Save for what is stated hereunder, none of the Non-Executive Directors:
(a)are or have been employed in any capacity by the Company;
(b)have or have had a significant direct or indirect relationship with the Company;
(c)receive significant additional remuneration from the Company;
(d)have close family ties with any of the executive members of the Board;
(e)have served on the Board for more than twelve consecutive years;
(f)have been within the last three years an engagement partner or a member of the audit team of the present or past external auditor of the Company or any Company forming part of the same group; and
(g)have a significant business relationship with the Company.
Mr Nikolaus Gretzmacher, and Ms Rita Heiss (Non-Executive Directors) are currently members of the Board of Directors of Malta Mediterranean Link Consortium Limited, a Company holding 40 per cent of the issued and voting capital of the Company, and, together with Dr Wolfgang Koeberl are also employees of Flughafen Wien AG, the company’s ultimate parent company. Notwithstanding the above relationship the Board still considers Mr Gretzmacher, Ms Heiss and Dr Koeberl as having the required skills, experience and integrity to retain their impartiality in acting as directors of the Company.
In terms of Principle 3.4, each Non-Executive Director has declared in writing to the Board that he/she undertakes:
•to maintain in all circumstances his/her independence of analysis, decision and action;
•not to seek or accept any unreasonable advantages that could be considered as compromising his/her independence; and
•to clearly express his/her opposition in the event that he/she finds that a decision of the Board may harm the Company.
Principle Four: The Responsibilities of the Board
In line with the requirements of Principle Four, it is the Board’s responsibility to ensure a system of accountability, monitoring, strategy formulation and policy development.
The Board believes that this responsibility includes the appropriate delegation of powers to management and the organization of the executive team in a manner that is designed to provide high levels of comfort to the directors that there is proper monitoring and accountability apart from appropriate implementation of policies. The Board delegates specific responsibilities to committees, which operate under their respective formal Terms of Reference.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
19
(continued)
Executive Committee
The Board’s link to the Executive Committee is principally the CEO, together with the other Executive Director on the Board, both of whom are members of the Executive Committee.
The Executive Committee comprises the Executive Directors and the heads of each business unit of the Group. The role of the Executive Committee is to implement the Company`s strategy and policies, through the various departments within the organisation. It also makes recommendations to the Board on matters which are beyond its remit. The Chief Executive Officer chairs the Executive Committee.
The members of the Committee for the period under review were:
•Mr Alan Borg (Chief Executive Officer)
•Mr Karl Dandler (Chief Financial Officer)
•Ing Martin Dalmas (Operations & Business Continuity)
•Mr Ian Maggi (Innovation & Technology)
•Mr Patrick Murgo (Safety & Security, Fire Services & Procurement)
•Ms Tina Lombardi (Commercial Development & Strategy)
•Mr Alex Cardona (Traffic Development, Customer Services & Administration)
•Ing Kevin Alamango (Technical Services)
•Mr Robert Mizzi (Aerodrome Safety & Compliance)
•Ms Justine Baldacchino (Sustainability & Analytics)
•Mr Thomas Abela Gatt (Skyparks Business Centre)3
•Ms Alexia Aquilina (Human Resources)4
•Mr Gayle Lynn Callus (Retail & Property, Marketing & Communications)5
The Executive Committee has met 37 times during the year under review.
3 As from 7 th Feb until 17 th Jul 2024
4 As from 11 th Jul 2024
5 Until 24 th Jan 2024
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
20
(continued)
The Company has also established three cross-functional Committees, the ‘Corporate Responsibility (CR) Committee, the Customer Experience (CE) Committee and the Finance Committee, which meet on a regular basis.
The CR Committee is responsible for the company’s overall CR policy and strategy including the respective formulation and implementation thereof as well as the company’s environmental planning, Airport Carbon Management and supervises the Malta Airport foundation.
The CE Committee systematically deals with how to improve the airport’s Customer Experience with a special focus on customer journeys, touch points, pain points and delighters as well as ASQ benchmarking, customer feedback and ASQ’s Customer Experience Accreditation programme.
The Finance Committee analyses and interprets the company’s financial information on a monthly and quarterly basis with a special focus on current and future income streams, cost drivers and margins to secure a sustainable growth for the Company.
The Chief Executive Officer chairs these cross-functional Committees and all meetings are minuted.
Audit Committee
As part of its corporate governance structures the Company has an Audit Committee in line with the requirements of the Capital Markets Rules. The principal roles of the Audit Committee are in line with the requirements of Capital Markets Rule 5.127 and include the following:
•informing the Board of the Company of the outcome of the statutory audit and explaining how the statutory audit contributed to the integrity of financial reporting and what the role of the audit committee was in that process;
•monitoring the financial reporting process and submitting recommendations or proposals to ensure its integrity;
•monitoring of the effectiveness of the company’s internal quality control and risk management system and, where applicable, its internal audit, regarding the financial reporting of the Issuer, without breaching its independence;
•monitoring of the audit of the annual and consolidated financial statements;
•reviewing additional reports prepared by the statutory auditor/s or audit firm/s;
•reviewing and monitoring the independence of the statutory auditors or the audit firms;
•taking responsibility for the procedure for the selection of statutory auditor/s or audit firm/s; and
•recommending the statutory auditor/s or the audit firm/s to be appointed.
During the year ended 31 December 2024 the Committee consisted of three (3) Non-Executive Directors, namely Mr Florian Nowotny, Ms Rita Heiss, and Dr Cory Greenland. The Committee has the power and authority under its Terms of Reference to summon any person to assist it in the performance of its duties. The directors believe that, during the year under review, Mr Florian Nowotny was independent and competent in accounting and/or auditing in terms of Capital Markets Rule 5.117. Mr Nowotny is considered as competent in accounting and/or auditing in view of his qualifications and experience.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
21
(continued)
When the Audit Committee’s monitoring and review activities reveal cause for concern or scope for improvement, it shall make recommendations to the Board on the action needed to address the issue or make improvements. In the period under review the Audit Committee has held seven (7) meetings.
Company Executives participate in periodic strategic reviews, which include consideration of long-term projections and the revaluation of the business objectives in the short term. Regular budgets and strategic plans are prepared, which are incorporated into a comprehensive strategic plan for the Company. Performance against these plans is actively monitored and reported to the Board using key risk and performance indicators so that corrective measures can be taken to address any deficiencies and to ensure the future sustainability of the Company. These key risk and performance indicators are benchmarked against industry norms so that the Company’s performance can be effectively evaluated.
In view of the number of members of the Board, the directors believe that its size is manageable to be able to address most issues as a Board rather than create sub-committees of the Board that may be more suitable in the case of companies having larger Boards. Indeed, the Board feels that its size and membership allow directors the opportunity to discuss matters directly and that this is a more effective and efficient manner to conduct its business.
The directors, however, are aware that there may be situations that require the delegation to certain committees of certain tasks or assignments and the Board has on occasion composed ad hoc committees for this purpose.
Notwithstanding that the board has established no formal policy on the matter, as part of succession planning, the Board and CEO ensure that the Company implements appropriate schemes to recruit, retain and motivate employees and senior management.
In ensuring compliance with other statutory requirements and with continuing listing obligations, the Board is advised directly, as appropriate, by its appointed broker, legal advisor and external auditors. The Board also ensures that appropriate policies and procedures are in place to assure that the highest standards of corporate conduct are maintained.
Directors are entitled to seek independent professional advice at any time on any aspect of their duties and responsibilities at the Company’s expense.
Principle Five: Board Meetings
The Board believes that it complies fully with the requirements of this principle and the relative Code Provisions, in that it has systems in place to ensure the reasonable notice of meetings of the Board and the circulation of discussion papers in advance of meetings so as to provide adequate time for directors to prepare themselves for such meetings. Minutes are prepared during Board meetings recording faithfully attendance, discussions and resolutions. These minutes are subsequently circulated to all directors as soon as practicable after the meeting.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
22
(continued)
The Board meets as often and as frequently as required in line with the nature and demands of the business of the Company. During the financial year under review the Board held six (6) meetings:
Director
Attendance Board Meetings 2024
Mr Nikolaus Gretzmacher
6/6
Ms Rita Heiss
6/6
Dr Cory Greenland
6/6
Dr Wolfgang Koeberl
3/6
Mr Florian Nowotny
4/6
Mr Alan Borg
6/6
Mr Karl Dandler
6/6
The Chairman ensures that all relevant issues are on the agenda and supported by all available information, whilst encouraging the presentation of views pertinent to the subject matter and giving all directors every opportunity to contribute to relevant issues on the agenda. The agenda on the Board strikes a balance between long-term strategic and short-term performance issues.
Directors attend meetings on frequent and regular basis and dedicate the necessary time and attention to their duties as directors of the Company.
Principle Six: Information and Professional Development
The CEO is appointed by the directors and enjoys the full confidence of the Board. The CEO, although responsible for the selection of the Executive Committee and the recruitment of senior executives, regularly updates the directors on the appointment of senior executives. The Board is satisfied that the current schemes for executive compensation and professional development are designed to render the Company an attractive proposition for the retention of top executives within the Company and to motivate the Executive Committee.
The directors attended comprehensive training throughout the year under review, covering three key areas: Financial Literacy, ESG, and Governance.
The Board intends to organise other professional development sessions for directors and executives designed specifically to enable them to discharge their functions more efficiently and in line with the high standards expected of them.
Directors have access to the advice and services of the Company Secretary who is also the legal counsel to the Board and the Company. As part of succession planning and employee retention, the Board and CEO ensure that the Company implements appropriate schemes to attract, retain and develop the best talent and keep employees engaged and motivated.
Principle Seven: Evaluation of the Board’s Performance
The Board has not appointed a committee for the purpose of undertaking an evaluation of the Board’s performance in accordance with the requirements of Code Provision 7.1 but has conducted an informal review of its own performance over the period under review. Refer to the note under the Section on ‘Non-Compliance with the Code’.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
23
(continued)
Principle Eight: Committees
A.Remuneration Committee
The Company has no performance-related remuneration payable to its Non-Executive Directors and accordingly, as allowed by Code Provision 8.A.2, it has not appointed a Remuneration Committee. Instead, the functions of the Remuneration Committee are vested in the Board, which itself establishes the remuneration policies of the Company. The Non-Executive members of the Board establish the policies and decide on the performance related remuneration of its Executive Directors. Further details on remuneration of the directors are set out in the Remuneration Report for the financial year under review and is in compliance with the requirements of Capital Markets Rule 12.26 and contains the information required by Appendix 12.1 of the Capital Markets Rules.
The Board notes that the organizational set-up of the Company and the size of the Board itself, together with the fact that Non-Executive Directors are not entitled to performance related remuneration, does not, in the opinion of the directors, warrant the establishment of a Remuneration Committee. Remuneration policies have therefore been retained within the remit of the Board itself, and as already stated in the case of the Executive Directors, it is the Non-Executive members of the Board that decide on their performance related remuneration.
The directors believe that certain committees that are suggested in the Code are either not required by the Company, or the functions of a number of committees may efficiently be merged or undertaken by the Board itself. In addition, the Board believes that its size and composition is sufficient for the proper direction and management of the Company and its business and that there would be no value added to the Company and its shareholders to increase the number of Board members simply to be able to have separate committees of the Board – when the same functions can properly be undertaken by the Board itself. The directors will retain the need of such committees under review and as in the past, may appoint ad hoc committees of directors to deal with specific issues as and when these arise.
For the purposes of the provisions of Article 63 of the Company’s Articles of Association, the aggregate emoluments paid to the directors is EUR 701,798 which is within the amount approved by the shareholders of EUR 989,160 for the purpose of that article. The aggregate emoluments paid to the members of the Executive Committee excluding executive directors amount to EUR 855,240.
B.Nomination Committee
The Board believes that the main principle has been duly complied with, in that it is the Articles of Association themselves that establish a formal and transparent procedure for the appointment of directors. The Company has, however, not established a Nominations Committee as suggested by the Code.
Principle Nine: Relations with Shareholders and with the Market and Principle Ten: Institutional Shareholders
The Board serves the legitimate interests of the Company, accounts to shareholders fully and ensures that the Company communicates with the market effectively through a number of Company announcements, informing the market of significant events happening within the Company.
The Company also communicates with its shareholders through the Annual General Meeting (AGM), where the Board communicates directly with shareholders on the performance of the Company over the last financial year and informs shareholders of the challenges that lie ahead.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
24
(continued)
Business at the Company's AGM will cover the approval of the Annual Report and the audited Financial Statements, the declaration of a dividend, if any, the election of directors, the determination of the maximum aggregate emoluments that may be paid to directors, the appointment of auditors and the authorisation of the directors to set the auditors' remuneration. Any other matter that may be placed by the directors before the AGM will be dealt with as “Special Business”.
Apart from the AGM, the Company has continued to communicate with its shareholders and the market by way of the Annual Report and Financial Statements, by publishing its results on a six-monthly basis during the year and through the directors’ statements, which are also published on a six-monthly basis, as well as the publication of results for each of quarter 1 and quarter 3 in a financial year. Generally, the company also communicates with the market through Company announcements to the market in general. Regular meetings are carried out between Malta International Airport plc and Malta Association of Small Shareholders (MASS) to discuss matters of mutual interest.
The Company recognises the importance of maintaining a dialogue with the market to ensure that its strategies and performance are well understood. The Company's website (www.maltairport.com) also contains information about the Company and its business and is a source of further information to the market.
The Company’s Articles of Association allow minority shareholders to call special meetings on matters of importance to the Company, provided that the minimum threshold of ownership established in the Articles of Association is met.
Principle Eleven: Conflicts of Interest
The Board has established procedures on how conflicts are to be handled, if and when they arise. A director having a personal conflict on any matter is bound to inform the other members of the Board of such a conflict whether it is an actual, potential or a perceived conflict. It is then the other members of the Board that would decide on whether there exists such a conflict, actual or potential. By virtue of the Memorandum and Articles of Association, in the event that, in the opinion of the Board such a conflict exists, then the conflicted director is invited to leave the meeting when it proceeds to the vote, if any, on the matter concerned. As a matter of practice, discussions of such matters are normally conducted in the absence of the conflicted director. The Board feels that this is a procedure that achieves compliance with both the letter and the rationale of principle eleven.
Commercial relationships between the Company and other companies may be related by way of common directors and shareholders (“Related Party Transactions”). Contracts are entered into in the ordinary course of business with shareholders and other parties in which the directors have a beneficial interest. Terms and conditions of contracts negotiated with related parties are reviewed by the Company’s Audit Committee. Full disclosure of Related Party Transactions entered into during the financial year under review is made in Note 33 to the Financial Statements.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
25
(continued)
The following directors have declared their interests in the share capital of the Company:
•Nikolaus Gretzmacher a non-beneficial interest 6
•Rita Heiss a non-beneficial interest 7
•Cory Greenland a beneficial interest
No other director has a beneficial or non-beneficial interest in the Company’s share capital.
Principle Twelve: Corporate Social Responsibility
The directors are committed to high standards of Corporate Responsibility specifically in the social, economic and environmental fields both internally and externally. This is being done for the benefit of its key stakeholders which include its shareholders, employees, customers as well as the local community at large.
6 These shares are held by MMLC and VIE (Malta) Limited, companies of which Mr Gretzmacher is a director.
7 These shares are held by MMLC and VIE (Malta) Limited, companies of which Ms Heiss is a director.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
26
(continued)
Non-Compliance with Code Provisions
The directors set out below the code provisions with which they do not comply and a careful explanation as to the reasons for such non-compliance:
Code Provision
Explanation
2.1
Whilst the Company has segregated the functions of the Chairman and the CEO, in that the two posts are occupied by different persons, the division of responsibilities between them has not been established in writing, although there is significant experience and practice that determines the two roles.
4.2
The Board has not formally developed a succession policy for the future composition of the Board of Directors as recommended by Code Provision 4.2.7. In practice, however, the Board and CEO are actively engaged in succession planning and in ensuring that appropriate schemes to recruit, retain and motivate employees and senior management are in place.
7.1
The Board believes that the size of the Company and the Board itself does not warrant the establishment of a committee specifically for the purpose of carrying out a performance evaluation of its role. Whilst the requirement under Code Provision 7.1 might be useful in the context of larger companies having a more complex set-up and a larger Board, the size of the Board is such that it should enable it to evaluate its own performance without the requirement of setting up an ad hoc committee for this purpose. The Board shall retain this matter under review over the coming year.
Having conducted an informal review of its own performance over the period under review it is the Board’s view that all members of the Board, individually and collectively, have contributed in line with the required levels of diligence and skill. In addition, the Board believes that its current composition endows the Board with a cross-section of skills and experience, not only with respect to the specific business of the Company, but also in a wider range of business areas and skills. This process was conducted by the Board itself rather than by a Committee chaired by a Non-Executive Director as required by the Code.
8B
The Board has not appointed a Nominations Committee in line with Code Provision 8B, particularly in the light of the specific manner in which the Articles of Association require that Non-Executive Directors be appointed by a shareholding qualification to the Board. The Executive Directors are, in accordance with the Articles, appointed by the Non-Executive Directors after their appointment, as aforesaid. The Board believes that the current Articles of Association do not allow the Board itself to make any recommendations to the shareholders for appointments of directors and that if this function were to be undertaken by the Board itself or a Nominations Committee, they would only be able to make a non-binding recommendation to the shareholders having the necessary qualification to appoint directors pursuant to the Articles of Association.
The Board intends to keep under review the utility and possible advantages of having a Nominations Committee and following an evaluation may, if the need arises, make recommendations to the shareholders for a change to the Articles of Association.
9.3
The Memorandum and Articles of Association does not provide any mechanism for the resolution of conflicts between shareholders or any process that would trigger arbitration in these instances. This is mitigated by ongoing open dialogue between executive management and Non-Executive Directors of the Company, to ensure that such conflicts do not arise.
9.4
The Company does not have a policy in place to allow minority shareholders to present an issue to the Board.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
27
(continued)
Internal Control
The Board is ultimately responsible for the Company's system of internal controls and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate risk to achieve business objectives, and can provide only reasonable, and not absolute, assurance against normal business risks or loss.
Through the Audit Committee, the Board reviews the effectiveness of the Company's system of internal controls, which are monitored by the Internal Auditors on a regular basis.
The key features of the Company’s system of internal control are as follows:
Organisation
The Company operates through the CEO and Executive Committee with clear reporting lines and delegation of powers.
Control Environment
The Company is committed to standards of business ethics that emulate best practice and seeks to maintain these standards across all of its operations. Company policies and employee procedures are in place for the reporting and resolution of improper activities.
The Company has an appropriate organisational structure for planning, executing, controlling, and monitoring business operations in order to achieve Company objectives.
Risk Identification
Company management is responsible for the identification and evaluation of key risks applicable to their respective areas of business. A Risk Management Committee serve as a primary champion of risk management at a strategic and operational level to ensure that a sound system is in place that identifies, assesses, manages, and monitors risk. In addition, through regular checks the internal auditors test the Company’s internal control systems and processes and make recommendations to management and the audit committee on any deficiency in such systems.
General Meetings
The general meeting is the highest decision-making body of the Company and is regulated by the Company’s Articles of Association. All shareholders registered on the register of members of the Company on a particular record date are entitled to attend and vote at general meetings. A general meeting is called by twenty-one (21) days’ notice.
At an Annual General Meeting what is termed as “ordinary business” is transacted, namely, the declaration of a dividend, the consideration of the accounts, balance sheets and the reports of the directors and the auditors, the election of directors, the appointment of auditors and the fixing of remuneration of directors and auditors. Other business which may be transacted at a general meeting (including at the Annual General Meeting) will be dealt with as “Special Business”.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2024
28
(continued)
Voting at any general meeting takes place by a show of hands or a poll where this is demanded. Subject to any rights or restrictions for the time being attached to any class or classes of shares, on a show of hands each shareholder is entitled to one vote and on a poll each shareholder is entitled to one vote for each share carrying voting rights of which he is a holder. Shareholders who cannot participate in the general meeting may appoint a proxy by written or electronic notification to the Company. Appointed proxy holders enjoy the same rights to participate in the general meeting as those to which the shareholder they represent is entitled.
Every shareholder represented in person or by proxy is entitled to ask questions which are pertinent and related to the items on the agenda of the general meeting and to have such questions answered by the directors or such persons as the directors may delegate for such purpose.
The directors’ statement of responsibilities for preparing the Financial Statements is set out on page 15.
The information required by:
(a)Capital Markets Rule 5.97.5 is found in the Directors’ Report;
(b)Capital Markets Rule 12.26 and Appendix 12.1 are found in the Remuneration Report.
Approved by the Board of Directors on 24 February 2025.
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2024
29
This Report on the remuneration of Malta International Airport plc’s (the “Company” or “MIA”) B oard of D irectors, including the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), has been drawn up in compliance with the requirements of Chapter 12 of the Captital Markets Rules and contains information required by the provisions of Appendix 12.1 of the Capital Markets Rules.
The Company’s remuneration of its B oard of D irectors and executive management is based on the R emuneration P olicy adopted and approved by shareholders at the annual general meeting of 11 November 2020. Th is policy may be viewed on the Company’s website at https://www.maltairport.com/corporate/investors/publications/.
The Remuneration Policy
The Company’s R emuneration P olicy determines the basis for remuneration of all members of the B oard of D irectors of the Company. It defines the principles and guidelines that apply to both fixed and variable remuneration, including all bonuses and benefits, which can be awarded to directors and, in the case of variable remuneration, indicate the relative proportion between fixed and variable components.
The Company’s R emuneration P olicy is intended as a measure to attract and retain suitable candidates to serve as directors and to provide the Company with the appropriate skills, technical knowledge, experience, and expertise both for the determination of policies and strategies of the Company as well as the supervisory role of the B oard.
The overall remuneration of the B oard distinguishes between the remuneration of the Non-Executive Directors and executive directors. In the case of the Non-Executive Directors, including the C hairman, the only component of remuneration is the fixed honorarium received by the Non-Executive Directors, whilst in the case of the executive directors the remuneration consists of two components:
•The basic salary for the role as executive, and;
•A bonus linked to individual performance and the performance of the Company.
The decision-making process with respect to remuneration
The aggregate emoluments that may be paid to the directors, including the executive directors, is decided upon by the shareholders in general meeting following a recommendation made to shareholders by the B oard.
The Board then decides on the remuneration of the Chairman and the other Non-Executive Directors consisting of a fixed honorarium to each director. The Board also establishes and approves the remuneration of the CEO and CFO with respect to their executive roles within the Company.
Key principles of remuneration
The B oard of D irectors of the Company consists of seven (7) individuals. Five (5) are Non-Executive Directors and two (2) are executive directors, including the CEO.
The aggregate remuneration approved by shareholders for the financial year ended 31 December 2024 was set at EUR 989,160. This includes components of remuneration of both non-executive and executive directors.
I n accordance with Capital Markets Rule 12.26 transposing the requirements of the new EU Shareholders’ Rights Directive (2019), the Remuneration Policy was approved by the shareholders at the annual general meeting 11 November 2020.
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2024
30
Accordingly, this is the fifth year that the Company is publishing a R emuneration S tatement in line with the R emuneration P olicy adopted by shareholders at the AGM 11 November 2020.The comparable figures refer to the financial years 2023, 2022, 2021 and 2020 for comparability.
The Chairman and the Non-Executive Directors
Fixed Component
The Board believes that, in line with local practice, the fixed honorarium for Non-Executive Directors is the principal component that compensates directors for their contribution as members of the B oard. The Chairman’s honorarium reflects the role as the most senior non-executive director on the B oard and as the person responsible, amongst others, for chairing B oard meetings and co-ordinating B oard assignments.
Non-Executive Directors who are also delegated to sit on a sub-committee of the B oard or otherwise chair such a sub-committee, are paid additional fixed honoraria for each such assignment.
None of the directors have service contracts with the Company and each non-executive director serves from one annual general meeting to the next, when the appointment of directors is conducted at the annual general meeting. Accordingly, none of the Non-Executive Directors are entitled to any compensation if they are removed from office. Such removal would require an ordinary resolution of the shareholders at a general meeting.
The d irectors are entitled to be paid travelling and other reasonable expenses incurred by them in the performance of their duties as directors. The Company does not remunerate the Chairman or the other Non-Executive Directors in any other manner, nor does it provide any loans or other guarantees to them.
Variable Component
The Chairman and Non-Executive Directors of the Company do not receive any variable component of remuneration.
Table 1 shows the overall remuneration of the C hairman and Non-Executive Directors for the financial years ended 31 December 2024, 2023, 2022, 2021 and 2020.
Table 1: Remuneration of the Chairman and Non-Executive Directors
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2024
31
Due to the COVID-19 crisis and the material adverse impact which this had on the Company the Non-Executive Directors offered to have their remuneration reduced by 30% between April and July 2020 and again by 15% between February and April 2021. These reductions in remuneration are shown in Table 1. Effective 1 st January 2022 the remuneration for a Non-Executive Director and a Non-Executive Director and Committee Member was increased from Euro 9,318 to Euro 13,000 and from Euro 11,647 to 16,300 respectively, whereas the remuneration for the Chairman remained unchanged. The last review of the remuneration of Non-Executive Directors took place in 2005. Effective 1 st January 2023 and 1 st January 2024 the remuneration for a Non-Executive Director and a Non-Executive Director and Committee Member was increased based on the Retail Price Index.
Executive Directors
The Company has two executives that are appointed members of the B oard. The executive directors are the CEO and the CFO, both of whom have service contracts with the Company of a definite duration, which entitle them to a fixed salary.
Fixed Remuneration – Salary
The CEO was entitled to receive a gross salary for the financial year ended 31 December 2024 of EUR 253,667, (2023: EUR 206,969; 2022: EUR 20 6,866; 2021: EUR 20 1,210; 2020: EUR 20 0,794). During 2020, due to the events occasioned by the COVID-19 crisis and the material adverse impact which th is had on the Company, the CEO offered to have his salary reduced by 30% between April and July 2020. During 2021, due to the ongoing COVID-19 crisis the CEO offered again a salary reduction of 15% between February and April 2021, and consequently the remuneration received for the year 2021 was of EUR 193,696 (2020: EUR 180,766). The CEO also receives the following benefits: Insurance (Health-Private Hospital Scheme, Accident & Disability Insurance, and D irectors & O fficers’ Insurance), a Company c ar and a f ully expensed mobile phone service.
The CFO was entitled to receive a gross salary for the financial year ended 31 December 2024 of EUR 193,179; (2023: EUR 173,179; 2022: EUR 161,357; 2021: EUR 157,054; 2020: EUR 156,963). During 2020, due to the events caused by the COVID-19 crisis and the material adverse impact which this had on the Company, the CFO offered to have his salary reduced by 30% between April and July 2020. During 2021, due to the then ongoing C OVID-19 crisis the CFO again offered a salary reduction of 15% between February and April 2021, and consequently the remuneration received for the year 202 1 was of EUR 151,184 (2020: EUR 141,318). The CFO also receives the following additional benefits: Insurance (Health-Private Hospital Scheme, Accident & Disability Insurance, and D irectors & O fficers’ Insurance), a Company c ar and a f ully expensed mobile phone service.
Variable Remuneration – Bonus
Both the CEO and the CFO are entitled to a bonus scheme which is linked to the performance of the Company and the ir ind ividual performance over the course of the financial year. The Chairman sets targets at the beginning of the year to be reached by each executive, and then assess es the performance of each executive against the benchmarks set at the beginning of each year and awards the bonus accordingly. The variable component of the e xecutive d irectors’ remuneration is based on a balance scoring system which includes both financial and non-financial Key Performance Indicators (KPIs) and targets. The Chairman has full discretion in evaluating the performance and attainment of such KPIs and targets.
In the year 2024, the CEO received a bonus of EUR 103,184, (2023: EUR 142,927; 2022: EUR 100,186; 2021: EUR 50,070; 2020: EUR 98,844), whilst the CFO received a bonus of EUR 51,800, (2023: EUR 48,253 2022: EUR 46,963; 2021: EUR 23,468; 2020: EUR 46,316), both in respect of the year 2023.
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2024
32
In terms of the requirements within Appendix 12.1 of the Capital Market Rules, the annual change of the average remuneration on a full-time equivalent basis of employees other than directors was 5.8% (2024 vs 2023), 15.0% (2023 vs 2022), 1.7% (2022 vs 2021) and 3.8% (2021 vs 2020). In relation to the performance of the Company we refer to page 11 of the Directors’ Report: ‘Financial Key Performance Indicators’.
The foregoing Remuneration Statement is being put forward to an advisory vote of the 2024 AGM in accordance with the requirements of the MFSA Capital Markets Rule 12.26 L.
The contents of this remuneration report have been checked by the auditors as required by Capital Markets Rule 12.26N and their report is appended herewith.
Approved by the Board of directors on 24 February 2025.
Malta International Airport p.l.c.
Income Statements and Statements of Comprehensive Income
Year Ended 31 December 2024
33
Income Statements

|  |  |  | The Group |  | The Company
(in EUR) |  | Notes |  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenue |  | 6 |  | 142,869,457 |  | 120,247,948 |  | 137,965,009 |  | 115,378,805
Staff costs |  | 11 |  | (17,198,709) |  | (14,327,716) |  | (16,681,645) |  | (13,997,077)
Other operating expenses |  | 9 |  | (38,386,882) |  | (30,670,557) |  | (37,449,896) |  | (29,757,301)
Impairment losses on financial assets |  | 20 |  | (209,814) |  | (26,701) |  | (326,472) |  | (29,256)
Depreciation |  | 14/15 |  | (14,793,334) |  | (12,567,502) |  | (12,863,469) |  | (10,697,872)
Release of deferred income arising on the sale of terminal buildings upon privatisation |  | 22 |  | 283,659 |  | 283,603 |  | 283,659 |  | 283,603
Investment income |  | 7 |  | 1,772,097 |  | 1,481,698 |  | 2,485,395 |  | 2,915,167
Finance cost |  | 8 |  | (2,149,107) |  | (2,172,154) |  | (2,149,107) |  | (2,172,154)
Profit before tax |  |  |  | 72,187,367 |  | 62,248,619 |  | 71,263,474 |  | 61,923,915
Income tax expense |  | 12 |  | (25,848,217) |  | (21,944,766) |  | (25,443,911) |  | (21,820,838)
Profit for the year attributable to the ordinary equity holders of the Company, net of tax |  |  |  | 46,339,150 |  | 40,303,853 |  | 45,819,563 |  | 40,103,077
Earnings per share attributable to the ordinary equity holders of the Group |  | 29 |  | 0.342 |  | 0.298 |  | - |  | -

Statements of Comprehensive Income

|  | The Group | The Company
(in EUR) | Notes | 2024 | 2023 | 2024 | 2023
Profit for the year attributable to the ordinary equity holders of the Company, net of tax |  | 46,339,150 | 40,303,853 | 45,819,563 | 40,103,077
Items that will not be reclassified subsequently to profit or loss: |  |  |  |  |
Actuarial gain/(loss) on defined benefit pension plans | 23/24 | 6,985 | (36,757) | 6,985 | (36,757)
Deferred tax (credit)/debit | 18 | (2,445) | 12,865 | (2,445) | 12,865
Other comprehensive income for the year attributable to the ordinary equity holders of the Company, net of tax |  | 4,540 | (23,892) | 4,540 | (23,892)
Total comprehensive income for the year attributable to the ordinary equity holders of the Company, net of |  |  |  |  |
tax |  | 46,343,690 | 40,279,961 | 45,824,103 | 40,079,185

Malta International Airport p.l.c.
Statements of Financial Position
As at 31 December 2024
34

|  | The Group |  | The Company
(in EUR) | Notes | 2024 |  | 2023 |  | 2024 |  | 2023
Assets |  |  |  |  |  |  |  |
Property, plant and equipment | 14 | 241,469,362 |  | 202,120,085 |  | 227,076,303 |  | 187,265,334
Investment property | 15 | 29,192,762 |  | 15,529,126 |  | 299,646 |  | 306,615
Investment in subsidiaries | 16 | - |  | - |  | 2,004,800 |  | 2,004,800
Loans receivable | 17 | - |  | - |  | 35,054,972 |  | 22,742,598
Other receivables | 20 | 1,871,084 |  | 1,900,124 |  | 2,021,223 |  | 1,974,970
Deferred tax assets | 18 | 4,960,485 |  | 5,546,733 |  | 5,031,654 |  | 5,346,063
Non-current assets |  | 277,493,693 |  | 225,096,068 |  | 271,488,598 |  | 219,640,380
Inventories | 19 | 1,557,530 |  | 1,280,119 |  | 1,557,530 |  | 1,280,119
Loans receivable | 17 | - |  | - |  | 2,290,720 |  | 1,937,663
Trade and other receivables | 20 | 26,143,670 |  | 27,857,390 |  | 29,048,530 |  | 29,859,224
Short-term Treasury Bills | 26 | - |  | 14,699,519 |  | - |  | 14,699,519
Term deposits | 27 | 45,000,000 |  | 37,000,000 |  | 45,000,000 |  | 37,000,000
Cash and cash equivalents | 28 | 19,914,918 |  | 24,674,829 |  | 18,585,279 |  | 21,759,733
Current assets |  | 92,616,118 |  | 105,511,857 |  | 96,482,059 |  | 106,536,258
Total Assets |  | 370,109,811 |  | 330,607,925 |  | 367,970,657 |  | 326,176,638

Malta International Airport p.l.c.
Statements of Financial Position
As at 31 December 2024
35
(continued)
The financial statements on pages 33 to 88 were approved and authorised for issue by the Board of Directors on 24 February 2025. The financial statements were signed on behalf of the Company’s Board of Directors by Nikolaus Gretzmacher (Chairman), Alan Borg (Chief Executive Officer) and Karl Dandler (Chief Financial Officer) as per the Directors’ Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report 2024.

|  | The Group |  | The Company
(in EUR) | Notes | 2024 |  | 2023 |  | 2024 | 2023
Equity and Liabilities |  |  |  |  |  |  |
Equity attributable to ordinary equity holders of the Company |  |  |  |  |  |  |
Share capital | 25 | 33,825,000 |  | 33,825,000 |  | 33,825,000 | 33,825,000
Retained earnings |  | 179,015,978 |  | 157,026,288 |  | 176,267,954 | 154,797,850
Total Equity |  | 212,840,978 |  | 190,851,288 |  | 210,092,954 | 188,622,850
Lease liability | 33 | 54,719,378 |  | 54,374,185 |  | 54,719,378 | 54,374,185
Deferred income | 22 | 4,725,128 |  | 5,049,058 |  | 4,725,128 | 5,049,058
Other payables | 21 | 5,723,159 |  | 1,957,908 |  | 5,318,545 | 1,770,277
Employee benefit obligations | 23 | 2,689,699 |  | 2,890,265 |  | 2,689,699 | 2,890,265
Provision for MIA benefit fund | 24 | 307,551 |  | 264,827 |  | 307,551 | 264,827
Non-current liabilities |  | 68,164,915 |  | 64,536,243 |  | 67,760,301 | 64,348,612
Trade and other payables | 21 | 66,570,705 |  | 55,803,964 |  | 67,435,139 | 53,712,808
Current tax liabilities |  | 22,533,213 |  | 19,416,430 |  | 22,682,263 | 19,492,368
Current liabilities |  | 89,103,918 |  | 75,220,394 |  | 90,117,402 | 73,205,176
Total Liabilities |  | 157,268,833 |  | 139,756,637 |  | 157,877,703 | 137,553,788
Total Equity and Liabilities |  | 370,109,811 |  | 330,607,925 |  | 367,970,657 | 326,176,638

Malta International Airport p.l.c.
Statements of Changes in Equity
Year Ended 31 December 2024
36
The Group
Equity attributable to ordinary equity holders of the Company
(in EUR)
Share
Retained
capital
earnings
Total
Balance at 1 January 20 23
33,825,000
137,041,327
170,866,327
Profit for the year
-
40,303,853
40,303,853
Other comprehensive income
-
(23,892)
(23,892)
Total comprehensive income for the year
-
40,279,961
40,279,961
Transactions with owners of the company:
Dividends (Note 13)
-
(20,295,000)
(20,295,000)
Balance at 31 December 20 23
33,825,000
157,026,288
190,851,288

Balance at 1 January 2024 | 33,825,000 | 157,026,288 | 190,851,288
Profit for the year | - | 46,339,150 | 46,339,150
Other comprehensive income | - | 4,540 | 4,540
Total comprehensive income for the year | - | 46,343,690 | 46,343,690
Transactions with owners of the company: |  |  |
Dividends (Note 13) | - | (24,354,000) | (24,354,000)
Balance at 31 December 2024 | 33,825,000 | 179,015,978 | 212,840,978

The Company
Equity attributable to ordinary equity holders of the Company
(in EUR)
Share
Retained
capital
earnings
Total
Balance at 1 January 20 23
33,825,000
135,013,665
168,838,665
Profit for the year
-
40,103,077
40,103,077
Other comprehensive income
-
(23,892)
(23,892)
Total comprehensive income for the year
-
40,079,185
40,079,185
Transactions with owners of the company:
Dividends (Note 13)
-
(20,295,000)
(20,295,000)
Balance at 31 December 20 23
33,825,000
154,797,850
1 88,622,850
Balance at 1 January 2024
33,825,000
154,797,850
188,622,850
Profit for the year
-
45,819,563
45,819,563
Other comprehensive income
-
4,540
4,540
Total comprehensive income for the year
-
45,824,103
45,824,103
Transactions with owners of the company:
Dividends (Note 13)
-
(24,354,000)
(24,354,000)
Balance at 31 December 2024
33,825,000
176,267,953
210,092,953
Malta International Airport p.l.c.
Statements of Cash Flows
Year Ended 31 December 2024
37
The Group
The Company
(in EUR)
Notes
2024
2023
2024
2023
Cash flows from operating activities
Profit before tax
72,187,367
62,248,619
71,263,474
61,923,915
Adjustments for:
Depreciation
14/15
14,793,334
12,567,502
12,863,469
10,697,872
Investment income
7
(1,772,097)
(1,481,698)
(2,485,395)
(2,915,167)
Finance cost
8
2,157,881
2,144,381
2,157,881
2,144,381
Loss on disposal of PPE
595,205
-
595,205
-
Release of deferred income arising on the sale of terminal buildings upon privatisation
22
(283,659)
(283,603)
(283,659)
(283,603)
Amortisation of grants
22
(40,255)
(40,255)
(40,255)
(40,255)
Provision for employee benefit obligations
23
53,513
93,510
53,513
93,510
Provision for MIA benefit plan
24
47,187
(93,703)
47,187
(93,703)
Provision for impairment of trade receivables
20
209,814
26,701
326,472
29,255
87,948,290
75,181,454
84,497,892
71,556,205
Working capital movements:
Movement in inventories
19
(277,411)
(117,717)
(277,411)
(117,717)
Movement in trade and other receivables
20
1,535,626
(5,163,190)
1,153,947
(3,010,016)
Movement in trade and other payables
21
8,597,147
2,200,369
10,333,848
1,324,544
Cash flows from operations
97,803,652
72,100,916
95,708,276
69,753,016
Lease interest paid
33
(1,812,688)
(1,812,688)
(1,812,688)
(1,812,688)
Income taxes paid
(22,147,631)
(4,419,086)
(21,942,052)
(4,159,913)
(Payments)/Receipts of
deposit to/from tenants
(6,400)
(293,600)
6,400
(293,600)
Retirement benefit paid
23
(251,557)
(204,960)
(251,557)
(204,960)
Net cash flows from operating activities
73,585,376
65,370,582
71,708,379
63,281,855
Malta International Airport p.l.c.
Statements of Cash Flows
Year Ended 31 December 2024
38
(continued)

|  | The Group | The Company
| Notes | 2024 | 2023 | 2024 | 2023
Cash flows from investing activities |  |  |  |  |
Purchase of PPE | 14 | (46,977,427) | (37,747,232) | (46,332,340) | (37,589,808)
Additions to investment property | 15 | (15,482,793) | (223,626) | - | -
Investments in short-term treasury bills | 26 | 14,699,519 | 10,089,919 | 14,699,519 | 10,089,919
Investments in term deposits | 27 | (8,000,000) | (17,500,000) | (8,000,000) | (17,500,000)
Payments for intracompany loans | 17 | - | - | (14,603,094) | -
Receipts from intracompany loans | 17 | - | - | 1,937,663 | 3,790,720
Interest received | 7 | 1,769,414 | 560,144 | 1,769,419 | 560,144
Net cash flows used in investing activities |  | (53,991,287) | (44,820,795) | (50,528,833) | (40,649,025)
Cash flows from financing activities |  |  |  |  |
Dividends paid | 13 | (24,354,000) | (20,295,000) | (24,354,000) | (20,295,000)
Net cash flows used in financing activities |  | (24,354,000) | (20,295,000) | (24,354,000) | (20,295,000)
Net movement in cash and cash equivalents |  | (4,759,911) | 254,787 | (3,174,454) | 2,337,830
Cash and cash equivalents at the beginning of the year |  | 24,674,829 | 24,420,042 | 21,759,733 | 19,421,903
Cash and cash equivalents at the end of the year | 28 | 19,914,918 | 24,674,829 | 18,585,279 | 21,759,733

Net Debt Reconciliation
All the movements in the Group’s and the Company’s net debt (Lease liability net of cash and cash equivalents)
related only to cash flow movements and are disclosed as part of the operating activities in the Statements of Cash Flows above (refer to Note 33).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
39
1. Reporting entity
The Company is a public limited liability company whose shares are publicly listed and traded on the Malta Stock Exchange. The Company’s registration number is C12663, the country of incorporation is Malta and the Company’s registered office is Malta International Airport, Luqa, Malta.
The principal activities of the Company are the development, operation and management of Malta’s airport. On 11 February 2008, the Company set up a wholly owned subsidiary, Sky Parks Limited, to take over the operations of the car park business. The name of this subsidiary was changed to Airport Parking Limited on 27 October 2009. Another subsidiary, Sky Parks Development Limited, was set up by the Company on 29 October 2009. The main activity of Sky Parks Development Limited is to manage real estate projects within the land which is currently under the management of the Group. Another subsidiary Sky Parks Business Centre Limited was set up by the Company on 26 April 2012. The principal activity of the subsidiary is to operate the Business Centre within the limits of the airport. On 20 June 2013, the Company set up another wholly owned subsidiary, Kirkop PV Farm Limited. The main activity of this company is to explore opportunities in the generation of electricity using photovoltaic technologies.
The Company and the subsidiaries are together referred to as ‘the Group’.
2.Basis of preparation
Under the Companies Act, Cap. 386 of the Laws of Malta, the Company is required to present individual and consolidated financial statements. The financial statements of the Group and the Company have been prepared on a historical cost basis except for the subsequent measurement of the employee benefit obligations and the provision for the MIA Benefit fund and are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and comply with the Companies Act, Cap. 386 of the Laws of Malta. The functional currency of the Company is the Euro which is also the presentation currency of the Group.
The consolidated financial statements comprise the financial statements of Malta International Airport p.l.c, and its subsidiaries, as mentioned in Note 1 above. For more details on the scope of consolidation see Note 40.
3.Judgments in applying accounting policies and key sources of estimation uncertainty
Except as discussed below and in the remaining notes to the financial statements, the directors did not make any significant judgments in the process of applying the Company’s and the Group’s accounting policies which can significantly affect the amounts recognised in the consolidated and the individual financial statements and, at the end of the reporting period, there were no key assumptions concerning the future, or any other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
40
3.Judgments in applying accounting policies and key sources of estimation uncertainty (continued)
3.1.Service Concession Arrangements in terms of IFRIC 12
IFRIC 12 Service Concession Arrangements was endorsed by the EU for financial years beginning after 29 March 2009. The Interpretation, which is limited in scope, clarifies the accounting of service concession arrangements by private sector operators which provide public services on behalf of government or other public sector entities.
The Interpretation of IFRIC 12 provides guidance on the scope of arrangements based on the influence of the guarantor in regulating what services the operator must provide with the infrastructure, to whom it must provide services, and at what price. For arrangements falling within the Interpretation’s scope, the infrastructure assets are not recognised as property, plant and equipment of the operator. Rather, depending on the terms of the arrangement, the operator will recognise:
(i)a financial asset (where the operator has an unconditional right to receive a specified amount of cash or other financial asset over the life of the arrangement); or
(ii)an intangible asset (where the operator’s future cash flows are not specified, for example, where they will vary according to usage of the infrastructure asset); or
both a financial asset and an intangible asset where the operator’s return is provided partially by a financial asset and partially by an intangible asset.
The Group and Company’s business activities and operations are governed under a 65-year concession granted in July 2002. The nature of the Group’s and Company’s operations, including various revenue streams from a number of third-party entities, are not influenced by the grantor of the concession. The setting of prices by the Group and Company’s operational team are based on local and international market forces including seasonality, demand and market rates. The regulator and the Group and the Company collaborate to set rates for regulated revenues with a view of attaining a healthy traffic of travel to the island, rates are discussed and mutually agreed but not imposed. The Company’s and the Group’s proportion of unregulated activities is also not insignificant. Based on the foregoing the directors conclude that accounting under IFRIC 12 rules does not apply to the Group and to the Company.
3.2.Lessee accounting in terms of IFRS 16
Judgments and estimates with regards to IFRS 16 Leases that warrant additional disclosures in terms of IAS 1 comprise (a) the judgment in connection with the inclusion of the aerodrome licence within the scope of IFRS 16 and (b) the estimate in connection with the determination of the incremental borrowing rate upon the implementation of IFRS 16 on 1 January 2019.
The Group concluded that the licence over the aerodrome which includes the Airfield, falls within the scope of IFRS 16 and the contractual payments in this respect have therefore been included within right-of-use assets and lease liabilities, amounting to EUR 10.7 million upon the adoption of IFRS 16 on 1 January 2019. The Group arrived at this conclusion by taking into consideration the following factors - (a) the management of the Airfield is considered to be integral to the use of the land and buildings held as temporary emphyteusis, with the Group having an obligation to manage the Airfield for the same duration of the emphyteusis, (b) the Group considers the licence as being inseparable from the right to use the Airfield (being the tangible component), (c) it is not possible to split the right to operate the Airfield from the right to use the Airfield and (d) the Group considers the use of the Airfield to be the most significant element of the transaction.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
41
3.Judgments in applying accounting policies and key sources of estimation uncertainty (continued)
Upon the implementation of IFRS 16, lease liabilities at 1 January 2019 were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate as of that date. The incremental borrowing rate reflects the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. To determine this rate, the Group obtained information from its bank for the particular purpose and extrapolated it to reflect the specific characteristics of the lease, in particular the long remaining lease term of the temporary emphyteuses and the related aerodrome licence until 2067. The weighted average incremental borrowing rate that the Group applied to its lease liabilities as at 1 January 2019 was 4.07% per annum.
4.Application of new and revised IFRS
4.1.Standards, interpretations and amendments to published standards effective in 2024
A number of amended standards became applicable in the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.
4.2.Standards, interpretations and amendments to published standards that are not yet effective
At the date of approval of these financial statements, a number of other International Financial Reporting Standards were either not yet endorsed by the EU or were not yet applicable to the Group. The Board of Directors anticipate that the adoption of these Standards will have no material impact on the financial statements of the Group in the period of initial application.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
42
5.Operating Segments
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.
For management purposes the Group is organised into operating segments based on the nature of its operations and has the reportable segments as shown below.
Management monitors the operating results of its segments separately for the purposes of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on earnings before interest, tax and deferred income arising from the sale of terminal buildings upon privatisation (EBIT). Revenues and certain costs are allocated in full to particular segments. The remaining costs are allocated across the different segments on the basis of square meters or revenues, as applicable. The Group and the Company financing (including finance income and finance costs), deferred income arising from the sale of terminal buildings upon privatisation and income tax are managed on a Group and Company basis and are not allocated to operating segments.
Airport Segment
The Airport Segment comprises of the activities usually carried out by an airport. These services include revenue from airport regulated fees, aviation concessions and PRMs (persons with reduced mobility) and their associated costs. This segment also includes the operations and maintenance of the terminal, runways, taxiways and aircraft parks.
Retail and Property Segment
The Retail and Property Segment includes various services that support the airport operations. These include the operations of the various retail outlets within the airport perimeter, advertising sites and rental of offices, warehouses and income from the running of the VIP lounges. Income and costs from Airport Parking Limited, Sky Parks Business Centre Limited and Sky Parks Development Limited are also allocated within the Retail and Property Segment.
Other Segment
This comprises services that do not fall under the Airport and the Retail and Property Segments, which include miscellaneous income and disbursement fees from third parties as well as any costs associated with this income.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
43
5.Operating Segments (continued)
The results of the operating segments are reported below:
2024
Retail &
(in EUR)
Airport
Property
Other
The Group
Revenue (external)
99,129,409
43,453,718
286,330
142,869,457
Staff costs
(14,382,288)
(2,816,421)
-
(17,198,709)
Other operating costs
(30,676,079)
(7,710,803)
-
(38,386,882)
Impairment losses on financial assets
(238,325)
28,511
-
(209,814)
EBITDA
53,832,718
32,955,006
286,330
87,074,052
Depreciation
(9,189,640)
(5,603,694)
-
(14,793,334)
EBIT
44,643,078
27,351,312
286,330
72,280,719
Investment income
1,772,097
Finance cost
(2,149,107)
Release of deferred income arising on the sale of terminal buildings upon privatisation
283,659
Profit before tax
72,187,367
2023
Retail &
(in EUR)
Airport
Property
Other
The Group
Revenue (external)
82,364,410
37,609,762
273,776
120,247,948
Staff costs
(12,297,411)
(2,030,305)
-
(14,327,716)
Other operating costs
(24,892,057)
(5,778,500)
-
(30,670,557)
Impairment losses on financial assets
(21,356)
(5,345)
-
(26,701)
EBITDA
45,153,586
29,795,612
273,776
75,222,974
Depreciation
(7,517,150)
(5,050,352)
-
(12,567,502)
EBIT
37,636,436
24,745,260
273,776
62,655,472
Investment income
1,481,698
Finance cost
(2,172,154)
Release of deferred income arising on the sale of terminal buildings upon privatisation
283,603
Profit before tax
62,248,619
Airport segment revenues generated from two clients with each generating 10% or more of revenues amounted to EUR 43,989,460 and EUR 15,733,448 (2023: EUR 33,806,146 and EUR 20,516,118).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
44
6.Revenue
In the following table, revenue of the Group is disaggregated by revenue category. The table also includes a reconciliation of the disaggregated revenue with the Group’s operating segments (see Note 5).
The Group
2024
Retail and
(in EUR)
Airport
Property
Other
Total
Revenue from Services provided
Regulated revenue
80,265,161
-
-
80,265,161
Unregulated revenue
18,864,248
11,611,532
286,330
30,762,113
Revenue from Contracts with Customers
99,129,409
11,611,532
286,330
111,027,274
Revenue from leases (Note 33)
-
31,842,186
-
31,842,186
Total Revenue
99,129,409
43,453,718
286,330
142,869,457
The Group
2023
Retail and
(in EUR)
Airport
Property
Other
Total
Revenue from Services provided
Regulated revenue
66,372,926
-
-
66,372,926
Unregulated revenue
15,991,484
9,936,797
273,776
26,202,057
Revenue from Contracts with Customers
82,364,410
9,936,797
273,776
92,574,983
Revenue from leases (Note 33)
-
27,672,965
-
27,672,965
Total Revenue
82,364,410
37,609,762
273,776
120,247,948
In the following table, revenue of the Company is disaggregated by revenue category:
The Company
(in EUR)
2024
2023
Revenue from Services provided
Regulated revenue
80,265,161
66,372,926
Unregulated revenue
28,925,470
24,584,035
Revenue from Contracts with Customers
109,190,631
90,956,961
Revenue from leases (Note 33)
28,774,378
24,421,844
Total Revenue
137,965,009
115,378,805
All the Group’s revenues and its non-current assets other than financial assets are attributable to the Company’s country of domicile.
Revenue generated with entities under government control is disclosed in Note 32 and 34.
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period either relates to contracts that have an original expected duration of one year or less or is in relation to contracts for which the Company and the Group provide a daily service of access that is distinct, with the uncertainty related to the consideration receivable being also resolved on that basis.
Details of the contract assets and contract liabilities are disclosed in Notes 20 and 21 respectively.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
45
7.Investment Income
The Group
The Company
(in EUR)
2024
2023
2024
2023
Interest income on loans receivable
-
-
713,298
1,433,469
Interest income on treasury bills
111,766
728,996
111,766
728,996
Interest income on term deposits
1,660,331
752,702
1,660,331
752,702
Investment income
1,772,097
1,481,698
2,485,395
2,915,167
8.Finance Cost
The Group
The Company
(in EUR)
2024
2023
2024
2023
Lease interest
2,149,107
2,172,154
2,149,107
2,172,154
Finance cost
2,149,107
2,172,154
2,149,107
2,172,154
9.Other Operating Expenses
The Group
The Company
(in EUR)
Notes
2024
2023
2024
2023
Air traffic services
34
1,000,000
929,611
1,000,000
929,611
Bad debts
20
-
326,277
-
305,350
Cleaning
2,037,824
1,985,251
1,916,604
1,885,735
Ground handling services
1,853,895
1,493,832
1,853,895
1,493,832
Insurance
705,410
594,963
694,793
580,184
IT Expenses
4,273,115
2,998,499
4,273,115
2,998,499
Legal and professional fees
1,935,066
1,107,718
1,911,761
1,083,958
Lease payments on low-value items
33
19,157
12,488
19,157
12,488
Marketing and communication costs
7,083,443
7,299,577
7,244,009
7,354,375
Miscellaneous operating expenses
4,012,519
2,671,036
3,689,844
2,401,297
Other security services
329,799
413,952
255,885
341,062
Airport security costs
34
4,416,682
4,157,174
4,416,682
4,157,174
Repairs and maintenance
7,832,478
4,117,871
7,299,869
3,661,444
Net exchange differences
41,560
23,272
41,556
23,227
Telecommunications
103,765
100,298
102,123
98,375
Utilities
2,742,169
2,438,738
2,730,603
2,430,690
Other operating expenses
38,386,882
30,670,557
37,449,896
29,757,301
Expenses incurred with entities under government control are disclosed in Note 32 and 34.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
46
9.Other Operating Expenses (continued)
Included in the legal and professional fees are amounts that are payable to the parent Company’s auditor:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Audit of the financial statements
124,000
121,000
111,150
106,000
Other assurance
21,800
14,150
21,800
14,150
145,800
135,150
132,950
120,150
10.Key Management Personnel Compensation
Directors' compensation
The Group
The Company
(in EUR)
2024
2023
2024
2023
Short-term benefits:
Fees
94,748
91,456
94,748
91,456
Management remuneration
635,302
575,148
635,302
575,148
Social security costs
2,821
2,683
2,821
2,683
732,871
669,287
732,871
669,287
In addition, during the year under review, the Company granted other benefits to its directors. The aggregate amount of benefits, which includes monetary and non-monetary benefits, amounted to EUR 114,054 (2023: EUR 53,217). These amounts are included with other operating expenses.
Also, during the year under review, the Company maintained professional indemnity insurance for its directors. The aggregate amount of premiums paid in respect thereof amounted to EUR 16,260 (2023: EUR 20,200). These amounts are included with other operating expenses.
11.Staff Costs and Employee Information
Staff Costs
The Group
The Company
(in EUR)
2024
2023
2024
2023
Wages and salaries
15,763,485
13,090,383
15,279,444
12,782,314
Recharge from parent
259,233
223,695
259,233
223,695
Social security costs
1,075,291
900,655
1,042,268
878,085
Retirement benefit costs (Note 23 & 24)
100,700
112,983
100,700
112,983
17,198,709
14,327,716
16,681,645
13,997,077
The above amounts include the directors’ compensation disclosed in Note 10.
The average number of persons employed during the year, including Executive Directors, was made up as follows:
Average No. of Employees
The Group
The Company
(Number)
2024
2023
2024
2023
Business development, operations and marketing
278
244
262
232
Finance, IT and IM
39
29
39
29
Firemen
49
48
49
48
Met office
15
13
15
13
Technical and engineering
90
83
90
83
471
417
455
405
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
47
12.Income Tax Expense
Income tax recognised in profit or loss is as follows:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Current tax expense
25,264,416
21,858,496
25,131,946
21,758,520
Deferred tax
583,801
86,270
311,965
62,318
Income tax expense for the year
25,848,217
21,944,766
25,443,911
21,820,838
Tax applying the statutory domestic income tax rate and the income tax expense for the year is reconciled as follows:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Profit before Tax
72,187,369
62,248,619
71,263,474
61,923,915
Tax at applicable rate of 35 %
25,265,579
21,787,017
24,942,216
21,673,370
Tax effect of:
Depreciation charges not deductible by way of capital allowances in determining taxable income
378,488
378,243
319,745
319,501
Other net difference between accounting and tax deductible items of expenditure
(83,776)
(82,286)
(31,894)
(31,623)
Interest income subject to 15% tax
(23,197)
(133,775)
(23,197)
(133,775)
Other differences
311,123
(4,433)
237,041
(6,635)
Income tax expense for the year
25,848,217
21,944,766
25,443,911
21,820,838
Deferred tax recognised in other comprehensive income is as follows:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Deferred tax debit / (credit) on defined benefit pension plans
(2,445)
12,865
(2,445)
12,865
13.Dividends
The net final dividend for 2023 of EUR 16,236,000 (EUR 12.0 cents per ordinary share) proposed by the directors of the Company for the previous financial year was approved by the shareholders at the Annual General Meeting on 15 May 2024 and was paid during the reporting period on 31 May 2024. The net final dividend for 2022 of EUR 16,236,000 (EUR 12.0 cents per ordinary share) proposed by the Directors during 2023 was paid in the comparative period on 26 May 2023.
On 13 September 2024, a net interim dividend of EUR 8,118,000 (EUR 6.0 cents per share) (2023: EUR 4,059,000) was paid to ordinary shareholders of the Company.
The Directors propose that a net final dividend of EUR 12.0 cents per ordinary share will be paid to ordinary shareholders in respect of the year ended 31 December 2024. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been included as a liability in the financial statements. The total proposed dividend to be paid is EUR 16,236,000 (2023: EUR 16,236,000).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
48
14.Property, Plant and Equipment
Total
279,128,982
43,775,514
322,904,496
53,892,233
(1,420,207)
(5,284,703)
370,091,819
109,050,312
11,734,099
120,784,411
13,947,751
(825,002)
(5,284,703)
128,622,457
202,120,085
241,469,362
Advance deposits
-
7,007,303
7,007,303
(4,305,916)
-
-
2,701,387
-
-
-
-
-
-
-
7,007,303
2,701,387
Motor vehicles
2,031,109
40,868
2,071,977
407,425
(34,014)
(88,598)
2,356,790
1,569,277
164,926
1,734,203
176,485
(34,014)
(88,598)
1,788,076
337,774
568,714
Furniture,fixtures,plant and equipment
109,209,924
36,049,581
145,259,505
55,250,788
-
(5,196,105)
195,314,188
56,013,011
8,392,666
64,405,677
10,595,225
-
(5,196,105)
69,804,796
80,853,828
125,509,392
-
Buildings
Not subject to operating leases
63,915,251
488,666
64,403,917
1,831,294
-
-
66,235,211
26,802,557
1,151,022
27,953,579
1,154,834
-
29,108,413
36,450,338
37,126,799
Subject to operating leases - The Group as lessor
16,672,108
189,096
16,861,204
708,642
(1,386,193)
-
16,183,653
7,723,232
445,402
8,168,634
446,877
(790,988)
-
7,824,523
8,692,570
8,359,130
Related Aerodrome Licence
10,746,985
-
10,746,985
-
-
-
10,746,985
886,348
221,587
1,107,935
221,587
-
-
1,329,521
9,639,050
9,417,464
Land held on temporary emphyteusis
Not subject to operating leases
58,567,090
-
58,567,090
-
-
-
58,567,090
12,754,757
1,089,514
13,844,271
1,084,900
-
-
14,929,171
44,722,819
43,637,919
Subject to operating leases - The Group as lessor
17,986,515
-
17,986,515
-
-
-
17,986,515
3,301,130
268,982
3,570,112
267,843
-
-
3,837,955
14,416,403
14,418,560
The Group
(in EUR)
Cost
At 1 January 2023
Additions
At 1 January 2024
Additions
Disposals
Write-offs
At 31 December 2024
Accumulated depreciation
At 1 January 2023
Provision for the year
At 1 January 2024
Provision for the year
Disposal Adjustments
Write-offs
At 31 December 2024
Carrying amount
At 31 December 2023
At 31 December 2024
No depreciation is being charged on assets not yet available for use amounting to EUR 33,411,751(2023: EUR 20,774,684).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
49
14.Property, Plant and Equipment (continued)
Total
248,913,975
43,724,733
303,896,527
53,262,674
(1,420,207)
(5,284,703)
350,454,291
105,940,290
10,690,903
116,631,193
12,856,500
(825,002)
(5,824,703)
123,377,988
187,265,334
227,076,303
Advance deposits
-
7,007,303
7,007,303
(4,305,916)
-
-
2,701,387
-
-
-
-
-
-
-
7,007,303
2,701,387
Motor vehicles
1,925,749
40,864
2,049,621
407,427
(34,014)
(88,598)
2,334,434
1,546,925
164,932
1,711,857
176,491
(34,014)
(88,598)
1,765,736
337,764
568,698
Furniture,fixtures,plant and equipment
89,016,571
36,012,276
136,191,839
54,621,229
-
(5,196,106)
185,616,963
53,384,07
7,561,420
60,945,498
9,715,305
-
(5,196,105)
65,464,698
75,246,341
120,152,265
Buildings
Not subject to operating leases
55,265,295
500,875
55,775,436
1,915,112
-
-
57,690,548
26,648,662
1,043,893
27,692,555
1,048,346
-
-
28,740,901
28,082,881
28,949,647
Subject to operating leases - The Company as lessor
15,405,770
163,415
15,571,738
624,824
(1,386,193)
-
14,810,369
7,418,389
340,581
7,989,934
342,033
(790,988)
-
7,310,015
7,812,768
7,500,354
Related Aerodrome Licence
10,746,985
-
10,746,985
-
-
-
10,746,985
886,348
221,587
1,107,935
221,587
-
-
1,329,522
9,639,050
9,417,463
Land held on temporary emphyteusis
Not subject to operating leases
50,239,420
-
50,239,420
-
-
-
50,239,420
10,854,179
897,962
11,752,141
894,160
-
-
12,646,300
38,487,279
37,593,119
Subject to operating leases - The Company as lessor
26,314,185
-
26,314,185
-
-
-
26,314,185
5,201,709
460,528
5,662,237
458,578
-
-
6,120,815
20,651,948
20,193,370
The Company
(in EUR)
Cost
At 1 January 2023
Additions
At 1 January 2024
Additions
Disposals
Write-offs
At 31 December 2024
Accumulated depreciation
At 1 January 2023
Provision for the year
At 1 January 2024
Provision for the year
Diposal Adjustments
Write-offs
At 31 December 2024
Carrying amount
At 31 December 2023
At 31 December 2024
In addition, the cost of fully depreciated plant and equipment amounts to EUR 28,559,370 (2023: EUR 26,953,507) for the Group and EUR 27,725,763 the Company (2023: EUR 26,953,507).
Included in the additions for the reporting period is an amount of capitalised lease interest of EUR 8,774 (2023: EUR 12,508).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
50
14.Property, Plant and Equipment (continued)
The Group’s assets under construction as at 31 December 2024 amounted to EUR 33,411,751(2023: EUR 20,774,684) and includes EUR 30,117,041 (2023: EUR 20,047,773) of furniture, fixtures, plant & equipment, EUR 3,222,275 (2023: EUR 726,911) of buildings and EUR 72,435 of motor vehicles (2023: nil). No depreciation is being charged on these assets.
The Company’s assets under construction as at 31 December 2024 amounted to EUR 33,326,895(2023: EUR 20,670,655) and includes EUR 30,032,185 (2023: EUR 19,943,744) of furniture, fixtures, plant & equipment and EUR 3,222,275 (2023: EUR 726,911) of buildings and EUR 72,435 of motor vehicles (2023: nil). No depreciation is charged on these assets.
Included under advance deposits are amounts in relation to HVAC upgrade, new baggage reclaim belts and apron stands. Details of right-of-use assets presented under property, plant and equipment are provided in Note 33.
As at 31 December 2024 management has assessed, and is of the opinion, that no triggering event has occurred in accordance with IAS 36.
15.Investment Property
The investment property relates to the business centre which is located on a portion of the land held on temporary emphyteusis. The carrying amount of the property includes the cost of construction and the cost of items that are an integral part of the building. The carrying amount also includes the portion of the right-of-use asset in relation to the temporary emphyteusis of the leasehold land classified as investment property, as further disclosed in Note 33.
(in EUR)
The Group
The Company
Cost
At 1 January 2023
24,117,965
341,460
Additions from subsequent expenditure
487,313
-
At 1 January 2024
24,605,278
341,460
Additions from subsequent expenditure
14,509,217
-
At 31 December 2024
39,114,496
341,460
Accumulated depreciation
At 1 January 2023
8,242,749
27,876
Provision for the year
833,403
6,969
At 1 January 2024
9,076,152
34,845
Provision for the year
845,581
6,969
At 31 December 2024
9,921,733
41,814
Carrying amount
At 31 December 2023
15,529,126
306,615
At 31 December 2024
29,192,762
299,646
The Group's investment property includes an amount of EUR 17,294,548 (2023: EUR 2,727,777) which as at 31 December 2024, is classified as an asset under construction.
The Company’s investment property comprises the portion of the right-of-use asset in relation to the temporary emphyteusis of the leasehold land classified as investment property with a carrying amount of EUR 306,615 at 1 January 2024 (2023: EUR 313,584) less depreciation charge for the year of EUR 6,969 (2023: EUR 6,969) resulting in the carrying amount of EUR 299,646 at 31 December 2024 (2023: EUR 306,615).
During the year, direct operating expenses of EUR 1,182,193 (2023: EUR 1,351,065) arising from the investment property were incurred. Such expenses were incurred in generating rental income for the year.
The operating lease income generated from the investment property is disclosed under Note 33.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
51
15.Investment Property (continued)
Fair Value
Based on an internal valuation carried out by the directors of the Company, the fair value of the Group’s investment property was in the region of EUR 26 million at the balance sheet date (2023: EUR 29 million).
The fair value measurement is categorised within Level 3 of the fair value hierarchy. The model is based on the present value of the net cash flows expected to be generated by the property on the basis of market expectations and includes the rates stipulated in the existing contracts with tenants, expected increase in rents after the non-cancellable period, occupancy rates and all other costs attributable to these assets. The expected net cash flows are discounted using a discount factor representing a weighted average cost of capital that is considered appropriate in the circumstances. The net cash flows reflect the amounts in the 2025 budget and long-term corporate planning.
In estimating fair value, the highest and best use of the property is its current use.
16.Investment in Subsidiaries
The Company’s investment in subsidiaries is stated at cost and comprises:
Share Capital
The Company
(in EUR)
2024
2023
Airport Parking Limited
1,200
1,200
Sky Parks Development Limited
2,001,200
2,001,200
Sky Parks Business Centre Limited
1,200
1,200
Kirkop PV Farm Limited
1,200
1,200
Investment in subsidiaries
2,004,800
2,004,800
The Company holds a 100% (2023: 100%) ownership in the ordinary share capital of Airport Parking Limited, a limited liability company incorporated in Malta, whose principal activity is the operation of car parks within the limits of the airport.
The Company holds a 100% (2023: 100%) ownership in the ordinary share capital of Sky Parks Development Limited, a limited company incorporated in Malta, whose principal activity is to manage real estate projects within the land which is currently under the management of the Group.
The Company holds a 100% (2023: 100%) ownership in the ordinary share capital of Sky Parks Business Centre Limited, a limited liability company incorporated in Malta, whose principal activity is to operate the Business Centre within the limits of the airport.
The Company holds a 100% (2023: 100%) ownership in the ordinary share capital of Kirkop PV Farm Limited, a limited liability company incorporated in Malta. The principal activity of this company is to explore opportunities in the generation of electricity using photovoltaic technologies.
The principal place of business of the company’s subsidiaries is Malta. The registered offices for these subsidiaries are as follows:
Airport Parking Ltd
Level 2
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
52
16.Investment in Subsidiaries (continued)
Sky Parks Development Ltd
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
Sky Parks Business Centre Ltd
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
Kirkop PV Farm Limited
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
The following table shows financial information for the consolidated subsidiaries:
Airport Parking Ltd
(in EUR)
2024
2023
Profit/(Loss) for the year
51,998
(166,444)
Share Capital
1,200
1,200
Retained earnings
1,500,749
1,448,751
Total Equity
1,501,949
1,449,951
Sky Parks Development Ltd
(in EUR)
2024
2023
Profit for the year
645,111
334,692
Share Capital
2,001,200
2,001,200
Accumulated Losses
(213,750)
(858,860)
Total Equity
1,787,450
1,142,340
Sky Parks Business Centre Ltd.
(in EUR)
2024
2023
Profit for the year
34,138
32,524
Share Capital
1,200
1,200
Retained earnings
1,716,381
1,682,245
Total Equity
1,717,581
1,683,445
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
53
17.Loans Receivable
The Company
Loans to
(in EUR)
subsidiary
Amortised cost
At 31 December 2024
37,345,692
Less: Amount expected to be settled within 12 months (shown under current assets)
(2,290,720)
Amount expected to be settled after 12 months
35,054,972
The Company
Loans to
(in EUR)
subsidiary
Amortised cost
At 31 December 2023
24,680,261
Less: Amount expected to be settled within 12 months (shown under current assets)
(1,937,663)
Amount expected to be settled after 12 months
22,742,598
The Company has granted five unsecured loans to subsidiaries. A loan commitment of EUR 80 million was granted during the reporting period and this loan can be withdrawn until 2031. An amount of EUR 14.6 million has been withdrawn during the year.
Another loan was granted in 2019 and represents a loan commitment of EUR 20 million which was partly drawn down during the prior years (EUR 14.2 million). No repayments were made during 2024 (2023: 2.5 million) and shall be repaid in full by the year 2044.
Two loans with a total amount outstanding as at the end of the reporting period of EUR 6.5 million (2023: EUR 8.4 million) are being repaid on equal annual instalments until 2029. Repayments of the fifth loan with an amount outstanding of EUR 4.6 million (2023: EUR 4.6 million) will commence in 2030.
The following table shows a reconciliation from the opening to the closing balances for the loans to the subsidiaries:
The Company
Loans to
(in EUR)
subsidiary
Carrying amount
At 31 December 2022
27,824,038
Additions
-
Repayments
(3,143,777)
At 31 December 2023
24,680,261
Additions
14,603,094
Repayments
(1,937,663)
At 31 December 2024
37,345,692
Details on the Company’s exposure to credit risk, the risk management policy and the expected credit losses on the loans receivable are provided in Note 37.
All loans are at arm’s length and carry a fixed interest rate of 2%.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
54
18.Deferred Taxation
The Group
Movement
Movement
(in EUR)
31.12.2022
for the year
31.12.2023
for the year
31.12.2024
Assets / (Liabilities)
Assets / (Liabilities)
Assets / (Liabilities)
Arising on:
Recognised in Total Comprehensive Income:
Accelerated tax depreciation
(3,149,105)
(239,411)
(3,388,516)
(579,377)
(3,967,893)
Provision for pension costs
973,748
(58,939)
914,809
(55,245)
859,565
Deferred income
1,419,316
(73,068)
1,346,248
(73,068)
1,273,180
Unabsorbed capital allowances
1,750,656
(98,060)
1,652,596
(334,216)
1,318,381
Lease income adjustment
(783,795)
(67,657)
(851,452)
2,265
(849,187)
Right-of-Use assets
(14,644,458)
329,134
(14,315,324)
327,126
(13,988,198)
Lease liabilities
18,914,872
116,093
19,030,965
120,818
19,151,782
Future deductions of refinancing costs
554,024
(82,077)
471,947
(82,077)
389,869
Other temporary differences
378,677
100,579
479,256
87,528
566,785
Subtotal
5,413,935
(73,406)
5,340,529
(586,246)
4,754,284
Arising on:
Other movements:
Provision for pension costs
206,204
-
206,204
-
206,204
Subtotal
206,204
-
206,204
-
206,204
Total
5,620,139
(73,406)
5,546,733
(586,246)
4,960,488
The Company
Movement
Movement
(in EUR)
31.12.2022
for the year
31.12.2023
for the year
31.12.2024
Assets / (Liabilities)
Assets / (Liabilities)
Assets / (Liabilities)
Arising on:
Recognised in Total Comprehensive Income:
Accelerated tax depreciation
(1,037,507)
(380,235)
(1,417,742)
(720,978)
(2,138,720)
Provision for pension costs
973,748
(58,939)
914,809
(55,245)
859,565
Deferred income
1,419,316
(73,068)
1,346,248
(73,068)
1,273,180
Lease income adjustment
(712,628)
7,323
(705,305)
(26,689)
(731,994)
Right-of-Use assets
(14,644,458)
329,134
(14,315,324)
327,126
(13,988,198)
Lease liabilities
18,914,872
116,093
19,030,965
120,818
19,151,782
Other temporary differences
275,969
10,239
286,208
113,626
399,835
Subtotal
5,189,312
(49,453)
5,139,859
(314,410)
4,825,450
Arising on:
Other movements:
Provision for pension costs
206,204
-
206,204
-
206,204
Subtotal
206,204
-
206,204
-
206,204
Total
5,395,516
(49,453)
5,346,063
(314,410)
5,031,654
Included in Total Comprehensive Income is an amount of EUR 2,445 deferred tax debit (2023: EUR 12,865 deferred tax credit) recorded in Other Comprehensive Income during the year for both the Group and the Company in connection with the provision for pension costs.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
55
18. Deferred Taxation (Continued)
Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. The amount of deferred tax assets that can be recognised is based upon the likely timing and level of future taxable profits together with future tax-planning strategies.
19.Inventories
The Group
The Company
(in EUR)
2024
2023
2024
2023
Consumables
1,557,530
1,280,119
1,557,530
1,280,119
The cost of inventories recognised as an expense during the year was of EUR 2,352,818(2023: EUR 1,464,791).
20.Trade and Other Receivables
The Group
The Company
(in EUR)
2024
2023
2024
2023
Short-term receivables
Trade receivables
16,271,852
13,514,621
15,377,815
11,540,047
Receivables from other related parties
2,413,866
7,608,010
2,385,737
7,210,826
Receivables from subsidiaries
-
-
4,785,996
4,871,962
Other receivables
2,438,740
3,053,338
1,703,104
2,783,989
Prepayments
5,019,212
3,681,421
4,795,879
3,452,400
26,143,670
27,857,390
29,048,530
29,859,224
Long-term receivables
Other receivables
1,871,084
1,900,124
2,021,223
1,974,970
Total receivables
28,014,754
29,757,514
31,069,753
31,834,194
The terms and conditions of the receivables from subsidiaries and related parties are disclosed in Note 32. Trade receivables are non-interest bearing and are generally on 30-day terms.
The receivables from other related parties of the Group and the Company of EUR 2,413,866(2023: EUR 7,608,010) and EUR 2,385,737 (2023: EUR 7,210,826) respectively, is made up entirely from balances owed from entities under government control. R eceivables from other related parties are non-interest bearing and are generally on 30-to-90-day terms.
Impairment of Trade Receivables
For details on the accounting policies with respect to trade receivables and impairment of trade receivables refer to Note 40.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
56
20.Trade and Other Receivables (continued)
The movement in the credit loss allowance in respect of trade receivables during the year for the Group and the Company was as follows:
Loss Allowance
The Group
Individual
Collective
(in EUR)
Assessment
Assessment
Total
At 1 January 2023
335,127
678,577
1,013,704
Credit loss allowances
15,808
346,473
362,281
Reversal of impairment loss
(335,580)
-
(335,580)
At 31 December 2023
15,355
1,025,050
1,040,405
Credit loss allowances
102,982
106,832
209,814
At 31 December 2024
118,337
1,131,882
1,250,219
The Company
Individual
Collective
(in EUR)
Assessment
Assessment
Total
At 1 January 2023
314,200
473,811
788,011
Credit loss allowances
6,732
337,175
343,907
Reversal of impairment loss
(314,651)
-
(314,651)
At 31 December 2023
6,281
810,986
817,267
Credit loss allowances
102,432
224,040
326,472
At 31 December 2024
108,713
1,035,026
1,143,739
The Group
Collective(not credit-impaired)
Collective(credit-impaired, but not POCI)
Individual(credit-impaired, but not POCI)
LT-ECL(in EUR)
Total
Balance as at 1 January 2023
481,058
197,519
335,127
1,013,704
Addition
229,879
116,594
15,808
362,281
Reversal
-
-
(335,580)
(335,580)
Balance as at 31 December 2023
710,937
314,113
15,355
1,040,405
Movement
(243,511)
350,343
102,982
209,814
Balance as at 31 December 2024
467,426
664,456
118,337
1,250,219
The Company
Collective(not credit-impaired)
Collective(credit-impaired, but not POCI)
Individual(credit-impaired, but not POCI)
LT-ECL(in EUR)
Total
Balance as at 1 January 2023
404,678
69,133
314,200
788,011
Addition
149,889
187,286
6,732
343,907
Reversal
-
-
(314,651)
(314,651)
Balance as at 31 December 2023
554,567
256,419
6,281
817,267
Movement
(128,149)
352,189
102,432
326,472
Balance as at 31 December 2024
426,418
608,608
108,713
1,143,739
The Group and the Company do not hold any collateral over the past due but not impaired balances. These trade receivables are substantially companies with good track records with the Group.
Details on the Group’s risk management policies in relation to credit risk are provided in Note 37.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
57
21.Trade and Other Payables
The Group
The Company
(in EUR)
2024
2023
2024
2023
Short-term payables
Trade payables
6,468,067
5,825,200
6,253,315
5,610,635
Other payables
402,585
521,995
364,504
348,193
Payables due to parent
22,718
22,718
Payables due to other related party
934,396
641,641
934,360
641,641
Payables due to subsidiaries
-
-
3,100,000
66,375
Deferred income related to subsidiaries
-
-
110,242
81,445
Contract liabilities
572,251
539,334
572,251
539,334
Deferred income & related payables
1,921,358
3,233,118
1,545,039
2,017,388
Other Deferred income
323,914
323,898
323,914
323,898
Accruals
55,925,416
44,718,778
54,208,797
44,083,899
66,570,705
55,803,964
67,435,140
53,712,808
Long-term payables
Other payables
5,723,159
1,957,908
5,318,545
1,770,277
72,293,864
57,761,872
72,753,685
55,483,085
Contract liabilities represent prepayments from contracts with customers in relation to VIP services. The balance as at 31 December 2023 of EUR 539,334 was fully recognised as revenue during the reporting period and the balance as at 31 December 2022 of EUR 367,649 was fully recognised as revenue during the comparative period.
Accruals at the end of the year, amounting to EUR 17.8 million (2023: EUR 20.7 million) are in respect to related parties.
Terms and conditions of the above financial liabilities:
•Trade payables are non-interest bearing and are normally settled on 30-day terms.
•Other payables are non-interest bearing and have an average term of three months.
•The terms and conditions of the payables due to the related party and the subsidiaries are disclosed in Note 32.
•Long-term other payables are non-interest bearing and are expected to be settled in between one and five years.
All the above amounts are unsecured.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
58
22.Other Deferred Income
The Group
Movement for the year
(in EUR)
2023
Amortisation
2024
Deferred income arising on the sale of terminal buildings upon privatisation
5,211,916
(283,659)
4,928,257
European Commission grant
161,040
(40,255)
120,785
Total deferred income as at 31 December
5,372,956
(323,914)
5,049,042
Less amounts included in trade and other payables
(323,898)
(323,914)
Amounts included in non-current liabilities
5,049,058
4,725,128
The Group
Movement for the year
(in EUR)
2022
Amortisation
2023
Deferred income arising on the sale of terminal buildings upon privatisation
5,495,519
(283,603)
5,211,916
European Commission grant
201,295
(40,255)
161,040
Total deferred income as at 31 December
5,696,814
(323,858)
5,372,956
Less amounts included in trade and other payables
(323,888)
(323,898)
Amounts included in non-current liabilities
5,372,926
5,049,058
The Company
Movement for
the year
(in EUR)
2023
Amortisation
2024
Deferred income arising on the sale of terminal buildings upon privatisation
5,211,916
(283,659)
4,928,257
European Commission grant
161,040
(40,255)
120,785
Total deferred income as at 31 December
5,372,956
(323,914)
5,049,042
Less amounts included in trade and other payables
(323,898)
(323,914)
Amounts included in non-current liabilities
5,049,058
4,725,128
The Company
Movement for
the year
(in EUR)
2022
Amortisation
2023
Deferred income arising on the sale of terminal buildings upon privatisation
5,495,519
(283,603)
5,211,916
European Commission grant
201,295
(40,255)
161,040
Total deferred income as at 31 December
5,696,814
(323,858)
5,372,956
Less amounts included in trade and other payables
(323,888)
(323,898)
Amounts included in non-current liabilities
5,372,926
5,049,058
The deferred income arising on the sale of terminal buildings that took place on the date of the privatisation of the Company in 2002 is being taken to income in accordance with the accounting policy stated in Note 40.
The European Commission grant is composed of grants related to assets and which were received in 2006 and 2011 in respect of the upgrading of the taxiways project.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
59
23.Employee Benefit Obligations
The Group
The Company
(in EUR)
2024
2023
2024
2023
Non-current provision
2,689,699
2,890,265
2,689,699
2,890,265
The provision at year end represents the estimated amounts that are to be reimbursed by the Company to the Government of Malta. The provision for retirement benefits is unfunded and represents the Company’s and the Group’s share of the year end provision in accordance with the Pensions Ordinance (Cap 93) for obligations relating to pensions of employees who joined the public service before 15 January 1979 and were transferred to the Company.
The provision has been computed in accordance with the accounting policy stated in Note 40 and represents the Company’s and the Group’s obligation (i) discounted to the net present value at the rate which has been determined by reference to market yields at the end of the reporting period on high quality corporate bonds in Euros (ii) after considering the average life expectancy of such employees based on the latest publicly available mortality tables and (iii) where applicable, expected rates of salary increases based on the inflation and previous increases given to employees and (iv) the Company’s expectations, based on historic data, of the payment options that will be selected by the plan members, being either an annual benefit per employee or a lump sum payment plus a reduced annual benefit per employee until death, capped in accordance with statutory requirements.
The movement in the provision for retirement benefit plan may be analysed as follows:
The Group & The Company
(in EUR)
2024
2023
Present value of the provision for retirement benefits at 1 January
2,890,265
2,964,300
Payments effected
(248,157)
(200,760)
Recognised in Staff costs
Charge for the year
53,513
93,510
thereof Service costs
51,694
90,406
thereof Interest costs
1,819
3,104
Recognised in Other Comprehensive Income
Actuarial gains resulting from changes in financial assumptions, gross of deferred tax
(5,922)
33,215
Present value of the provision for retirement benefits at 31 December
2,689,699
2,890,265
The year-end obligation of EUR 2,689,699 (2023: EUR 2,890,265) is fully in relation to retired employees.
The plan exposes the Group and the Company to such risks as (i) interest risk, since a decrease in market yields will increase the plan liability; (ii) longevity risk, since an increase in the life expectancy of the plan participants will increase the plan liability; and (iii) salary risk, since an increase in the salary of the plan participants will increase the plan liability.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
60
23.Employee Benefit Obligations (continued)
The significant actuarial assumptions used to determine the present value of the retirement benefit plan were as follows:
2024
2023
Discount rate(s)
3.40%
3.32%
Mortality rate(s) in years
- Males
79
79
- Females
83
83
The sensitivity analysis below are in connection with each significant actuarial assumption and are prepared as of the end of the reporting period, showing how the defined benefit obligation would have been affected by hypothetical changes in the relevant actuarial assumption that were reasonably possible at that date, while holding all other assumptions constant.
The sensitivity analysis presented below are for illustrative purposes only and may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. In presenting the sensitivity analysis, the present value of the obligation has been calculated using the projected unit credit method at the end of the reporting period. The amounts generated from the sensitivity analysis represent forward-looking estimates and hence, actual results in the future may differ materially from those projected results.
•If the discount rate is 25 basis points higher (lower) with all other assumptions held constant, the defined benefit obligation decreases by EUR 18,255 (increases by EUR 18,638) (2023: decreases by EUR 21,975 (increases by EUR 22,457)).
•If the life expectancy increases (decreases) by one year for both men and women with all other assumptions held constant, the defined benefit obligation increases by EUR 143,653 (decreases by EUR 154,645) (2023: increases by EUR 176,970 (decreases by EUR 179,644)).
The weighted average duration of the defined benefit obligation at 31 December 2024 is 6 years (2023: 7 years) in relation to retired employees.
24.Provision for MIA Benefit Plan
The Group
The Company
(in EUR)
2024
2023
2024
2023
Non-current provision
307,551
264,827
307,551
264,827
The provision for the MIA benefit plan is unfunded and represents the year-end provision for obligations relating to payments to employees after their retirement as per the Company’s Collective Agreement. The provision has been computed in accordance with the accounting policy stated in Note 40 and represents the Company’s possible obligation discounted to the net present value at the rate which has been determined by reference to market yields at the end of the reporting period on high quality corporate bonds in Euros after considering the probability that employees reach the applicable retirement age when they are still in employment with the Company.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
61
24.Provision for MIA Benefit Plan (continued)
The movement in the provision for retirement pension plan may be analysed as follows:
The Group & The Company
(in EUR)
2024
2023
Present value of the provision for MIA benefit plan at 1 January
264,827
359,188
Payments effected
(3,400)
(4,200)
Recognised in Staff costs
Charge for the year
47,187
(93,703)
Recognised in Other Comprehensive Income
Actuarial gains resulting from changes in financial assumptions, gross of deferred tax
(1,063)
3,542
Present value of the provision for MIA benefit plan at 31 December
307,551
264,827
25.Share Capital
The Company
As at 31.12.2024 and 31.12.20 23
Authorised
Issued and called up
(in EUR)
111,809,746 "A" ordinary shares of EUR 0.25 each (81,179,990 of which have been issued, called up and fully paid)
27,952,436
20,294,997
74,539,840 "B" ordinary shares of EUR 0.25 each (54,120,000 of which have been issued, called up and fully paid)
18,634,960
13,530,000
14 "C" ordinary shares of EUR 0.25 each (10 of which have been issued, called up and fully paid)
4
3
46,587,400
33,825,000
The Ordinary ‘A’ and ‘B’ shares have the same rights, benefits, powers in the Company and are freely transferable. Ordinary ‘C’ shares carry no voting rights and do not receive dividends.
Shareholders owning 5% or more of the Company’s equity share capital at 31 December 2024 were:
Shareholder
Share
Type
Malta Mediterranean Link Consortium Ltd. *
40.0%
'B' shares
Government of Malta
20.0%
'A' and 'C' shares
VIE (Malta) Limited
10.1%
'A' shares
* of which VIE (Malta) Limited constitutes 95.85%
The number of shareholders developed as follows:
Number of Shareholders
05.02.2025
13.09.2024
Change
1-500 shares
646
598
48
501-1,000 shares
900
880
20
1,001-5,000 shares
3,501
3,515
(14)
5,001 and over
1,382
1,400
(18)
6,429
6,393
36
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
62
26.Short-term Treasury Bills
No further investments in treasury bills were made during the current period (2023: EUR 15 million).
27.Term Deposits
During the reporting period the Company increased its fixed term deposits by EUR 8 million. The term deposits have a maturity expiring within 3 months from the reporting date and carry a fixed interest rate.
28.Cash and Cash Equivalents
Cash and cash equivalents shown in the statements of cash flow comprise the following amounts presented in the Statements of Financial Position:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Cash at bank
19,914,918
24,674,829
18,585,279
21,759,733
29.Earnings per Share
Earnings per ordinary share attributable to the owners of the parent has been calculated by dividing the Group’s net profit for the year after taxation attributable to the ordinary equity holders of the Group by the weighted average number of ordinary shares in issue during the year.
The Group
2024
2023
Profit for the year attributable to ordinary equity holders of the Group (in EUR)
46,339,150
40,303,853
Weighted average number of A and B shares
135,299,990
135,299,990
Earnings per share attributable to ordinary equity holders of the Group (in EUR)
0.342
0.298
There is no difference between the basic and diluted earnings per share as the Company has no potential dilutive ordinary shares.
30.Capital Commitments
The Group
The Company
(in EUR)
2024
2023
2024
2023
Property, plant and equipment:
Contracted but not provided for
26,900,949
44,744,911
26,845,738
44,744,911
Authorised but not contracted for
29,421,230
32,385,635
26,429,330
32,285,635
Investment property:
Contracted but not provided for
75,579,674
85,314,509
-
-
Authorised but not contracted for
700,000
150,000
-
-
In the current reporting period PPE and investment property contracted but not provided for which will be leased out was EUR 75,579,674 (2023: EUR nil), whereas the amount of PPE and investment property authorised but not contracted for which will be leased out amounts to EUR 725,000 (2023: EUR 12,474,000).
Further to the capital commitments disclosed above, the Group has discussed plans covering a five-year period which amount to a combined spend of around EUR 345 million, starting from the 2025 budget year. The EUR 345 million includes capital commitments disclosed in the table above and further tranches of commitments will be authorised by the Board in the coming years in a piece-meal manner.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
63
31.Contingent Liabilities
At reporting date, there existed the following contingent liabilities:
(i)claims filed by former employees of the Company for unfair dismissal and wrong application of disciplinary procedures, the amount of which has not been determined;
(ii)A judicial protest first lodged by the Government of Malta in 2008 relating to reimbursement of specified expenses and which were last estimated by the Government to amount to approximately EUR 8.3 million as at 31 March 2024. The amount is expected to be updated by the Government of Malta in line with prior year increases.
In the directors’ opinion, all the above contingent liabilities are unfounded.
32.Related Party Disclosures
During the course of the year, the Group and the Company entered into transactions with related parties as set out below. Transactions between the Company and its subsidiaries have been eliminated on consolidation. The related party transactions in question were:
2024
2023
Related
Related
The Group
party
Total
party
Total
(in EUR)
activity
activity
%
activity
activity
%
Revenue
Related party transaction with:
Entities controlled by Government *
20,261,485
21,159,142
20,261,485
142,869,457
14
21,159,142
120,247,948
18
Other operating costs
Related party transaction with:
Entities controlled by Government *
5,258,523
4,033,744
Key management personnel of the Group
863,185
742,704
Entities that control the Company's parent
520,906
345,023
6,642,614
38,386,882
17
5,121,471
30,670,557
17
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
64
32.Related Party Disclosures (continued)
2024
2023
Related
Related
The Company
party
Total
party
Total
(in EUR)
activity
activity
%
activity
activity
%
Revenue
Related party transaction with:
Entities controlled by Government *
20,087,453
21,015,661
Subsidiaries
2,842,829
3,443,903
Entities that control the Company's parent
-
-
22,930,282
137,965,009
16
24,459,564
115,378,805
21
Other operating costs
Related party transactions with:
Entities controlled by Government *
5,255,367
4,033,744
Key management personnel of the Company
863,185
742,704
Subsidiaries
225,000
225,000
Entities that control the Company's parent
520,906
345,023
6,864,458
37,449,896
18
5,346,471
29,757,301
18
* This balance is exclusive of material contracts shown in Note 34.
The Company has earned interest income amounting to EUR 713,298 (2023: EUR 1,433,469) on the loans granted to subsidiaries (see Note 17).
The amounts due to/from related parties are disclosed in Note 17, 20 and 21. The terms and conditions do not specify the nature of the consideration to be provided in settlement. No guarantees have been given or received. These amounts were unsecured and, except as specified in Note 17, are interest-free.
In addition to the above, the details of the material contracts entered into by the Company in the year ended 31 December 2024 with its substantial shareholders and their related parties are disclosed in Note 34.
Lease liabilities presented in the Statement of Financial Position within non-current liabilities and recognised on 1 January 2019 in terms of IFRS 16 include the Group’s obligation in relation to the right to use the land and the buildings held on temporary emphyteuses. Annual ground rents are payable to Malita Investments plc (previously to the Government of Malta) and the corresponding licence payable to the Government of Malta, as further disclosed in Note 33.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
65
33.Lease Arrangements
The Group and the Company as lessee
The Group and the Company recognised right-of-use assets within Property, Plant and Equipment and Investment Property.
Right-of-use assets are primarily in relation to the temporary emphyteusis of the leasehold land and buildings with ground rents payable by the Group to Malita Investments plc (previously to the Government of Malta) and further payments for the related aerodrome licence fee payable to the Government of Malta. The lease payments on the temporary emphyteusis are adjusted upwards periodically by a specified rate. The payments for the related aerodrome licence fee are subject to revisions in terms of the Airport Economic Regulations and are directly linked to revisions in airport charges. There are no residual value guarantees in this respect. The lessor has a special privilege in relation to the obligations emanating from the temporary emphyteuses and a general hypothec over all the property of the Company, present and future. The Group is entitled to enjoy and make full use of the emphyteutical site as provided in the contractual arrangement, with the terminal building to be used only as an airport passenger terminal, the terminal land to be used for the purposes necessary for, ancillary to and/or related with the operation of an international airport and the aerodrome sites to be used for such commercial, industrial or administrative purposes as the Company may consider appropriate, provided that such activities are related or ancillary to the aviation industry or are designed to provide facilities and services which are complimentary to the operation of the terminal site and all the activities therein carried out.
The lease terms under IFRS 16 for the temporary emphyteuses and the related aerodrome licence do not involve significant judgment as there are no extension, termination or purchase options from the perspective of the Group beyond the non-cancellable and enforceable period, with clauses for remote contingencies that are customary for the type of lease in place. The lease terms range from 58 years to 65 years, which are governed under a concession which was granted by the Government and which commenced in 2002 and ends in 2067 with a smaller lease being granted for the period 2010 to 2067.
For leases of low value assets, which relate to the multi-function printers situated in the administration offices, the Company has applied the optional recognition exemptions to not recognise right-of-use assets as at the date of initial application of the standard. This expense is presented in Note 9.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
66
33.Lease Arrangements (continued)
The movements during the current year and the comparative year in relation to right-of-use assets classified as property, plant and equipment are disclosed below:
Carrying
One-time
Depreciation
Carrying
The Group & The Company
amount
Adjustment
charge for
amount
(in EUR)
1 Jan 2024
the year
31 Dec 2024
Land held on temporary emphyteusis
59,144,975
(5,741)
(1,352,744)
57,786,490
Related aerodrome licence
9,639,050
-
(221,587)
9,417,463
Buildings
19,801,021
-
(1,074,702)
18,726,319
Total right-of-use assets classified as property, plant and equipment
88,585,046
(5,741)
(2,649,033)
85,930,272
Carrying
Depreciation
Carrying
The Group & The Company
amount
charge for
amount
(in EUR)
1 Jan 2023
the year
31 Dec 2023
Land held on temporary emphyteusis
60,503,471
(1,358,496)
59,144,975
Related aerodrome licence
9,860,637
(221,587)
9,639,050
Buildings
20,875,723
(1,074,702)
19,801,021
Total right-of-use assets classified as property, plant and equipment
91,239,831
(2,654,785)
88,585,046
The movements during the current year and the comparative year in relation to lease liabilities are disclosed below:
Carrying
Lease
Carrying
The Group & The Company
amount
Cash
Interest
amount
(in EUR)
1 Jan 2024
Outflows
Expense
31 Dec 2024
Lease Liability
54,374,185
(1,812,688)
2,157,881
54,719,378
Carrying
Lease
Carrying
The Group & Company
amount
Cash
Interest
Amount
(in EUR)
1 Jan 2023
Outflows
Expense
31 Dec 2023
Lease Liability
54,042,492
(1,812,688)
2,144,381
54,374,185
Expenses relating to low value assets for which the recognition exemption is applied are presented in Note 9.
Lease liabilities are classified as non-current in the Statement of Financial Position to the extent that over the next 12 months interest will exceed the contractual cash payments.
The Group classifies all interest payments in relation to the lease liability within its operating cash flows in the Statement of Cash Flows to the extent that interest during the period exceeds the contractual cash payments.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
67
33.Lease Arrangements (continued)
The Group and the Company as lessor
The table below represents the lease income under operating leases recognised as income for the year:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Lease income under operating leases recognised as income for the year
7,121,650
7,006,490
3,597,723
3,457,313
Lease income under operating leases relating to variable lease payments that do not depend on an index or a rate
24,720,536
20,666,475
25,176,655
20,964,531
Total lease income
31,842,186
27,672,965
28,774,378
24,421,844
Below is the ‘Minimum Lease Payment Receivables’ table showing the amounts to be received from next year onwards:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Year 1
16,429,837
16,491,844
13,473,762
12,558,868
Year 2
12,198,177
15,405,328
10,878,389
12,811,036
Year 3
3,465,273
11,242,772
2,425,142
10,437,009
Year 4
2,112,984
2,831,460
1,918,981
2,088,507
Year 5
1,889,689
1,995,761
1,976,248
1,771,307
Year 6 and onwards
15,240,709
16,016,735
16,444,291
17,337,327
51,336,669
63,983,900
47,116,813
57,004,054
Operating lease income receivable by the Group includes income from leases of portions of land held on temporary emphyteuses and classified as property, plant and equipment. The term of the principal non-cancellable lease arrangements ranges between 5 months and 25 years and the lease receivables are adjusted upwards periodically by a specified rate.
Operating lease income receivable by the Group also includes the lease of the investment property built on a portion of land held on temporary emphyteuses. The term of the principal non-cancellable lease arrangements ranges between 1 month and 12 years. The leases include periodic adjustments by a specified rate and variable portions linked to the turnover of the lessees.
Operating lease income receivable by the Group also includes the lease of office and parking spaces inside the multi-storey car park built on a portion of land held on temporary emphyteuses. The term of the principal non-cancellable lease arrangements is of 8 months. The leases include periodic adjustments by a specified rate.
Operating lease income also includes income from the lease to tenants of commercial property within the building held on temporary emphyteusis. The terms of these leases range from 2 months to 25 years. The leases include periodic adjustments by a specified rate and variable portions linked to the turnover of lessees.
Operating lease income receivable by the Company also includes income from the lease to a subsidiary of certain carparks situated on portions of land held on temporary emphyteusis and classified as property, plant and equipment and income from the lease of the land on which the investment property is built, which investment property is also situated on portions of land held on temporary emphyteusis. The leases terminate in 2048 and 2034 respectively. One of the leases includes periodic adjustments by a specified rate and the other comprises fixed annual amounts and variable portions linked to the turnover of the lessee.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
68
33.Lease Arrangements (continued)
Where the lease income is adjusted periodically by a specified rate, the lease income is recognised on a straight-line basis over the lease term.
The income above includes an amount of EUR 3,142,525 (2023: EUR 3,283,623) generated by the Group in relation to the business centre classified as investment property as well as an amount of EUR 75,443 (2023: EUR 75,443) generated by the Company in relation to the corresponding right-of-use assets in relation to the land on which the business centre is located. The Group and the Company generate EUR 28,699,661 and EUR 28,698,935 (2023: EUR 24,389,342 and EUR 24,346,401), respectively, from subleasing right-of-use assets that are classified as property, plant and equipment.
All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have an option to purchase the property at the expiry of the lease period. The Group manages credit risk from operating lease contracts by implementing contractual terms that ensure that rentals are payable quarterly in advance. All leases include clauses to enable upward revision of the rental charge according to prevailing market conditions or at pre-fixed rates. In addition, the Group obtains security deposits from tenants, in the form of bank guarantees for the term of the lease.
34.Material Contracts
The material contracts entered into by the Company in the year ended 31 December 2024 with its current substantial shareholders and their related parties are the following:
The Government of Malta
(i)The terminal and other land lease agreements with Malita Investments plc for EUR 1,316,531 (2023: EUR 1,316,531);
(ii)Licence Fee payable to the Government of Malta for the airport operation amounting EUR 496,157 (2023: EUR 496,157);
(iii)The contract for contribution to the Malta Tourism Authority for EUR 232,937 (2023: EUR 232,937); the contracts for contributions payable towards the Route Development Fund that is administered by the Malta Tourism Authority for EUR 3,000,000(2023: EUR 4,000,000); no contracts materialised during the current year in relation to events and Cruise & Fly (2023: EUR 800,000 and EUR 400,000 respectively);
(iv)The provision of Air Navigation Services and other services by Malta Air Traffic Services Limited for an expense of EUR 1,000,000 (2023: EUR 929,611);
(v)The provision of Meteorological Services and other services to Malta Air Traffic Services Limited for revenue of EUR 743,689 (2023: EUR 743,688);
(vi)The contract with Enemed Co. Ltd for fuel throughput charges generated the amount of EUR 418,805 (2023: EUR 426,194) in revenue;
(vii)The concession agreements with Air Malta p.l.c. and KM Malta Airlines Ltd. and its subsidiaries that generated income of EUR 722,352 (2023: EUR 1,029,144); and
(viii)The contracts with Indis Malta Ltd. for the lease of land that generated income of EUR 1,134,663 (2023: EUR 1,105,591).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
69
35.Parent Company
For the purposes of IFRS 10 Consolidated Financial Statements, it is considered that Articles 58.2 and 58.7 of the Company's Articles of Association combine so as to give Malta Mediterranean Link Consortium Limited (“MMLC”), which has its registered office at Palazzo Pietro Stiges, 60 St. Christopher Street, Valletta, Malta, control over the Company. MMLC has a 40% equity interest in Malta International Airport p.l.c. (the “Company”).
Effective as at 26 November 2019, MMLC’s majority shareholders VIE (Malta) Limited (which has an equity interest of 57.1% in MMLC) and MMLC Holdings Malta Limited (previously SNC-Lavalin (Malta) Limited) (which has an equity interest of 38.75% in MMLC) merged, leading to VIE (Malta) Limited being MMLC’s majority shareholder with an equity interest of 95.85% in MMLC.
VIE (Malta) Limited also holds an additional 10.1% equity stake in the Company.
VIE (Malta) Limited is controlled by VIE International Beteiligungsmanagement GmbH (“VINT”), which also controlled MMLC Holdings Malta Limited until the merger in November 2019. VINT does not produce consolidated financial statements. The ultimate parent of the Company is Flughafen Wien AG, whose registered office is Postfach 1, A-1300 Wien-Flughafen. Flughafen Wien AG’s consolidated share in the Company amounts to 48.44%.
The financial results and financial position of the Company are included in the consolidated financial statements of Flughafen Wien AG. Copies of these consolidated financial statements may be obtained from Investor Relations department of Flughafen Wien or online.
36.Fair Values of Financial Assets and Financial Liabilities
At 31 December 2024 and 2023, the carrying amounts of financial assets and financial liabilities classified within non-current and current assets / liabilities respectively, comprising trade and other receivables, cash and cash equivalents, term deposits, investments in treasury bills, current loans receivable and trade and other payables approximated their fair values due to the short-term maturities of these assets and liabilities.
The fair values (Level 2) of non-current financial assets that are not measured at fair value and that carry a fixed rate of interest, comprising of loans receivable by the Company, are not materially different from their carrying amounts because they carry an arm’s length interest rate that is repriced periodically and the margin continues to be reflective of the credit risk of the borrower at the year-end (see Note 17).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
70
37.Financial Risk Management
The Group’s and the Company’s principal financial liabilities comprise of trade payables and lease liabilities. The principal recognised financial assets of the Group and the Company are trade receivables, loans receivable, term deposits and cash and cash equivalents.
The carrying amount of principal financial instruments are as follows:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Loans receivable
-
-
37,345,692
24,680,261
Trade receivables
18,681,182
20,907,477
20,462,260
22,575,309
Investments in treasury bills
-
14,699,519
-
14,699,519
Term deposit
45,000,000
37,000,000
45,000,000
37,000,000
Cash and cash equivalents
19,914,918
24,674,829
18,585,279
21,759,733
Lease liabilities
(54,719,378)
(54,374,185)
(54,719,378)
(54,374,185)
Trade and other payables
(69,471,694)
(53,660,874)
(70,285,115)
(52,597,817)
Net gains/(losses) arising from these financial instruments are classified as follows:
The Group
The Company
(in EUR)
2024
2023
2024
2023
Recorded in profit or loss:
Loans receivable - interest
-
-
713,298
1,433,469
Trade and other receivables - ECL
(209,814)
(352,978)
(326,472)
(334,605)
Investments in treasury bills - interest
111,766
728,996
111,766
728,996
Term deposit – interest
1,660,331
752,702
1,660,331
752,702
Financial liabilities at amortised cost - interest
(2,149,107)
(2,172,154)
(2,149,107)
(2,172,154)
The main risks arising from the Group’s and the Company’s financial instruments are changes in interest rate, liquidity risk and credit risk, which are summarised below.
Interest Rate Risk
The Group and the Company have term deposits as disclosed in Note 27 and cash at bank balances as disclosed in Note 28. The Company has also granted interest-bearing loans to its subsidiaries as disclosed in Note 17. No treasury bills were held at the end of the current year.
The Group and the Company are exposed to cash flow interest rate risk on financial instruments carrying a floating interest rate. Management monitors the movement in interest rates and, where possible, reacts to material movements in such rates by restructuring its investing and financing structure.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the Group’s and Company’s profit before tax. The Group and Company consider the reasonably possible changes in interest rates to be a change in 25 basis points.
Increase or
Effect on Profit before tax
Decrease
The Group
The Company
(basis points)
(in EUR)
(in EUR)
2024
+ 25
89,333
178,682
- 25
(89,333)
(178,682)
2023
+ 25
115,742
169,298
- 25
(115,742)
(169,298)
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
71
37.Financial Risk Management (continued)
The effect on profit takes into consideration both interest payable and interest receivable based on the financial instruments as disclosed in Notes 17, 26, 27 and 28.
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group or the Company. Financial assets which potentially subject the Group and / or the Company to concentrations of credit risk, consist principally of the following:
•Loans receivable from subsidiary undertakings
•Loan commitments to subsidiary undertakings
•T rade and other receivables
•Term deposits
•Cash and cash equivalents
Such financial assets are presented net of a loss allowance, where applicable. The maximum exposure to credit risk for recognised financial assets is the carrying amounts of each class of asset as disclosed in Notes 17, 20, 26, 27 and 28 respectively. The maximum exposure to credit risk for the loan commitment is disclosed in Note 17.
Management considers the quality of its financial assets as being acceptable, as further detailed below.
Allowances for provision for impairment on financial assets measured at amortised cost are made in line with the accounting policies outlined in Note 40.
Trade and other receivables
Credit risk with respect to trade and other receivables is managed and assessed through the adherence to credit control procedures, which include client acceptance procedures, and is also limited through the number of customers comprising the Group’s and Company’s debtor base. Outstanding trade receivables are regularly monitored by management.
For trade receivables the Group and the Company have applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime ECL.
Where the Group has reasonable and supportable information that is available without undue cost or effort to measure LT-ECLs on an individual instrument basis, such an individual assessment is carried out. LT-ECLs on the remaining financial assets are measured on a collective basis, using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
72
37.Financial Risk Management (continued)
Trade receivables – tested individually:
LT-ECL (credit-impaired but not POCI)
The Group
The Company
(in EUR)
2024
2023
2024
2023
Internal rating grades
Performing
-
-
-
-
In default
118,337
15,355
108,713
6,281
Gross carrying amount at 31 December
118,337
15,355
108,713
6,281
Loss allowance at 31 December
(118,337)
(15,355)
(108,713)
(6,281)
Net carrying amount at 31 December
-
-
-
Trade receivables – tested collectively:
The table below details the risk profile of trade receivables for which a provision matrix is applied:
The Group
Expected Credit Loss Rate
Gross Carrying Amount
LT-ECL
Net Carrying Amount
31 December 2024
(in EUR)
Current (not past due)
0.6%
9,660,810
57,965
9,602,845
30 to 90 Days
0.7%
7,699,025
53,893
7,645,132
91 to 180 Days
8.7%
1,124,534
97,834
1,026,700
181 to 270 Days
31.2%
501,887
156,589
345,298
271 to 360 Days
62.3%
162,354
101,146
61,208
> 360 Days
100.0%
664,456
664,456
-
19,813,066
1,131,883
18,681,183
The Group
Expected Credit Loss Rate
Gross Carrying Amount
LT-ECL
Net Carrying Amount
31 December 2023
(in EUR)
Current (not past due)
1.0%
10,604,958
106,050
10,498,908
30 to 90 Days
1.2%
7,944,726
95,336
7,849,390
91 to 180 Days
10.5%
2,491,161
261,572
2,229,589
181 to 270 Days
34.4%
448,185
154,176
294,009
271 to 360 Days
72.5%
129,385
93,804
35,581
> 360 Days
100.0%
314,112
314,112
-
21,932,527
1,025,050
20,907,477
The same ECL Rates are applied to the Company’s debtors with a gross carrying amount of EUR 21,497,286 (2023: EUR 23,386,294), resulting in a net carrying amount of EUR 20,462,260 (2023: EUR 22,575,309) and a collective LT-ECL of EUR 1,035,026 (2023: EUR 810,986) of which an amount of EUR 608,608 (2023: EUR 256,419) is in relation to trade debtors that are more than 360 days past due.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
73
37.Financial Risk Management (continued)
Cash and cash equivalents
The cash at bank balances held by the Group and the Company are disclosed in Note 28. Currently the Group holds its cash at bank balances with reputable and investment grade rated banking institutions.
12m-ECL
The Group
The Company
(in EUR)
2024
2023
2024
2023
External rating grades
BBB- (stable) (S&P)
15,123,046
-
15,123,046
-
BBB+ (stable) (S&P)
3,940,641
19,481,017
2,611,002
16,565,921
A- stable (S&P)
636,526
3,000
636,526
3,000
A stable (S&P)
182,545
2,105,476
182,545
2,105,476
A (stable) (S&P)
28,572
3,085,336
28,572
3,085,336
Not rated
3,588
-
3,588
-
Gross/Net Carrying Amount at 31 December
19,914,918
24,674,829
18,585,279
21,759,733
On the basis of the low credit risk exemption, the resulting 12 m-ECL in terms of IFRS 9 are not considered to be material.
Treasury Bills
The Group did not hold treasury bills with the Government of Malta as disclosed in Note 26 at year-end.
12m-ECL
The Group
The Company
(in EUR)
2024
2023
2024
2023
External rating grades
A- stable (S&P)
-
14,699,519
-
14,699,519
Gross/Net Carrying Amount at 31 December
-
14,699,519
-
14,699,519
Term Deposits
The Group holds its term deposits with the same reputable and investment grade rated banking institutions as its cash and cash equivalents as outlined above.
12m-ECL
The Group
The Company
(in EUR)
2024
2023
2024
2023
External rating grades
BBB+ (stable) (S&P)
15,000,000
15,000,000
15,000,000
15,000,000
A2 stable (S&P)
15,000,000
15,000,000
15,000,000
15,000,000
A stable (S&P)
15,000,000
7,000,000
15,000,000
7,000,000
Gross/Net Carrying Amount at 31 December
45,000,000
37,000,000
45,000,000
37,000,000
On the basis of the low credit risk exemption, the resulting 12 m-ECL in terms of IFRS 9 are not considered to be material.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
74
37.Financial Risk Management (continued)
Loans receivable
Loans receivable and undrawn loan commitments of the Company are disclosed in Note 17. The credit risk is contained within the Group.
12m-ECL
The Company
(in EUR)
2024
2023
Internal rating grades
Performing
37,345,692
24,680,261
Gross/Net Carrying Amount at 31 December
37,345,692
24,680,261
The Company determined that the loans and the undrawn loan commitments did not result in a significant increase in credit risk, as compared to the risk of default on initial recognition and accordingly a 12m-ECL applies. On the basis of the expected manner of recovery of the loans and the possible alternative strategies available to the borrower, the Company concluded that full recovery is expected, taking into consideration the financial position of the respective counterparty and, where applicable, forward-looking information that addresses the future prospects of the industries in which the borrower operates and information that relates to the borrower’s core operations. Consequently, the resulting 12m-ECL in terms of IFRS 9 are not considered to be material.
Liquidity Risk
The tables below summarise the maturity profile of the Group’s and Company’s financial liabilities as at 31 December 2024 and 2023 based on contractual undiscounted payments.
The Group
31 December 2024
Carrying Amount
Gross Cash Flows
(in EUR)
< 1 year
1-5 Years
> 5 years
Lease Liability
54,719,378
128,765,662
1,819,761
7,765,670
119,180,231
Other payables
6,125,744
6,125,744
402,585
5,723,159
-
Accruals
55,925,417
55,925,417
55,925,417
-
-
Trade payables
7,425,180
7,425,180
7,425,180
-
-
124,195,719
198,242,003
65,572,943
13,488,829
119,180,231
The Group
31 December 2023
Carrying Amount
Gross Cash Flows
(in EUR)
< 1 year
1-5 Years
> 5 years
Lease Liability
54,374,185
130,578,350
1,812,688
7,575,263
121,190,399
Other payables
2,479,903
2,479,903
521,995
1,957,908
-
Accruals
44,718,779
44,718,779
44,718,779
-
-
Trade payables
6,466,841
6,466,841
6,466,841
-
-
108,039,708
184,243,873
53,520,303
9,533,171
121,190,399
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
75
37.Financial Risk Management (continued)
The Company
31 December 2024
Carrying Amount
Gross Cash Flows
(in EUR)
< 1 year
1-5 Years
> 5 years
Lease liability
54,719,378
128,765,662
1,819,761
7,765,670
119,180,231
Other payables
5,683,049
5,683,049
364,504
5,318,545
-
Accruals
54,208,797
54,208,797
54,208,797
-
-
Trade payables
10,310,392
10,310,392
10,310,392
-
-
124,921,616
198,967,900
66,703,454
13,084,215
119,180,231
The Company
31 December 2023
Carrying Amount
Gross Cash Flows
(in EUR)
< 1 year
1-5 Years
> 5 years
Lease liability
54,374,185
130,578,350
1,812,688
7,575,263
121,190,399
Other payables
2,118,470
2,118,470
348,193
1,770,277
-
Accruals
44,083,899
44,083,899
44,083,899
-
-
Trade payables
6,318,651
6,318,651
6,318,651
-
-
106,895,205
183,099,370
52,563,431
9,345,540
121,190,399
The Group monitors and manages its risk to a shortage of funds by monitoring forecast and actual cash flows.
Capital Management
One of the objectives of the Group and the Company is to ensure that it maintains a strong credit rating and healthy capital ratios by means of proper management of its capital. The Group and the Company manage their capital structure and adjust it, in light of changes in economic conditions. No changes were made in the objectives and processes during the years ended 31 December 2024 and 31 December 2023.
The Company monitors its capital requirement on a periodic basis considering its current requirements. Capital primarily includes equity attributable to the equity holders. Based on recommendations of the directors, the Group and the Company balance their overall capital structure through the payments of dividends, new share issues as well as the issue of new debt or the redemption of existing debt.
Other than as disclosed in that Note, the Group’s and Company’s policy in managing capital has remained unchanged from the prior year.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
76
38.Events after the Reporting Period
All events occurring after the balance sheet date until the date of authorisation for issue of these financial statements and that are relevant for valuation and measurement as of 31 December 2024 for the Group and the Company, such as outstanding legal proceedings or claims for damages and other obligations or impending losses that must be recognised or disclosed in accordance with IAS 10 are included in these consolidated financial statements. No relevant events after the reporting period occurred.
39.Comparative information
Comparative figures disclosed in the main components of these financial statements have been reclassified to conform with the current year’s presentation format for the purpose of fair presentation.
40.Material Accounting Policy Information
Scope of Consolidation
The consolidated financial statements include all subsidiaries, with the exception of Kirkop PV Farm Limited, as its economic significance and influence on the financial position, financial performance and cash flows of the Group is immaterial. The net liability position of Kirkop PV Farm Limited is under EUR 3,000 (2023: under EUR 3,000). Kirkop PV Farm Limited did not commence to trade by the balance sheet date.
The 2024 and 2023 consolidated financial statements include Malta International Airport p.l.c as well as three domestic subsidiaries that are controlled by Malta International Airport p.l.c.
Subsidiaries included in the consolidated financial statements 2024 and 2023 are Airport Parking Limited, Sky Parks Development Limited and Sky Parks Business Centre Limited. For financial information on these subsidiaries see Note 16.
The financial statements of the subsidiaries are prepared for the same reporting period as that of the Company, using consistent accounting policies. All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions and dividends are eliminated in full.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control or from the date of set-up under the control of the Company and continue to be consolidated until the date such control ceases.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
77
40.Material Accounting Policy Information (continued)
Property, Plant and Equipment
The Group’s and the Company’s property, plant and equipment are classified into the following classes – land held as temporary emphyteusis, related aerodrome licence, buildings, furniture, fixtures, plant and equipment, motor vehicles. Advance deposits paid to suppliers of property, plant & equipment are recognised as part of property, plant & equipment.
Upfront payments in relation to the temporary emphyteusis of the leasehold land and buildings are reclassified to right-of-use assets which is included under property, plant and equipment in terms of IFRS 16. The accounting policy for right-of-use assets is included below in the Section entitled ‘Leases’.
Property, plant and equipment also include the right-of-use assets in relation to the related licence over the aerodrome, which includes the Airfield. The management of the Airfield is considered to be integral to the use of the land and buildings held as temporary emphyteusis, with the Group having an obligation to manage the Airfield for the same duration of the emphyteusis. The Group considers the licence as being inseparable from the right to use the Airfield (being the tangible component). It is also not possible to split the right to operate the Airfield from the right to use the Airfield and the Group considers the use of the Airfield to be the most significant element of the transaction.
Property, plant and equipment are initially measured at cost. Such cost includes borrowing costs for long-term construction projects, if the recognition criteria are met. Subsequent costs are included in the asset’s carrying amount when it is probable that future economic benefits associated with the item will flow to the Group or the Company and the cost of the item can be measured reliably. Expenditure on repairs and maintenance of property, plant and equipment is recognised as an expense when incurred.
Subsequent to initial recognition, property, plant and equipment are stated at cost less any accumulated depreciation and any accumulated impairment losses.
Property, plant and equipment are derecognised on disposal or when no future economic benefits are expected from their use or disposal. Gains or losses arising from derecognition represent the difference between the net disposal proceeds, if any, and the carrying amount. Any gains or losses arising on derecognition are included in profit or loss in the year the asset is derecognised.
Properties in the Course of Construction
Properties in the course of construction for production supply or administrative purposes are classified as property, plant and equipment and are carried at cost less any identified impairment loss. Cost includes professional fees, and for qualifying assets, borrowing costs capitalised in accordance with the Company's accounting policy on borrowing costs. Depreciation of these assets, on the same basis as other property assets, commences when the assets are available for use.
Properties in the course of construction for future use as investment property are classified as investment property. Existing investment property that is being redeveloped for continued future use as investment property continues to be classified as investment property.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
78
40.Material Accounting Policy Information (continued)
Investment Property
Investment property also includes right-of-use assets in terms of IFRS 16. The accounting policy for right-of-use assets is included below in the Section entitled ‘Leases’.
Investment property is property held to earn rentals or for capital appreciation or both. Investment property is recognised as an asset when it is probable that the future economic benefits that are associated with the investment property will flow to the entity and the cost can be measured reliably. Investment property is initially measured at cost, including transaction costs. Subsequent to initial recognition, investment property is stated at cost less any accumulated depreciation and any accumulated impairment losses.
Investment property is derecognised on disposal or when it is permanently withdrawn from use and no future economic benefits are expected from its disposal. Gains or losses on derecognition represent the difference between the net disposal proceeds, if any, and the carrying amount, and are recognised in profit or loss in the period of derecognition.
Depreciation
Depreciation commences when the depreciable assets are available for use and is charged to profit or loss, so as to write off the cost less any estimated residual value, over their estimated useful lives (unless this exceeds the end of any applicable leases or emphyteusis, in which case the accounting policy in the Section entitled ‘Leases’ applies), using the straight-line method, on the following bases:
Land held on temporary emphyteusis
by equal annual instalments over the remaining term of the emphyteusis
Buildings classified within Property, Plant and Equipment
2% to 5% per annum
Furniture, fixtures, plant and equipment classified within Property, Plant and Equipment
10% to 33 1/3% per annum
Motor vehicles classified within Property, Plant and Equipment
20% per annum
Investment property (other than the land component)
5% to 15% per annum
Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset.
The depreciation method applied, the residual value and the useful life are reviewed at each financial year end and adjusted prospectively, as appropriate.
Investments in Subsidiaries
A subsidiary is an entity that is controlled by the Company. The Company controls an investee when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Investment in subsidiaries in the separate financial statements of the Company is accounted for on the basis of the direct equity interest and is stated at cost less any provisions for impairment, where in the opinion of the directors, any impairment in value has taken place. Dividends from the investment are recognised in profit or loss.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
79
40.Material Accounting Policy Information (continued)
Financial Instruments
Financial assets and financial liabilities are recognised when the Group entities become a party to the contractual provisions of the instrument. Unless otherwise stated below, financial assets and financial liabilities are initially recognised at their fair value plus directly attributable transaction costs for all financial assets or financial liabilities not classified at fair value through profit or loss.
Financial assets and financial liabilities are offset, and the net amount presented in the Statement of Financial Position when the Group entities have a legally enforceable right to set off the recognised amounts and intend either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or when the entity transfers the financial asset and the transfer qualifies for derecognition. Financial liabilities are derecognised when they are extinguished. This occurs when the obligation specified in the contract is discharged, cancelled or expires.
Financial Assets
This accounting policy is in relation to the following financial assets:
•Trade and other receivables
•Term deposits
•Treasury Bills
•Cash and cash equivalents
•Loans receivable
These assets are held for collection of contractual cash flows whereby these cashflows represent solely payments of principal and interest hence these financial instruments are subsequently carried at amortised cost. Interest income from these financial assets is included in profit or loss under investment income using the effective interest rate method. Any gain or loss on derecognition is also recognised in profit or loss. Trade receivables which do not have a significant financing component are initially measured at their transaction price and are subsequently stated at their nominal value less any loss allowance for expected credit losses.
Impairment of Financial Assets
Credit losses are determined based on the ECL model. The ECL model applies to financial assets measured at amortised cost, debt investments at FVOCI, lease receivables and contract assets, but not to investments in equity instruments. The amount of ECLs is updated at each reporting date to reflect changes in credit risk since the initial recognition.
ECLs are probability-weighted estimates of credit losses with the respective risks of a default occurring as the weights. Credit losses are measured at the present value of all expected cash shortfalls. ECLs are discounted at the effective interest rate of the financial asset. The measurement of ECLs is a function of the probability of default, loss given default (that is, the magnitude of the loss if there is a default) and the exposure at default.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
80
40.Material Accounting Policy Information (continued)
The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information, where applicable. Forward-looking information considered includes economic and industry indicators such as GDP, unemployment rates and/or industry projections as well as factors that are specific to the debtors, unless the effect is considered to be immaterial.
ECLs are determined by means of a three-stage model for impairment (the general approach) based on changes in credit risk since initial recognition.
•Stage 1 includes financial instruments that have not had a significant increase in credit risk since initial recognition or that have low credit risk at the reporting date. For these assets, 12-month ECLs (12-M-ECLs) are recognised. 12-M ECLs are the ECLs that result from default events that are possible within 12 months after the reporting date.
•Stage 2 includes financial instruments that have had a significant increase in credit risk since initial recognition - unless they have low credit risk at the reporting date - but that do not have objective evidence of impairment. For these assets, lifetime ECLs (LT-ECLs) are recognised. LT-ECLs are the ECLs that result from all possible default events over the expected life of a financial asset.
•Stage 3 includes financial assets that have objective evidence of impairment at the reporting date. For these assets, LT-ECLs are recognised. A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Impairment gains or losses are recognized in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.
Loss allowances are measured according to the above outlined three-stage model (the general approach) except for trade receivables and contract assets that do not contain a significant financing component or for which the practical expedient for contracts that are one year or less is applied. For these financial assets the simplified approach is applied and LT-ECLs are recognized.
Simplified approach
The Group applies the simplified approach for trade receivables and contract assets that do not contain a significant financing component. The Group’s trade receivables are of a short-term nature as they are based on credit terms of less than one year and, thus, do not include a significant financing component.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
81
40.Material Accounting Policy Information (continued)
Where the Group does not have reasonable and supportable information that is available without undue cost or effort to measure LT-ECLs on an individual instrument basis and in order to ensure that LT-ECLs are recognised before an asset becomes credit-impaired or an actual default occurs, LT-ECLs on the remaining financial assets are measured on a collective basis.
In such instances and where appropriate, the financial instruments are grouped on the basis of shared credit risk characteristics and the LT-ECLs are estimated using a provision matrix based on actual credit loss experience over past years, which is adjusted to reflect current conditions and the Group’s view of economic conditions over the expected lives of the receivables. Such adjustments are based on factors that are specific to the debtors and economic and industry indicators such as GDP, unemployment rates and/or industry projections, where applicable, unless the effect is considered to be immaterial. For the purpose of the provision matrix, loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency over a selected period, taking into consideration the applicable credit terms for such debtors and the past due status. Unless the effect is immaterial, for receivables after 360 days, the loss rate is adjusted to take into consideration the proportion of actual recoveries over the selected period.
Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort.
In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition: an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating, significant deterioration in external market indicators of credit risk for a particular financial instrument, existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the borrower’s ability to meet its debt obligations, an actual or expected significant deterioration in the operating results of the borrower, an actual or expected significant adverse change in the regulatory, economic, or technological environment of the borrower that results in a significant decrease in the borrower’s ability to meet its debt obligations.
Forward-looking information considered includes economic and industry indicators such as GDP, unemployment rates and/or industry projections as well as factors that are specific to the debtors, unless the effect is considered to be immaterial.
Irrespective of the outcome of the above assessment, it is presumed that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless there is reasonable and supportable information, that is available without undue cost or effort, that demonstrates otherwise.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
82
40.Material Accounting Policy Information (continued)
Despite the aforegoing, it is assumed that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if i) the financial instrument has a low risk of default, ii) the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and iii) adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. A financial asset is considered to have low credit risk when it has an internal or external credit rating of ‘investment grade’ as per globally understood definitions. The Group and the Company have applied the low credit risk assumption for the following classes of financial assets – cash at bank with an external credit rating of Investment grade.
Definition of default
For internal credit risk management purposes, the Group considers it as constituting an event of default when historical experience or information indicates that a financial asset is generally not recoverable as the debtor is unlikely to pay its creditors in full, without taking into account any collateral held by the Group or the Company.
Irrespective of the above analysis, default is considered to have occurred when a financial asset is more than 90 days past due unless reasonable and supportable information is available to demonstrate that a more lagging default criterion is more appropriate. The Group and the Company rebut the 90 days past due presumption for trade receivables since they have reasonable and supportable information to demonstrate that a more lagging default criterion of 360 days past due is more appropriate.
Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: significant financial difficulty of the issuer or the borrower, a breach of contract, such as a default or delinquency in interest or principal payments, the probability to enter bankruptcy or other financial reorganisation, the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider, the disappearance of an active market for that financial asset because of financial difficulties.
Write-off policy
The Group and the Company write off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
83
40.Material Accounting Policy Information (continued)
Loan commitments
For loan commitments, the date that the Company becomes a party to the irrevocable commitment is considered to be the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing whether there has been a significant increase in the credit risk since initial recognition of a loan commitment, the Company considers changes in the risk of a default occurring on the loan to which a loan commitment relates. For undrawn loan commitments, the ECL is the present value of the difference between the contractual cash flows that are due to the Company if the holder of the loan commitment draws down the loan, and the cash flows that the Company expects to receive if the loan is drawn down. For loan commitments, the loss allowance is recognised as a provision.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average method and comprises expenditure incurred in acquiring the inventories and other costs incurred in bringing the inventories to their present location and condition. Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs of completion.
Revenue Recognition
The Group and the Company generate income from regulated revenue, unregulated revenue and leases.
•Regulated revenue comprises income from aviation services which arise from income from passenger services charges and aircraft landing and parking fees.
•Unregulated revenue consists of security fees, PRM charges, income from ground handling charges, certain car parking revenue, income from VIP services as well as meteorological services and other income.
Revenue from operating leases reflects all income from renting office, retail, food and beverage, and advertising space including commissions based on sales as well as income from renting certain car parks. The accounting policies for this revenue stream are addressed under “Leases – the Group as a lessor” below.
The remainder of this Note addresses regulated and unregulated revenue from contracts with customers.
Revenue from contracts with customers is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Group and the Company recognise such revenue when (or as) they satisfy a performance obligation by transferring control of a promised good or service to the customer.
Regulated revenue
Regulated revenue constitutes income based on fees that are subject to the Airport Economic Regulations. These fees are charged to airlines and aircraft operators for the use of the airport infrastructure and include passenger service charges as well as landing and parking fees.
The performance obligation is to make the airport available as and when each airline makes use of it. The transaction price follows a set fee structure and is based on a variety of underlying metrics, such as the number of departing passengers, and the maximum take-off weight, which metrics become known by the time the services are provided and thus no significant estimates are required in this respect.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
84
40.Material Accounting Policy Information (continued)
In determining the transaction price, consideration is taken of variable fee-reducing rebates based on incentive agreements. Incentives are deducted from revenue in full and are included within the line item ‘Trade and other payables’. Any such incentives which are not taken up are recognised as revenue only when it is highly probable that a significant reversal will not occur, that is, when the uncertainty associated with the incentives is subsequently resolved.
The performance obligation in relation to regulated revenue is satisfied at a point in time. A receivable is recognised as the services are provided and included in the line item ‘Trade and other receivables’ until the actual payment is made by the respective customers.
In determining the transaction price, consideration is also made of contributions payable to airlines through a government entity, in an effort to improve the number of passengers departing from the airport, thus resulting in additional revenues to the Company and the Group. Such contributions are payable to an Air Route Development Fund that is administered by the government entity, with a particular focus being made on the timing and destination of strategic routes which result in increased revenues. The allocations that are made by this Fund to the respective airlines are subject to the satisfaction by the airlines of the conditions attaching to eligibility for such contributions and accordingly any revenues disclosed in the respective Notes are net of any such contributions. The amounts payable by the Company and the Group to the Fund are non-refundable and vary with the number of passenger departures, subject to a fixed cap. These amounts are treated as a reduction of the transaction price (and therefore, of revenue) since such payments are not considered to be in exchange for a distinct good or service that the customers, or the government entity, transfer to the Company or the Group. These amounts are included within the line item ‘Trade and other payables’ until they are settled. No estimates are required in this regard since the extent of the consideration payable is dependent on the number of passenger departures and thus corresponds to the Company’s and the Group’s efforts to satisfy its performance obligation, with such allocation being consistent with the objective of allocating the transaction price in an amount that depicts the amount of consideration to which the Company and the Group expect to be entitled in exchange for transferring the promised services to the customers.
Unregulated revenue
Unregulated revenue is income based on charges that are not regulated, but subject to fee structures that are negotiated with the Group’s customers. Fees for each service are uniform among all customers.
•Security fees are charged to airlines in order to recover costs relating to the security function of the Group. The performance obligation is to provide a safe and secure environment for all stakeholders of the airport campus. The transaction price is represented by a set fee that is based on the number of departing passengers of an airline or aircraft operator. The performance obligation is satisfied over time.
•PRM fees are charged to airlines in order to recover costs emanating to the Group for the provision of assistance to persons with reduced mobility (PRM) in line with Regulation (EC) 1107/2006. The performance obligation is to arrange the required services for persons with reduced mobility on behalf of the airline or aircraft operator. The transaction price is represented by a set fee that is based on the number of departing passengers of an airline or aircraft operator. The performance obligation is satisfied at a point in time.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
85
40.Material Accounting Policy Information (continued)
•Ground handling concession income is revenue from ground handling and infrastructure providers for the right to provide their services (ground handling, fuelling) within the airport perimeter for the duration of the respective contracts. The performance obligation is to make the maintained airport infrastructure and equipment available so that the ground handling provider is able to provide its services to airlines and aircraft operators. The transaction price follows a fee structure that is based on a variety of underlying metrics, such as the number of departing passengers, aircraft movements, maximum take-off weight, kilograms of freight and mail and litres of fuel. The Group has determined that it provides a daily service of access that is distinct, with the uncertainty related to the consideration receivable being also resolved on that basis and accordingly no further estimates are required in this regard. The performance obligation is satisfied over time. A receivable is recognised as the services are provided and included in the line item “Trade and other receivables” until the actual payment is made by the respective ground handling provider.
•Car parking income primarily represents revenue generated through the provision of car parking spaces at the car parks within the airport perimeter, other than revenue from rental income resulting from the lease of car parks which is addressed by the accounting policy on leases. The performance obligation is to provide and maintain car parking space for the duration of the stay. The transaction price follows a pre-determined fee structure that is based on parking time and that is payable immediately upon use. The performance obligation is satisfied over time. Besides, income from the sale of car park access cards, which allow customers to make use of the car park over a fixed period of time, is recognised over time on straight-line basis for the duration of the contract.
•Income from VIP services primarily represents revenue generated through the provision of services, such as access to airport lounges and ancillary services (e.g. porterage, meet-and-greet). The Group’s performance obligation is to provide the services if and when requested by customers in line with underlying terms and conditions. The transaction price follows a fixed price structure. The performance obligation is satisfied over time. In addition, the Group issues membership cards that enable members to make use of a variety of VIP services and facilities provided by the airport, such as lounges and access to car parks, over a fixed period. Such revenue is recognised over time on a straight-line basis for the duration of the contract with any deferred income being recognised as a contract liability within the line item ‘Trade and other payables’.
•Revenue from meteorological services is generated from the provision of meteorological services to Malta Air Traffic Services (MATS). The Group’s performance obligation is to provide meteorological services in respect of air navigation as well as for public, maritime and agricultural purposes and to maintain the equipment and facilities necessary to do so over the specified contractual period. The transaction price is a contractually agreed amount recognised over the term of the agreement. The performance obligation is satisfied over time.
In addition to the above-mentioned revenue streams, the Group and the Company generate other income that is classified within unregulated revenue, which arises from a variety of services, such as the issuance of security passes, the provision of luggage trolleys, lost and found services and left luggage.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
86
40.Material Accounting Policy Information (continued)
Government Grants
Grants are recognised when there is reasonable assurance that all the conditions attached to them are complied with and the grants will be received. Grants related to income are recognised in the profit or loss over the periods necessary to match them with the related costs which they are intended to compensate on a systematic basis. Such grants are presented as part of profit or loss, by deducting them from the related expense. Grants related to assets are presented in the Statement of Financial Position as deferred income, which is recognised as income on a systematic basis over the useful life of the asset.
Deferred Income
Deferred income arising from the sale of terminal buildings that took place on the date of the privatisation of the Company in 2002 is transferred separately to the income statement in equal annual instalments over the remaining life of the underlying assets.
Leases
The Group as a lessee
For any contract entered into by the Group, it considers whether the contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets three key evaluations which are (1) whether the contract contains an identified asset; (2) whether the Group has the right to obtain substantially all of the economic benefits from use throughout the period of use; and (3) whether the Group has the right to direct the use of the identified asset throughout the period of use.
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance sheet.
The Group measures the lease liability at the lease commencement date at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease (if that rate is readily determined) or the Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed) less any incentives receivable, variable payments based on an index or rate (initially measured using the index or rate at the commencement date), amounts expected to be payable under a residual value guarantee and payments arising from purchase options or termination penalties reasonably certain to be exercised.
Variable lease payments not included in the measurement of the lease liability are recognised in profit or loss (unless the costs are included in the carrying amount of another asset) in the period in which the event or condition that triggers those payments occurs.
The right-of-use asset is initially measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made at or before the lease commencement date.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
87
40.Material Accounting Policy Information (continued)
Right-of-use assets are subsequently measured using the cost model. The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The Group also assesses the right-of-use asset for impairment when such indicators exist in which case the recoverable amount of the asset is estimated.
Subsequent to initial measurement, the liability is reduced for payments made and increased for interest (using the effective interest method). It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
The Group accounts for short-term leases and leases of low-value assets using the recognition exemptions. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight-line basis over the lease term or another systematic basis that is more representative of the pattern of the lessee’s benefit.
As a practical expedient, a lessee is permitted not to separate non-lease components from lease components, and instead account for any lease and associated non-lease components as a single lease component. The Group has not used this practical expedient. For contracts that contain a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Group does not present right-of-use assets separately from other assets in the statement of financial position. It includes such assets within the same line item as that within which the corresponding underlying assets would be presented if they were owned. Right-of-use assets are presented within Property, plant and Equipment and Investment Property. The Group presents lease liabilities separately from other liabilities in the Statement of Financial Position.
In the Statement of profit or loss and other comprehensive income, the Group presents interest expense on the lease liability separately from the depreciation charge for the right-of-use asset. The lease payments attributable to low value items and short-term leases for which the recognition exemption is applied, together with variable lease payments not included in the measurement of the lease liability, are presented within ‘other operating expenses.’
In the Statement of Cash Flows, the Group classifies cash payments for the principal portion of the lease liability within financing activities and the cash payments for the interest portion of the lease liability within operating activities.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
88
40.Material Accounting Policy Information (continued)
The Group as a lessor
As a lessor the Group classifies its leases as either operating or finance leases. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset and classified as an operating lease if it does not. Lease classification is made at inception of the lease, which was the earlier of the date of the lease agreement and the date of commitment by the parties to the principal terms and conditions of the lease.
Rentals receivable under operating leases are recognised as income in profit or loss on a straight-line basis over the lease term unless another systematic basis is more representative of the pattern in which use benefit derived from the leased asset is diminished.
When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
Furthermore, for a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract applying IFRS 15. With respect to modifications to an operating lease in which the Group is a lessor, such modifications are accounted for as a new lease from the effective date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease.
Employee Benefits
Employee benefits include short-term benefits and post-employment benefits.
Short-term employee benefits
The Group and the Company contribute towards the state pension fund in accordance with local legislation. The only obligation of the Group and the Company is to make the required contribution. Costs are expensed in the year in which they are incurred.
Retirement plans
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with estimations being carried out at each reporting date. Past service cost is recognised as an expense at the earlier of the following dates (a) when the plan amendment or curtailment occurs and (b) when the entity recognises related restructuring costs or termination benefits. The amount recognised in the Statement of Financial Position represents the present value of the expected future payments required to settle the obligation resulting from employee service in the current and prior periods. The service cost and the net interest on the net defined benefit liability are recognised in profit or loss.
Remeasurements of the net defined benefit liability, comprising actuarial gains and losses are recognised in other comprehensive income and are not reclassified to profit or loss in a subsequent period. Such remeasurements are reflected immediately in retained earnings.
Actuarial gains and losses are changes in the present value of the defined benefit obligation resulting from experience adjustments and the effects of changes in actuarial assumptions. Actuarial assumptions are an entity’s best estimates of the variables that will determine the ultimate cost of providing post-employment benefits.

Independent auditor’s report

To the Shareholders of Malta International Airport p.l.c.

Report on the audit of the financial statements

Our opinion

In our opinion:

● The Group financial statements and the Parent Company financial statements (the “financial statements”) of Malta International Airport p.l.c. give a true and fair view of the Group and the Parent Company’s financial position as at 31 December 2024, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and

● The financial statements have been prepared in accordance with the requirements of the Maltese Companies Act (Cap. 386).

##### Our opinion is consistent with our additional report to the Audit Committee.

##### What we have audited

Malta International Airport p.l.c.’s financial statements comprise:

● the Consolidated and Parent Company income statements and statements of comprehensive income for the year ended 31 December 2024;

● the Consolidated and Parent Company statements of financial position as at 31 December 2024;

● the Consolidated and Parent Company statements of changes in equity for the year then ended;

● the Consolidated and Parent Company statements of cash flows for the year then ended; and

● the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

##### Independence

We are independent of the Group and the Parent Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.

To the best of our knowledge and belief, we declare that non-audit services that we have provided to the parent company and its subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).

The non-audit services that we have provided to the parent company and its subsidiaries, in the period from 1 January 2024 to 31 December 2024, are disclosed in note 9 to the financial statements.

Our audit approach

#####

##### Overview

| Overall group materiality: €3,600,000, which represents 5% of profit before tax.
The audit carried out by the group auditor covered the parent company and the three subsidiaries consolidated as part of the Group.
Recognition of revenue

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

##### Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Overall group materiality | €3,600,000
How we determined it | 5% of profit before tax
Rationale for the materiality benchmark applied | We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users, and is a generally accepted benchmark. We chose 5% which is within the range of quantitative materiality thresholds that we consider acceptable.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €180,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

#### Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter | How our audit addressed the key audit matter
Recognition of revenue Revenue recognition has been selected as a key audit matter due to the significance of the amount to the consolidated income statement of Malta International Airport p.l.c.’s financial statements. Furthermore, the matter requires significant audit attention due to the various revenue streams and the manner in which each revenue stream is computed. The determination of revenue is complex in nature and treated as a significant risk in the audit. Revenue recognition is governed by IFRS 15 ‘Revenue from contracts with customers’ and IFRS 16 ‘Leases’. For the year ended 31 December 2024 the Group’s revenue amounted to €142,869,459 (2023: €120,247,948). Revenue is a key driver of the profitability before tax of the Group, which for the year ended 31 December 2024 amounted to €72,187,367 (2023: €62,248,619). The Group generates income from regulated revenue, unregulated revenue and leases. Regulated revenue comprises income from aviation services which arise from income from passenger services charges. Regulated revenue also comprises aircraft landing and parking fees which are based on maximum take-off weight and aircraft area. Unregulated revenue consists of security fees, PRM (persons with reduced mobility) charges and income from ground handling services which are also based on passenger numbers, and maximum take-off weight. Unregulated revenue also comprises certain car parking revenue, income from VIP services, recharges for utilities as well as meteorological services, fuel throughput charges, charges for the use of common areas and other income. Revenue from leases reflects all income from renting office, retail, food and beverage, and advertising space including commissions based on sales as well as income from renting certain car parks. The revenue recognition accounting policies are disclosed in note 40 to these financial statements. Further detail covering revenue can be found in note 6 to the financial statements. | We tested the recognition of revenue as follows: - We performed a detailed understanding of the revenue process including an understanding of the design and implementation of the manual and automated controls surrounding revenue recognition. - Our IT audit specialists have directed their efforts at systems and business processes that have a significant impact on financial reporting to ensure an appropriate level of control operates within the IT general control environment with targeted areas including overall IT management and governance, access to programs and data, computer operations, program changes and development. Furthermore, the IT audit specialists ensured that an appropriate level of automated and manual application controls are in place to support the processing of transactions by the key financial systems. - We reconciled revenue streams, including airport regulated and unregulated revenue, income from tenants through leasing and parking revenue, to listings extracted from operating systems. These listings were deemed to be key reports and therefore we performed testing on these listings to obtain comfort on the accuracy and completeness of these key reports. Key variables including passenger numbers, maximum take-off weight (“MTOW”) figures and aircraft parking area have been confirmed to third party supporting documentation and certificates. - We recomputed, based on the key reports tested as per above and through the use of a data science and analytics automation platform, the airport revenue derived from airlines and ground handlers based on passenger numbers, maximum take-off weight (“MTOW”) figures and aircraft parking area. - We tested relevant manual controls, mainly cash reconciliations performed by car park attendants and members of the finance team, relating to parking revenue which includes revenue collected through cash. - We tested a sample of other revenue transactions by agreeing the revenue to supporting documentation including contracts, invoices and cash receipts and ensuring that revenue is recognised appropriately. - We performed testing surrounding revenue recognised in the last few days of 2024 and initial days of 2025 to ensure that revenue is recognised in the correct period. Based on work carried out as detailed in the paragraphs above, we found revenue recognition to be appropriate and in line with the expected treatment of IFRS 15 ‘Revenue from contracts with customers’ and IFRS 16 ‘Leases’.

How we tailored our group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

The Group is composed of four components: Malta International Airport p.l.c. (the parent company) and its three wholly owned subsidiaries. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

Other information

The directors are responsible for the other information. The other information comprises the General Information, the Directors’ Report, the Statement of Directors’ Responsibilities, the Corporate Governance - Statement of Compliance and the Remuneration Report (but does not include the financial statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the Chairman’s Message, the Chief Executive Officer’s Review, information on strategy and employees, the Aviation Report, the Retail & Property Report, the Corporate Responsibility Report, and supporting key data, investments and outlook information, which is expected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

When we read the Chairman’s Message, the Chief Executive Officer’s Review, information on strategy and employees, the Aviation Report, the Retail & Property Report, the Corporate Responsibility Report, and supporting key data, investments and outlook information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance in accordance with International Standards on Auditing.

#### Responsibilities of the directors and those charged with governance for the financial statements

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

● Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

● Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6

We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of Malta International Airport p.l.c. for the year ended 31 December 2024, entirely prepared in a single electronic reporting format.

Responsibilities of the directors

The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.

Our responsibilities

Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.

Our procedures included:

● Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.

● Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.

● Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the Annual Financial Report for the year ended 31 December 2024 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.

Other reporting requirements

The Annual Financial Report and Financial Statements 2024 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.

The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.

Area of the Annual Financial Report and Financial Statements 2024 and the related Directors’ responsibilities | Our responsibilities | Our reporting
Directors’ report and Statement of Directors’ Responsibilities The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. | We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements. We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements. In addition, we are required to state whether, in the light of the knowledge and understanding of the Company and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements. | In our opinion: ● the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ● the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386). We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
Corporate Governance – Statement of Compliance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Company has complied with the provisions of the Code, presenting the extent to which the Company has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles. | We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements. We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97. We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures. | In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section.
Remuneration Report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. | We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. | In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
| Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion: ● adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. ● the financial statements are not in agreement with the accounting records and returns. ● we have not received all the information and explanations which, to the best of our knowledge and belief, we require for our audit. We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. | We have nothing to report to you in respect of these responsibilities.

Other matter – use of this report

Our report, including the opinions, has been prepared for and only for the Parent Company’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.

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Appointment

We were first appointed as auditors of the Company on 11 May 2022. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 3 years.

Stephen Mamo

Principal

For and on behalf of

PricewaterhouseCoopers

78, Mill Street

Zone 5, Central Business District

Qormi

Malta

24 February 2025