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Malta International Airport p.l.c.
C 12663
Annual Financial Report andFinancial 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 (“the 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 Movements
 
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
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%)
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 total 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, the airport segment contributed 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 total 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 Directors 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) & Treasury Bills
 
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 and 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 Gretzmachera non-beneficial interest1
Ms Rita Heissa non-beneficial interest2
Dr Cory Greenlanda 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)in 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)in 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 7th Feb until 17th Jul 2024
4 As from 11th Jul 2024
5 Until 24th 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 Gretzmachera non-beneficial interest6
Rita Heissa non-beneficial interest7
Cory Greenlanda 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:
CodeProvision
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”) Board of Directors, 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 Board of Directors and executive management is based on the Remuneration Policy adopted and approved by shareholders at the annual general meeting of 11 November 2020. This policy may be viewed on the Company’s website at https://www.maltairport.com/corporate/investors/publications/.
The Remuneration Policy
The Company’s Remuneration Policy determines the basis for remuneration of all members of the Board of Directors 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 Remuneration Policy 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 Board.
The overall remuneration of the Board distinguishes between the remuneration of the Non-Executive Directors and executive directors. In the case of the Non-Executive Directors, including the Chairman, 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 Board.
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 Board of Directors 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.
In 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 Remuneration Statement in line with the Remuneration Policy 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 Board. The Chairman’s honorarium reflects the role as the most senior non-executive director on the Board and as the person responsible, amongst others, for chairing Board meetings and co-ordinating Board assignments.
Non-Executive Directors who are also delegated to sit on a sub-committee of the Board 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 directors 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 Chairman 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 1st 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 1st January 2023 and 1st 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 Board. 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
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 GroupThe Company
(in EUR)Notes2024202320242023
Revenue6142,869,457 120,247,948 137,965,009 115,378,805
Staff costs11(17,198,709) (14,327,716) (16,681,645) (13,997,077)
Other operating expenses9(38,386,882) (30,670,557) (37,449,896) (29,757,301)
Impairment losses on financial assets20(209,814) (26,701) (326,472) (29,256)
Depreciation14/15(14,793,334) (12,567,502) (12,863,469) (10,697,872)
Release of deferred income arising on the sale of terminal buildings upon privatisation22283,659 283,603 283,659 283,603
Investment income71,772,097 1,481,698 2,485,395 2,915,167
Finance cost8(2,149,107) (2,172,154) (2,149,107) (2,172,154)
Profit before tax   72,187,36762,248,619 71,263,47461,923,915
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   46,339,15040,303,853 45,819,56340,103,077
       
Earnings per share attributable to the ordinary equity holders of the Group 29  0.3420.298 --
Statements of Comprehensive Income
    The Group The Company
(in EUR) Notes 2024 2023 20242023
Profit for the year attributable to the ordinary equity holders of the Company, net of tax   46,339,150 40,303,853 45,819,56340,103,077
Items that will not be reclassifiedsubsequently to profit or loss:     
Actuarial gain/(loss) on defined benefitpension 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 45,824,10340,079,185
Malta International Airport p.l.c.
Statements of Financial Position
As at 31 December 2024
34
   The Group The Company
(in EUR)Notes2024 2023 20242023
Assets   
Property, plant and equipment14241,469,362 202,120,085 227,076,303 187,265,334
Investment property1529,192,762 15,529,126 299,646 306,615
Investment in subsidiaries16- - 2,004,800 2,004,800
Loans receivable17- - 35,054,972 22,742,598
Other receivables201,871,084 1,900,124 2,021,223 1,974,970
Deferred tax assets184,960,485 5,546,733 5,031,654 5,346,063
Non-current assets 277,493,693 225,096,068 271,488,598 219,640,380
     
Inventories191,557,530 1,280,119 1,557,530 1,280,119
Loans receivable17-  - 2,290,720 1,937,663
Trade and other receivables2026,143,670 27,857,390 29,048,530 29,859,224
Short-term Treasury Bills26- 14,699,519- 14,699,519
Term deposits2745,000,000 37,000,000 45,000,000 37,000,000
Cash and cash equivalents2819,914,918 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 GroupThe Company
(in EUR)Notes2024202320242023
Equity and Liabilities     
Equity attributable to ordinary equity holders of the Company       
Share capital2533,825,000        33,825,000  33,825,00033,825,000
Retained earnings 179,015,978      157,026,288  176,267,954154,797,850
Total Equity 212,840,978      190,851,288  210,092,954188,622,850
     
Lease liability3354,719,378        54,374,185  54,719,37854,374,185
Deferred income224,725,128          5,049,058  4,725,1285,049,058
Other payables215,723,159          1,957,908  5,318,5451,770,277
Employee benefit obligations232,689,699          2,890,265  2,689,6992,890,265
Provision for MIA benefit fund24307,551  264,827  307,551264,827
Non-current liabilities68,164,915        64,536,243  67,760,30164,348,612
     
Trade and other payables2166,570,705        55,803,964  67,435,13953,712,808
Current tax liabilities 22,533,213        19,416,430  22,682,26319,492,368
Current liabilities 89,103,918        75,220,394  90,117,40273,205,176
Total Liabilities 157,268,833      139,756,637  157,877,703137,553,788
Total Equity and Liabilities 370,109,811      330,607,925  367,970,657326,176,638
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 2023
 
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 2023
 
33,825,000
 
157,026,288
190,851,288
Balance at 1 January 2024 33,825,000 157,026,288190,851,288
Profit for the year -46,339,15046,339,150
Other comprehensive income-4,5404,540
Total comprehensive income for the year -46,343,69046,343,690
Transactions with owners of the company:
Dividends (Note 13)-(24,354,000)(24,354,000)
Balance at 31 December 2024 33,825,000179,015,978212,840,978
The Company
 
Equity attributable to ordinary equity holders of the Company
(in EUR)
 
Share
 
Retained
 
 
 
capital
 
earnings
 
Total
Balance at 1 January 2023
 
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 2023
 
33,825,000
 
154,797,850
188,622,850
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 GroupThe Company
Notes2024202320242023
Cash flows from investing activities     
Purchase of PPE14(46,977,427)(37,747,232) (46,332,340)(37,589,808)
Additions to investment property15(15,482,793)(223,626) --
Investments in short-term treasury bills2614,699,51910,089,91914,699,51910,089,919
Investments in term deposits27(8,000,000)(17,500,000) (8,000,000)(17,500,000)
Payments for intracompany loans17--(14,603,094)-
Receipts from intracompany loans17-- 1,937,6633,790,720
Interest received71,769,414560,144 1,769,419560,144
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 paid13(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 incash and cash equivalents   (4,759,911)254,787(3,174,454)2,337,830
Cash and cash equivalentsat the beginning of the year   24,674,82924,420,04221,759,73319,421,903
Cash and cash equivalentsat the end of the year28 19,914,91824,674,82918,585,27921,759,733
Net Debt Reconciliation
All the movements in the Group’s and the Companys 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
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
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
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 Servicesprovided
 
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 Servicesprovided
 
 
 
 
 
 
 
 
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 Servicesprovided
 
 
 
 
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
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 definedbenefit 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
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
 
 
 
 
Motorvehicles
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 andequipment
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 subjectto operatingleases
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
 
 
 
RelatedAerodromeLicence
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 ontemporary emphyteusis
Not subjectto operatingleases
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.
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 within12 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 within12 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. Receivables 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 forretirement 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
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2024
60
23.Employee Benefit Obligations (continued)
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 forMIA benefit plan at 31 December
 
307,551
 
264,827
25.Share Capital
The Company
 
As at 31.12.2024 and 31.12.2023
 
 
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
 
-
 
-
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;
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.