KUALA LUMPUR (Aug 28): Capital A Bhd (KL:CAPITALA) posted a net profit of RM1.45 billion for the second quarter ended June 30, 2025 (2QFY2025), marking its second straight quarter in the black, lifted by a significant RM853.3 million foreign exchange (forex) gain.
The group’s overall profit was driven by its aviation arm — presented as discontinuing operations due to the ongoing disposal exercise to AirAsia X Bhd (KL:AAX) — which contributed RM1.66 billion net profit, reversing a net loss of RM274.9 million a year earlier.
However, its continuing operations, consisting of the digital, logistics, engineering and travel platform businesses, remained in the red with a wider net loss of RM204.22 million, up from RM179.28 million previously.
Group revenue, which only takes into account the continuing operations, grew 22.7% year-on-year (y-o-y) to RM422.61 million from RM344.4 million, according to its Bursa Malaysia filing on Thursday.
Earnings per share surged to 33.5 sen for 2QFY2025, from a loss per share of 10.6 sen in 2QFY2024.
Segment-wise, the logistics arm Teleport contributed RM255 million revenue and RM24.6 million Ebitda, while engineering arm Asia Digital Engineering saw revenue climb 26% to RM219 million, generating RM56.4 million in Ebitda.
AirAsia Move, the group’s online travel platform, posted a 16% decline in revenue to RM107.1 million due to lower flight transactions, but maintained Ebitda at RM11.6 million through tighter cost control.
The board did not propose any dividend for the quarter under review.
As a result of the RM853.3 million forex gain, Capital A swung to a net profit of RM2.14 billion in the first half ended June 30, 2025, from a net loss of RM545.73 million a year ago. Its revenue grew 18.9% y-o-y to RM837.13 million during the period, from RM704.17 million.
Meanwhile, Capital A reiterated its plan to exit the Practice Note 17 (PN17) status by early November 2025, pending final regulatory approval.
Group CEO Tan Sri Tony Fernandes said the company remains focused on restoring its full aircraft fleet and expanding operations in the Philippines and Indonesia, with improved contribution from AirAsia Move expected by year-end.
“We are currently working on a rated bond and securing local debt to restructure our Covid-era financing, which has dragged our profits,” he said in a statement.
“On the aviation disposal, we are on the last leg of restructuring. At the moment, we’re in the process of responding to some feedback from the Thai SEC [Securities and Exchange Commission], and we hope to resolve any outstanding matters soon,” Fernandes added.
Shares of Capital A rose 4.5 sen or 5.7% to close at 83.5 sen on Thursday, giving it a market capitalisation of RM3.62 billion. Year to date, the stock has fallen more than 18%.
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theedgemalaysia.com