Business

H1: Medview Airline records 27% profit growth

Nigerian’s leading domestic airline, Med-View Airline, recorded a 27 per cent growth in profit in its half year period ended June 30, 2017 at N857.3 million from N671.5 million in 2016.

Medview also posted revenue of N13.0 billion for the period, representing a growth of 49 per cent from N8.7 billion posted as revenue in half year 2016.

The operating cost of the company rose by 30 per cent from N7.68 billion in June 2016 to N9.98 billion in June 2017.

A breakdown of the operating cost, showed Med-View spent N1.3 billion on aircraft lease for local operation in the first half of 2017 as against zero spending in the same period of 2016. Expenses on aircraft maintenance almost halved to N235.3 million from N417.6 million while spending on aviation fuel –ATK almost doubled from N2.8 billion last year June to N4.5 billion in the period under review.

Handling charges dropped 10.3 per cent to N425 million while statutory charges, Government agency/royalty and weighing charges fell 4 per cent, 24 per cent and 33 per cent respectively.

Medview also recorded a 65 per cent reduction in depreciation charge on Aircraft that stood at 102.4 million compared to N300.4 million spent on Depreciation one year ago.

Consequently, the carrier posted a growth of 28 per cent in Profit before Tax (PBT) which stood at N857.3 million in 2017, from N671.5 million posted in 2016.

This also reflected on its earnings per share for the period that appreciated by 28 per cent to N8.79 per share from N6.89 per share earned last year.

The company’s balance sheet, however, revealed that total assets dropped marginally by 1.7 per cent to N15.2 billion from N15.4 billion reported at year end 2016 while shareholders fund stood at N6.98 billion up 9 per cent from N6.42 billion recorded in December 2016.

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