Medview Airline improves half year profit by 27 per cent

Indigenous airline operator, Med-View Airline, has improved its bottom line by 27 per cent for the half year period ended June 30, 2017.

The airline operator in its unaudited half year management account for 2017, realized a profit of N857.3 mn from operations carried out within the period of January to June 2017 against N671.5 mn reported in the same period of 2016, representing a growth of 27 per cent.

Medview also posted a revenue of N13.0 bn for the period representing a growth of 49 percent from N8.7 bn posted as revenue in half year 2016.

The operating cost of the company rose by 30 per cent from N7.68 bn in June 2016 to N9.98 bn 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 2017as against nothing spent 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 mn compared to N300.4 mn 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 mn in 2017, from N671.5 mn posted in 2016.

This also reflected on the company’s 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 bn from N15.4 bn reported at year end 2016 while shareholders fund stood at N6.98 bn up 9 per cent from N6.42 bnn recorded in December 2016. Med view last traded at N1.60 per share