GBOLABO AFUWAPE
Nigeria’s air service provider, Medview airlines grew its bottomline by 14.59 percent despite having its topline decline by 68.82 percent in its 2018 third quarter financial report.
The aviation firm had its Profit after Tax (PAT) grow from N1.533 billion recorded in the first nine months of 2017 to N1.757 billion in the same period in 2018, bringing about the 14.59 percent growth.
However, it gross revenue in the nine months of 2018 was N2.446 billion, declining from N7.847 billion same period in 2018. The drop represented 68.82 percent.
The operating costs declined by 50.67 percent from N7.313 billion recorded in the first nine months of 2017 to N3.607 billion recorded in the same period in 2018.
Medview Airline 2018Q3 financial
As a result of the drop in the operating costs, its gross profit grew exponentially. Gross profit for the first nine months of 2018 came to N1.161 billion from N0.535 billion recorded in the same period in 2017, representing a 117.12 percent growth.
Its gains from foreign exchange plummeted from N25 million recorded in the first nine months of 2018 to N3 million recorded in the same period in 2018, representing a 85.90 percent drop.
The airline’s nonspending on advertisement, business development, entertainment, professional fees, exchange loss as-well-as the reduced spending on virtually all other administrative expenses brought about a 71.69 percent drop in its administrative expenses from N1.898 billion recorded in the third quarter of 2017 to N0.538 billion recorded in the same period in 2018.
The income that the air service outfit garnered in the third quarter of 2018 was N44 million. The figure was 46.22 percent lower than N81 million recorded in the same period in 2017.
Its interest in loan and overdraft in the first nine months of 2018 brought its finance cost to N98 million. The figure represents a 29.58 percent drop from N139 million recorded in the same period in 2017.
Conversely, its profit before tax (PBT) grew from 1.446 billion recorded in the first nine months of 2017 to N1.757 billion recorded in the same period in 2018, representing a 21.48 percent growth.
Thanks to the significant growth in its property, plant and equipment, its non-current assets for the first nine month of 2018 grew by 65.31 percent from N12.327billion recorded in the first nine months of 2017 to N20.378 billion recorded in the same period in 2018.
Despite the plummet in its retained earnings, its Total equity declined by 25.21 percent from N7.386 billion recorded in the first nine months of 2017 to N5.524 billion recorded in the same period in 2018.
Total liabilities and total assets went in converse direction. Total liabilities advanced by 54.84 percent from N12.212 billion recorded in the first nine months of 2017 to N19.154 billion recorded in the same period in 2018.
Whereas, total assets grew by 25.92 percent from 19.598 billion recorded in the first nine months of 2017 to N24.678 billion recorded in the same period in 2018.
Its earnings per share grew by 33.33 percent from 1.2kobo recorded in the first nine months of 2017 to 1.6 kobo recorded in the same period in 2018.
Further analysis showed that its Price Earnings (P.E.) Ratio stood at 120.63 percent while its earnings yield stood at 0.83 percent.
MEDVIEW AIRLINE STOCK PRICE GRAPH
Medview airline which has N18.819 billion market capitalization on the Nigerian equities market has had its stock price in the last one year vacillate between N1.52 and N1.93 with a high price of N2.20 and a low N1.52.
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