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Cn Makes Sound Decision To Retain Airport Shares

Council Makes Sound Decision To Retain Airport Shares


The record after tax surplus made by Auckland International Airport confirms the decision by Auckland City Council to retain its shares was a sound one, says the chairperson of Council’s Investments Committee.

Councillor Vern Walsh says Auckland International Airport made a record surplus after tax of $28.5 million in the second half of last year, a 15 per cent increase over the same period in the previous year. The half-yearly results were received in a report to last week’s (March 15) Investments Committee meeting.

Revenue made by the company was $93 million, up 9.9 per cent in the corresponding period the previous year. Councillor Walsh says airport management is confident the after-tax surplus can be repeated in the first half of this year.

Auckland International Airport Limited has announced an interim dividend of 5.0c per share and has indicated that shareholders may expect to receive a final dividend of around $0.10 per share. Auckland City receives an interim dividend of $5.41 million.

Councillor Walsh says this is a “great return” for the Council and allows it to invest in infrastructure such as public transport without having to increase its levels of debt or place additional burden on ratepayers.

“The performance of the company and the return to ratepayers by way of dividend has confirmed in my mind that the decision of the Council to retain the shares in Auckland International Airport Limited was a good one,” he says.

“It should be noted that our forward budgets are based around no asset sales while at the same time we are able to make considerable capital investment in projects that will benefit the city,” said Councillor Walsh.

The increase in revenue is due mainly to improved retail, landing charge and airport development charge income. These are driven by record passenger numbers and an increase in aircraft movements.

Both international and domestic passenger movements experienced strong growth during this period. International arrivals and departures were up 7.9 per cent over last year and the number of domestic passengers increased by 5.5 per cent.

Councillor Walsh says Council figures show that Auckland City has 108,171,000 shares in Auckland International Airport Limited. This time last year the share price was $2.48 and the Council’s share was worth $268,264,080. On 19 March, the share price was $3.55 – an increase in 12 months of $1.07 – and the value of its shares has risen by $115,742,970 to $384,007,050.


Ends

For further information, please contact:
Councillor Vern Walsh, tel: 626 5492 or 021 770 283.


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