Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Auckland Airport announces financial results for half-year

Auckland Airport announces financial results for half-year ending 31 December 2012

Auckland Airport announces financial results for half-year ending 31 December 2012

Reported profit and underlying profit both up

Ambitious growth strategy still driving success

Interim dividend increased

Modest uplift in full-year guidance

Auckland Airport is pleased to record a solid interim result for the six-month period up to 31 December 2012. This continues a run of three consecutive years of profit increase, driven by an ambitious growth strategy and improved operating leverage.

Reported profit after tax for the six-months was up 11.3% to $76.910 million, while underlying profit after tax was up 7.5% to $76.090 million. Total revenue was up 3.6% to $223.552 million, while expenses, excluding depreciation and interest costs, were $57.191 million, up 4.9%.

Shareholders have also benefited from an increase in dividend policy to 100% of net profit after tax, and a more even balance between the interim and final dividends, better reflecting the financial performance of the business.

However, our performance matters to more than just shareholders. Auckland Airport provides and builds connections between New Zealanders and their families, friends, business partners and customers. We play a core role in providing New Zealand exporters and importers with access to markets. Indeed, most New Zealand businesses are dependent to some extent on the air-links provided through our airport infrastructure and through our market development investment. New Zealand’s future economic performance will also be dependent on Auckland Airport’s infrastructure maintaining pace with growth, and its market development work helping to open up more access to business opportunities.

While the effect of the ‘lapping’ of a one-off increase in visitors driven by the 2011 Rugby World Cup tournament has had some effect, this was not especially significant in overall terms. It accentuated the decline this year in visitors from some key markets, particularly United Kingdom and Europe, but total demand for travel, both nationally and internationally, has continued to prove resilient to global upheavals and domestic fluctuations.

The result includes elements that make direct comparison to the prior half-year reporting period to December 2011 difficult, particularly aeronautical revenue reflects the restructuring of aeronautical charging introduced in July 2012 following consultation with substantial airline customers. This includes a reduction in international charges, increase in domestic charges, discontinuance of a terminal service charge, removal of some domestic lease charges and introduction of a domestic and transit passenger charge.

The half-year also saw a continued and ambitious air-service and market development focus on expanding New Zealand tourism and trade opportunities, particularly with the significant, and diverse, Chinese market.

As we have flagged in recent reports, the passenger experience at the domestic terminal is deteriorating and needs to be addressed to accommodate growth in travel demand. Some shorter-term remediation is now underway while the decisions on the best longer-term solution for New Zealand’s primary domestic travel hub near completion. Whatever the final decision in relation to this essential national transport infrastructure, it will require significant capital expenditure and sufficient confidence in an appropriate return on the investment.

We look forward to the second half of the 2013 financial year with growing confidence. Our business strategy remains on track. Future opportunities to capture the next phase of growth and expand our already significant contribution to New Zealand’s economy are, allowing for appropriate returns on our infrastructure investment and continued execution, eminently achievable.

At the beginning of the 2013 financial year, we outlined expectations that the net profit after tax (excluding any fair value changes and other one-off items) would be between $143 and $150 million.

Performance for the first six months has been slightly ahead of expectations, particularly domestic passenger volume growth. While challenges to aviation demand remain, we now have a modestly higher expectation for the FY2013 period. We are therefore lifting our guidance for the full year to between $145 and $153 million, subject to any material adverse events, significant one-off expenses, non-cash fair value changes to property, and volatility in global market conditions or other unforeseeable circumstances.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news