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


Auckland Airport lifts 1H profit 12%, ups FY forecast

Auckland Airport lifts 1H profit 12 percent, hikes FY forecast

By Paul McBeth

Feb. 20 (BusinessDesk) - Auckland International Airport, the country’s main gateway, boosted first-half profit 12 percent as new routes and increased capacity stoked passenger activity, and the hub is now expecting bigger annual earnings as a result.

Net profit rose to $85.9 million, or 6.49 cents per share, in the six months ended Dec. 31 from $76.9 million, or 5.82 cents, a year earlier, the Auckland-based company said in a statement. The earnings were in line with a forecast by First NZ Capital.

Underlying earnings, which strip out one-off charges and revaluation changes, climbed 14 percent to $86.7 million. Auckland Airport raised its guidance for full-year earnings to between $166 million and $172 million, from a previous range of between $160 million and $170 million.

“The company is pleased to record an interim result which has exceeded expectations and builds on our recent strong performance,” chairman Sir Henry van der Heyden said. “We have renewed our focus on becoming a southern hub airport for the Pacific Rim, and our focus on growing travel markets has resulted in new routes and additional seat capacity.”

Last week the airport’s shareholders approved a $454 million capital return via a share cancellation. The company undertook the return after several strong years left it with an inefficient mix of debt and equity.

The company’s board didn’t envisage paying an interim dividend while carrying out the capital return at the same time.

The shares last traded at $3.64, and have edged up 3.1 percent this year.

Auckland Airport’s aeronautical unit boosted income 8.8 percent to $120.5 million and earnings before interest, tax, depreciation and amortisation climbed 12 percent to $86.8 million. The retail unit increased revenue 3.9 percent to $90.8 million while EBITDA rose 2.6 percent to $82.8 million. The property business boosted revenue 9.5 percent to $24.3 million and earnings 8.9 percent to $18.3 million.

Van der Heyden said the increased aeronautical income was underpinned by higher international and domestic passenger volumes and growth in car parking revenue, while the property unit delivered a solid gain in rental income.

Auckland Airport increased international passenger movements 4.7 percent to 4.08 million in the half, while domestic passenger movements rose 4.8 percent to 3.52 million. Aircraft movements edged up 0.9 percent to 78,959.

International passenger movements at the Cairns airport fell 6.9 percent to 326,146, though domestic passenger numbers rose 4.7 percent to 2.12 million. Mackay domestic passenger numbers were down 3.8 percent to 582,371. The North Queensland Airports boosted net profit 19 percent to A$11.2 million.

Queenstown Airport boosted international passenger numbers rose 29 percent to 179,153, though domestic numbers were down 4.8 percent to 464,786. The South Island hub lifted net profit 23 percent to $3.8 million.

Auckland Airport’s share of profits from its associates, including the North Queensland Airports, Queenstown Airport and Novotel Hotel, rose 11 percent to $4.9 million.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hepatitis A Link: Increased Surveillance Of Imported Frozen Berries

The Ministry for Primary Industries (MPI) Director General has issued a statement warning of a potential risk associated with imported frozen berries following four human cases of Hepatitis A thought to be linked to packaged imported frozen berries. More>>


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news