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

 


Strong year-end result for Queenstown Airport

Trans-Tasman growth drives strong year-end result for Queenstown Airport


- Strong financial performance, Net Profit After Tax $6.6 million - up 25% from the previous year ($5.3 million)


- Stellar 27.6% growth in trans-Tasman passenger numbers year-on-year


- $4.3 million dividend delivered to its two shareholders Queenstown Lakes District Council (QLDC) and Auckland Airport, up from $3.6 million last year. For QLDC, this equates to around $143 per rateable property.


Queenstown Airport Corporation (QAC) continues to build on the success of recent years, reporting another strong financial performance for the year ended 30 June 2014.


Driven by continued growth in passenger numbers, particularly from Australia, improved commercial revenues and prudent management of operating expenses, QAC earned a Net Profit After Tax of $6.6 million for the year - up 25% from the previous year’s profit of $5.3 million.


Total revenue grew 12% from $19.6 million last year to $21.9 million and the uplift flowed to Operating Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) which increased by $2.3 million, or 18%, to $15.2 million.


“Increased passenger numbers have once again underpinned the company’s strong financial performance,” Queenstown Airport Corporation Board Chairman John Gilks said.


A key contributor to the company’s performance was stellar month-on-month trans-Tasman passenger growth which jumped 27.6% from 241,714 to 308,402 passengers in a year.


Overall, Queenstown Airport experienced its busiest year on record with a 4.2% increase in total passenger movements compared to the previous 12 months - itself a record.


Almost 1.25 million (1,248,878) passengers travelled through the airport, 75% (940,476) of which were domestic passengers and 25% (308,402) international passengers.


In line with financial results, QAC’s Board of Directors is pleased to confirm a total dividend of $4.3 million for the year, with 75.1% payable to Queenstown Lakes District Council and 24.9% to Auckland International Airport Limited. For QLDC, the dividend payment equates to around $143 per rateable property (up $21 on last year).


The total dividend comprises a fully imputed interim dividend of 6.23 cents a share ($1.0 million) which was paid on 31 January 2014, and the balance, a fully imputed final dividend of 20.65 cents a share ($3.3 million), which will be paid today (20 August).


Mr Gilks said the appeal of Queenstown and the surrounding region as a domestic and international travel destination remains strong.


“QAC will continue to work closely with aviation and tourism partners to build sustainable capacity growth and improve connectivity, particularly with the possibility of evening flights commencing in 2016.


“Airline alliances, such as those between Air New Zealand and Virgin Australia, and Qantas Group and Emirates, have been instrumental in opening us up to international flying networks, giving short- and long-haul travellers better access and more flexibility to visit our region,” he said.


“Forward schedules show a strong desire from all four airlines operating at Queenstown Airport – Air New Zealand, Jetstar, Qantas, and Virgin Australia – to continue to meet rising demand from our key market of Australia. We are very grateful for their on-going support and are working hard to ensure we have the appropriate infrastructure in place to meet this growth and maintain service levels.”


To manage the demands of growth and improve passenger flow, QAC completed several key infrastructure projects during the year. These included improving passenger flows in the arrivals/departures areas, acquiring a third baggage reclaim belt, resurfacing car parks, building a new Aviation Security office, moving its corporate office to make way for a second passenger lounge, and leasing space for a mini corporate jet terminal which opened in May.


Work also continued on two long-term projects: QAC’s 20-year noise mitigation works plan, which will commence in the next financial year, and acquisition of land to the south of the runway referred to as ‘Lot 6’.


On the commercial front, passenger growth allowed for increased rents and improved fitouts with existing tenants while the positive outlook for the airport attracted new retail and food and beverage offerings. The Remarkable Sweet Shop (opened June 2013), Kapa (December 2013), Patagonia Café (March 2014) and Airspresso (July 2014), have proven popular with airport visitors and are expected to lift next year’s commercial performance.


The strategic alliance with shareholder Auckland Airport continued to deliver benefits, said Mr Gilks.


“This has been reflected in our passenger growth and helped us reduce costs and improve efficiencies in managing future capital investment and property development.


“Having the ability to tap into the country’s number one travel gateway has been extremely beneficial for us from a route development and tourism promotion perspective as well as being able to share operational learnings.”


To view Queenstown Airport Corporation’s full 2013-2014 Annual Report or the Annual Review, which is a summary of the report, please visit www.queenstownairport.co.nz/about/reports (Results and Reports).


ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news