Auckland Airport underlying profit rises 15%, led by income from retailing
Aug. 23 (BusinessDesk) – Auckland International Airport Ltd. posted a 15% gain in underlying profit, driven by a jump in earnings from retailing from its new departures area and increased airfield income.
Profit excluding revaluations and other one-time items rose to $120.9 million, or 9.18 cents a share, from $105 million, or 8.35 cents, a year earlier, the company said in a statement today. Sales rose 9.6% to $397.7 million. Underlying profit matched the forecast of Forsyth Barr analyst Jeremy Simpson.
Earnings are set to rise again this year, with profit forecast to “be in the $130 millions,” according to chairwoman Joan Withers. The company counts retailers in the terminals as its biggest source of income and is also growing returns from car parking and property rentals. The airport has stepped outside its home market in recent years, investing in airports in Queensland and Queenstown.
The company will pay a final dividend of 4.7 cents a share, making 8.7 cents for the year, up from 8.2 cents in 2010. The shares rose 0.7% to $2.23 and have gained 0.5% this year. They are rated a ‘hold’ based on the consensus of seven recommendations compiled by Reuters.
Reported profit, the measure that companies used to regard as their bottom line before a recent blossoming of variations that exclude some items, was $100.8 million, up from $29.7 million a year earlier.
Retail income rose 16% to $111 million to account for 28% of total revenue. Passenger services charges generated $78.8 million, up 7.5% from a year earlier and the second-largest source of revenue.
Airfield income climbed 8.7% to $72.5 million and terminal services charges gained 1.8% to $28 million. Rental income climbed 2.9% to $49.9 million and car parking generated $33million, up 6.5%.
Expenses climbed 15% to $99.5 million, with marketing and promotion costs surging to $11.8 million from $4.5 million.