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

 

Auckland Airport shares climb to 6-yr high on earnings gain

Auckland Airport shares climb to 6-year high on better earnings, higher dividend

By Paul McBeth

Aug. 21 (BusinessDesk) - Shares in Auckland International Airport rose to a six-year high after the country’s biggest gateway beat earnings estimates and lifted its dividend payment.

The stock rose as high as $3.30 and recently traded at $3.28, up 0.9 percent today on bigger than usual turnover of almost $88 million. The shares have gained 23 percent excluding dividends this year, outpacing the 11 percent gain in the benchmark NZX 50 index, according to Mark Lister, head of private wealth research at Craigs Investment Partners.

“It’s been twice as good a performer as the market, and then dividends on top of that – you can’t complaint at all about that,” Lister said.

Auckland Airport lifted net profit to $178 million, or 13.5 cents per share, in the 12 months ended June 30 from $142.3 million, or 10.8 cents, a year earlier, the country’s main gateway said in a statement. That beat First NZ Capital’s forecast profit of $155.6 million.

Revenue rose 5.1 percent to $448.5 million, while the value of the airport’s investment property gained $23.1 million, and derivative values increased $1.5 million.

The board declared a final dividend of 6.25 cents per share with an Oct. 3 record date, payable on Oct. 17. That takes the annual payment to 12 cents per share, or $158.7 million, up from 14.3 cents, or $158.9 million, a year earlier.

Underlying profit, which strips out one-off items and fair value movements climbed 11 percent to $153.8 million, or 11.6 cents per share, in line with First NZ estimates. Auckland Airport sees underlying earnings rising to between $160 million and $170 million in the 2014 financial year.

Lister said the outlook was a “nice healthy level of growth” and a weaker local currency is probably helping underpin increased interest among international visitors.

Government figures today showed visitor arrivals climbed 6 percent to 173,500 in July from the same month a year earlier, a record for the winter month.

Chief executive Adrian Littlewood today told an investor briefing the airport will seek growth through a coordinated national approach to attract international visitors, bolster its consumer business, improve efficiencies and sharpen up investment, particularly in its property development business.

Last month the Commerce Commission signed off on Auckland Airport’s targeted returns of 8 percent per annum between 2013 and 2017, saying it was within the antitrust regulator’s acceptable range.

The airport’s aeronautical unit lifted earnings before interest, tax, depreciation and amortisation 4.8 percent to $156.3 million. The retail segment increased earnings 4.1 percent to $159.6 million, and its property segment boosted EBITDA 13 percent to $34.6 million.

Domestic passenger movements climbed 8.4 percent to 6.76 million in the year, offsetting a 0.2 percent decline in international passenger movements, including transits, to 7.76 million and a fall by the same amount in aircraft movements to 155,146.

International passenger movements including transits at its Cairns Airport fell 0.8 percent to 666,607, while domestic passenger numbers gained 6.3 percent to 3.6 million. Domestic passenger numbers at the Mackay Airport fell 1 percent to 1.11 million.

Queenstown international passenger numbers jumped 24 percent to 241,714 and domestic passengers climbed 12 percent to 957,204.

Auckland Airport reaped $9.9 million from its investments in North Queensland Airports, Queenstown Airport and Novotel Hotel.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Electricity Authority: Review Of Competition In The Wholesale Electricity Market Raises Questions

In March 2021 the Electricity Authority announced it would conduct a review into competition in the wholesale electricity market. The period of the review covers the sustained elevated electricity prices since an unplanned outage at the Pohokura gas facility in Spring 2018... More>>


Government: RSI ‘State Of The Nation’ Report Published
latest research, science and innovation system report card is now available, and outlines how the system is performing, Research, Science and Innovation Minister Megan Woods has announced. “The report seeks to increase transparency, act as a reliable data source and stimulate discussion... More>>




Fonterra: Increases 2021/22 Forecast Farmgate Milk Price

Fonterra Co-operative Group Limited today increased and narrowed its forecast Farmgate Milk Price range to NZD $7.90 - $8.90 per kgMS, from NZD $7.25 - $8.75 per kgMS. The midpoint of the range, which farmers are paid off, has increased to NZD $8.40 per kgMS, from NZD $8.00 per kgMS... More>>




Pamu & Westpac: Market-leading Sustainability-Linked Loan

Westpac NZ and Pāmu have signed New Zealand’s most comprehensive Sustainability-Linked Loan to date, also the largest in the agricultural sector, and the first involving a state-owned enterprise. Pāmu, also known as Landcorp, is New Zealand’s biggest farming business. It will borrow $85m from Westpac NZ over three years... More>>


Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>