Dunedin City Holdings Limited Half Year Result

Dunedin City Holdings Limited Half Year Result to 31 December 2015

Dunedin (Monday, 22 February 2016) – Dunedin City Holdings Limited has reported a surplus of $8.7 million for the six months to December 2015.

The financial result was the first with the inclusion of both Dunedin Venues Limited (DVL - the company that owns the Forsyth Barr Stadium and is the landlord) and Dunedin Venues Management Limited (DVML - the event management company, which currently operates out of the Stadium and the Dunedin Centre) are now included in the Dunedin City Holdings Limited group of companies.

The net surplus for the group has decreased from the $10.1 million reported in the six months to 31 December 2014. Including the impact of DVL and DVML though, i.e. a like for like comparison, reveals a $2.7 million increase in surplus for the six months.

The continuing recent trend of debt reduction has also been a highlight of the financial period. Total debt has decreased from $593 million at the end of June 2015 to $588 million at the end of December, a $5 million decrease.

Dunedin City Holdings Limited Chairman Graham Crombie says, “It is pleasing to once again be able to show an improved financial result for the group. The like for like increase in surplus for the group, along with the reduction in debt levels, continues to reflect the improvement in the overall financial performance of the individual companies within the group.”

Aurora Energy Limited’s profit is down slightly on the previous year, but revenue has continued to grow. The company is continuing its major asset improvement and renewal programme, which is forecast to involve $372 million of expenditure over a 10 year period.

Improvements in both international and domestic demand, and a fall in the New Zealand dollar, were key factors for City Forests Limited. Along with reduced costs because of lower fuel prices and international shipping rates, this has led to healthy increase in surplus. The company’s net surplus has increased from $3.7 million in 2014 to $5 million in 2015.

Delta Utility Services Limited has also experienced a slight decrease in surplus for the six months, but continues to be in line with budget expectations. The company continues to develop its asset management, energy and environmental divisions.

Taieri Gorge Railway Limited has experienced an increase in revenue for the six months, reflecting a 10.2% increase in passenger numbers. Cost pressures over the reporting period have resulted in the surplus for the period being down compared with the same period last year.

The impact of increased event income, along with the implementation of the recommendations of the Dunedin City Dunedin Council’s Stadium review, has seen a significant increase in DVML’s financial result. The company has moved from a $1 million loss in 2014 to a reported six month surplus of $300,000. Mr Crombie says this is a significant turnaround for the company.

DVL has reported a net loss of $4 million compared to a loss of $4.4 million for the corresponding six month period last year. This is largely due to the impact of the Stadium review.

A rise in operating revenue, along with a decrease in interest costs, has resulted in an increase in the financial performance of Dunedin International Airport.

For more information:

Graham Crombie

Chairman

Dunedin City Holdings Limited

Phone 027 436 3882

Note: The Dunedin City Council owns Dunedin City Holdings Ltd, which in turn owns seven subsidiary companies being:

• Aurora Energy Ltd
• Delta Utility Services Ltd
• City Forests Ltd
• Dunedin City Treasury Ltd
• Taieri Gorge Railway Ltd
• Dunedin Venues Limited
• Dunedin Venues Management Limited

and a 50% share in Dunedin International Airport Ltd.

ENDS

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