Auckland Airport 1H profit rises 21%, beats estimates

Auckland Airport's first-half profit rises 21%, beats expectations

By Jason Krupp

Feb. 24 (BusinessDesk) - Auckland International Airport, the country's busiest gateway, posted 21% rise in first-half profit, ahead of market expectations, on increased visitors from Asia, improved airfield pricing and higher retail sales.

Net income rose to $65.5 million in the six months to Dec. 31, from $54 million in the same period last year, the airport company said in a statement today. That beat a $60.2 million forecast by brokerage First NZ Capital. Sales rose 8.7% to $198.2 million.

The airport said improving global aviation market conditions have stoked passenger volumes, which rose 3.9% to 7 million in the first half. International visitor numbers rose 5%, mainly off increased travel from Asia, while domestic numbers rose 2.6%, with growth hampered by the exit of airline Virgin Blue from the local market.

First-half retail revenue rose 12.9% to $54 million, boosted by the completion of the airside retail development in December and the two airside duty-free stores. Airfield revenues increased 11.7% to $36.7 million as the company lifted a price freeze on landing fees implemented during the global financial crisis.

"We have encouraged new air services, particularly from Asia, that will boost our aeronautical revenues, and will also stimulate demand for travel and deliver increased trade and tourism for New Zealand Inc.," said chief executive Simon Moutter.

"We have also invested heavily in other aspects of our business, such as retail and property, which leverage commercial opportunities from the growth we have attracted," he said. "We are now reaping the benefits from that investment."

The airport's subsidiaries had a mixed performance in the period. Queenstown Airport, which is quarter owned by AIA, reporting a 45.8% increase in first half net profit to $2.9 million compared to the previous year.

That was offset by Cairns and Mackay airports in Australia, where half year net profit fell to A$245,000, down 89% compared to the previous period, due to the impact on operation from the flooding in Queensland and Cyclone Yasi. AIA owns a 25% stake in each.

The company declared a 4 cents-a-share interim dividend, up from 3.75 cents in the previous period. The shares rose 0.9% to $2.26 today, and have gain 3.7% so far this year.

(BusinessDesk)

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