Queenstown Airport End of Financial Year Results

Media Release| Tuesday, August 28, 2012

Queenstown Airport End of Financial Year Results

For June 30, 2012

Strong Financial Performance

Uplift in profit by 13.3%

Dividend to shareholders of $3.6 million

Continued growth anticipated for 2013

The Board of Queenstown Airport is pleased to report a strong financial performance from Queenstown Airport Corporation Limited for the year ended June 30, 2012.

Driven by double-digit growth in passenger numbers, net profit after tax for the year was $5.2 million, up 13.3% from $4.6 million the previous year.

Top line revenue increased 12% to $17.5 million and the earnings before interest, tax, depreciation and amortization (EBITDA) was strong at $11.5 million, a 16.7% increase over the EBITDA of $9.9 million for the previous financial year.

“This solid performance is driven by the strong increase in passenger numbers,” said John Gilks, Chairman, Queenstown Airport Corporation.

The Board also announced that it would pay to its shareholders – Queenstown Lakes District Council (75.1%) and Auckland International Airport Limited (24.9%) - a final dividend of $2.6 million bringing the total dividends paid from profits earned for the year ended June 30, 2012, to $3.6 million (a $1 million dividend was paid in January 2012).

“The Airport saw a record 1,047,044 scheduled passengers travel. International passengers were up 21.2% to 195,249 while domestic passenger numbers rose 11.6% to 851,795."

A direct benefit from the strong passenger numbers was the uplift in revenue of 11.5% from commercial activities. Commercial activities include retail, rental car and car parking.

“Most retailers experienced good growth, and the demand and plans for expanded rental car operators and tenancies grew. The opening of the new expanded Hertz Car Rental facility, the first commercial development by the Airport outside the terminal in several years, was a highlight and will lift next year’s commercial performance,” said Mr Gilks.

“Part of this successful financial performance is the emphasis that has been placed on managing the exceptional growth of Queenstown Airport through necessary but timely infrastructure projects,” Mr Gilks said.

The strategic alliance between Queenstown Airport and Auckland Airport also continued to benefit both parties.

“Access to greater aeronautical expertise, more competitive insurance rates, more ‘buying power’ in procurement projects as well as increased exposure of Queenstown in Auckland Airport’s international marketing campaigns, are some of the initiatives benefiting Queenstown Airport,” said Mr Gilks.

“The Board feels confident that the strategic alliance will continue to create opportunities for increased passenger numbers, improved operating efficiency and profitability and enhance shareholder and community value."

During the year the Airport consulted with the airlines to set a new series of landing charges, which came into effect on July 2012. Going forward this new pricing agreement allows the Airport to provide the terminal facilities and airfield infrastructure required by the arilines and the traveling public into the future.

All four scheduled airline operators, Air New Zealand, Jetstar, Qantas and Virgin Australia continued to increase activity at Queenstown Airport.

“All our airline partners continue to recognise Queenstown as a prime destination by increasing flight frequency, boosting the number of seats available on aircraft as well as introducing new routes.

Seat capacity in and out of Queenstown for the financial period increased by 24.8% to 1,365,000.

“Looking ahead, Queenstown Airport is expecting future growth in aircraft and passenger volumes though it will be hard to repeat the double-digit growth rates experienced in the past year,” said Mr Gilks.

ENDS

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