Another 12 months of strong performance

Media Release l 26 August 2014
Auckland Airport announces another 12 months of strong performance

Auckland Airport has today announced its annual results for the financial year to 30 June 2014.

Total profit after tax was up 21.3% to $215.9 million, while underlying profit after tax increased by 10.5% to $169.9 million. The final dividend paid to shareholders for the year increases by 12% to 7 cents per share, imputed at the company tax rate of 28%, and is in addition to the $454 million capital returned to shareholders during the financial year.

Total revenue was up 6.1% to $475.8 million. Earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) increased by 7.4% to $355.2 million. Total passenger movements were up 3.8% to 15.1 million, with international passengers up 5.1% to 8.2 million and domestic passengers up 2.2% to 6.9 million.

Chair, Sir Henry van der Heyden, says, “This financial year we have continued to implement Auckland Airport’s Faster, Higher, Stronger strategy. In particular, we have focused on growing travel markets and investing in the retail, property and long-term infrastructure we need to take full advantage of growth opportunities.”

“As a result we have seen additional airline capacity and services into Auckland, we have announced our 30-year vision for the ‘airport of the future’, and we have delivered significant improvements for passengers, retailers and property tenants and maintained our focus on driving efficiency and effectiveness throughout the business. Strong execution of our strategic priorities has ensured we are delivering for investors and that we are strongly positioned for our future. This underlying strength has enabled us to return $454 million of capital to shareholders this financial year.”

Sir Henry says that revenue growth was achieved through strong aeronautical performance (up 8.6% or $17.3 million), property (up 7% or $3.8 million) and car parking (up 6.1% or $2.4 million). Expenses were up 2.6% to $120.6 million, with the main contributors being outsourcing expenses, up 9% due to the increasing number of passengers using our Park&Ride service, and staff costs, up 6.4% due to the accrual of long-term incentive provisions as a result of continued strong company and share price performance.

Auckland Airport’s share of profit from associates totalled $11.6 million this financial year, an increase of 17.2% on the previous year. Our profit share from North Queensland Airports increased by 15.2% to $8.1 million, while Queenstown Airport was up 25.7% to $1.7 million and the Novotel hotel up 19.2% to $1.9 million.

Sir Henry says, “The final dividend of 7 cents, imputed at the company tax rate of 28%, will be paid on 17 October 2014 to shareholders who are on the register at the close of business on 3 October 2014.”

“We are confident in Auckland Airport’s ability to unlock further opportunities in the 2015 financial year. We expect underlying net profit after tax (excluding any fair value changes and other one-off items) to be between $160 million and $170 million. Due to the 10% reduction in the number of shares on issue following the capital return, this guidance would be a lift in earnings per share of between 2% and 9%. This guidance is subject to any material adverse events, significant one-off expenses, non-cash fair value changes to property and deterioration due to global market conditions or other unforeseeable circumstances,” says Sir Henry.

Ends

© Scoop Media