Auckland Airport posts strong result

Auckland International Airport is attributing a terminal upgrade and car park revenue for a 15.1% rise in adjusted net profit to $120.87 million for the June year.

The country's busiest gateway said its revenue grew by $34.6 million (9.5%) to $397.7 million with total passenger numbers through the airport up 2.8% at 13.82 million.

Overall net profit of $100.76 million compared favourably with last year’s $29.69 million, due to non-cash fair value changes to the company’s property assets.

The company announced a total dividend of 8.7c, up from 8.2c a share.

Chief executive Simon Moutter said two of the key drivers of the revenue growth have been better than expected retail results in the new departures area and a stronger yield in car parking, particularly through the new online booking channel.

A feature of the result was the overall increase in passenger numbers, despite disruptions including the Christchurch earthquake, the Chilean ash cloud and the Japanese tsunami, which had a significant impact on tourism.

International passenger movements, including transit passengers, increased by 4.9% in 2011, the company said.

However, domestic passenger growth remained flat at 6 million having struggled particularly in the second half of the financial year.

“The drag on growth experienced in domestic passenger movements was largely driven by Pacific Blue’s exit from the domestic market in October 2010. 

The drop experienced in June 2011 in both domestic and international passenger movements was as a result of the Chilean ash cloud, which caused the cancellation of several flights.

Operating costs increased by 14.6% to $99.49 million, largely flowing from higher promotional costs related to the successful launch of several new services including China Airlines, China Southern Airlines and Jetstar to Singapore. Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates (ebitdafi) was up 7.9% at $298.2 million.

Mr Moutter said that passenger numbers continue to reflect dramatic shifts in the global architecture of trade and economic relationships.

“Asia and in particular China is now driving much of the growth in global travel demand. Other powerhouse economies such as India and Brazil are making their presence increasingly felt
internationally.”

Chairwoman Joan Withers said:

"Despite the destructive natural events and the challenges that have buffeted travel and tourism this year, it has been an excellent twelve months for Auckland Airport. We have broken out of a period of relatively flat profitability, delivering for the 2011 financial year a 15.1% increase in underlying profit to $120.87 million.”

Net profit after tax (excluding any fair value changes and other one-off items) is expected to be in the $130 million's this financial year.

"We note with particular caution, any potential longterm implications from the existing volatility in global financial markets," Mrs Withers said.