Auckland Airport beats full-year guidance with 3.8% earnings gain, sees growth in 2016

Monday 24th August 2015

Auckland International Airport, the country's biggest gateway, beat its own guidance with a 3.8 percent gain in underlying annual earnings and said profit on that measure may rise as much as 8.3 percent in 2016.

Underlying profit, which excludes some revaluations of property and derivatives, rose to $176.4 million in the 12 months ended June 30, from $169.9 million a year earlier, the Auckland-based company said in a statement. Sales rose 6.9 percent to $508.5 million.

Earnings exceeded the $167-$174 million guidance the company gave in February, which was itself an upgrade. Growth in international passenger volumes helped drive a 7.1 percent gain in passenger service charges to $140.9 million, its biggest source of revenue, while retail income, mainly from the stores in its terminals, rose 3.9 percent to $132 million. Airfield income rose 6.5 percent to $93.3 million and the company also recorded increases in rental income.

Total passenger movements through the airport climbed 5 percent to 15.8 million, led by international travellers.

"This growth reflects the very positive trends in the New Zealand tourism industry, which includes a shift towards high-value international visitors," said chairman Henry van der Heyden. Underlying earnings for 2016 are expected to be in a range of $183 million to $191 million, he said.

Net profit rose 3.5 percent to $223.5 million. The company will pay a final dividend of 7.3 cents a share on Oct. 16, with a record date of Oct. 2.

BusinessDesk.co.nz

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