FIRST CUT: Auckland Airport lifts 2018 profit, expects

Thursday 23rd August 2018

Auckland International Airport lifted underlying profit in 2018 and expects further uplift in 2019 as it spent more on redevelopment.

Net profit nearly doubled to $650.1 million in the year to June 30, though that was boosted by the sale of the airport's stake in North Queensland Airports, worth A$370 million. Underlying profit rose 6.2 percent to $263.1 million, on an 8.7 percent lift in revenue to $683.9 million.

The airport is anticipating moderate underlying profit growth in 2019, between $265 million and $275 million, and expects to spend between $450 million and $550 million on capital expenditure in the year ahead, as part of its $2 billion aeronautical infrastructure development programme. Capex for 2018 was $405.2 million.

"In the past year we built further momentum in delivering on our infrastructure plans and in reshaping our business to match the needs of our new development era and changing travel and trade markets," said chair Henry van der Heyden. "We are already starting to see the benefit of these projects on operational and service performance and customers are also benefiting from the changes through upgraded facilities, improved airport processes and a wider range of retail choices while at the airport."

Patrick Strange will take over as chair, effective Oct. 31, as van der Heyden is retiring after five years in the role.

The board declared an 11 cents per share final dividend, with a record date of Oct. 5, payable on Oct. 19. That's up from the 10.5 cents per share final dividend in 2017, and takes the annual payout to 21.75 cents.

The shares closed yesterday at $6.92, and have gained 6.8 percent this year.

(BusinessDesk)

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