Auckland Airport Announces Annual Result 2009

28 August 2009

Auckland International Airport Limited (Auckland Airport) today announced its annual results.

In a year of especially challenging business conditions, Auckland Airport is pleased to report on a sound business performance. The financial result highlights growth across most revenue lines flowing through to an increase in operating earnings before interest, depreciation, and amortisation (EBITDA).

Auckland Airport chairman, Tony Frankham, said, “The operating performance of the company in 2009 was pleasing in a challenging economic environment. Financially, our underlying net profit after tax of $105.9m is within the guidance range forecast last year, and operationally Auckland Airport takes tremendous pride in being recognised as one of the 10 best airports in the world, in the 2009 independent Skytrax World Airport awards.”

Chief executive, Simon Moutter, said, “In March 2009 we unveiled our new growth strategy, and its implementation is now well underway and influencing business performance. Of particular note in the results is a growth in revenue to $369.2m, operating EBITDA to $280.4m, and reduced capital expenditure of $87.5m. These reflect our efforts to focus on key markets, work harder with our customers, drive greater yield, and tightly manage ongoing operational and infrastructure costs.”

The operating EBITDA result of $280.4 million was an increase of $4.6 million (1.6 per cent) over 2008. The operating EBITDA margin was 75.9 per cent, a decrease from the 2008 margin of 78.6 per cent.

The profit after tax for the 2009 financial year was $41.7 million. Adjusted for the effect of the revaluation of investment property, and the costs of restructuring, the profit after tax would be $105.9 million.

The 2009 financial result shows a decrease in the valuation of the Company’s investment property portfolio of $64.6 million, compared with an increase in valuation of $13.7 million for 2008. This results in the reported net profit after tax for 2009 being considerably less than in 2008. As movements in investment properties are non-cash adjustments, they will not affect dividends to shareholders.

In the 2009 year, total passenger movements were 13,012,917, a decrease of 1.4 per cent over the 2008 year. Total aircraft movements were 156,781, a decrease of 1.8 per cent over 2008. International aircraft movements increased by 4.4 per cent, while domestic aircraft movements decreased by 3.8 per cent.

Total ordinary dividends for the 2009 financial year will amount to 8.20 cents per share (equivalent to last year) or $100.449 million in total.

The reduced capital expenditure programme of $87.5 million was invested in a range of airfield, terminal, retail and property projects. These included the completion of Pier B of the International Terminal, the opening of the new “Park & Ride” off-terminal parking offering, ongoing work on the Northern Runway and the commencement of the first floor redevelopment at the International Terminal.

Auckland Airport’s increased focus on air service development was reflected with the winning of new air services from Emirates, Pacific Blue and Jetstar during the year. A greater investment into tourism partnerships has also helped drive volume and strengthen airline relationships. Other major operational achievements include the completion of a process efficiency pilot programme with the border agencies, the completion of a joint venture deal to develop a top-class airport hotel, and a very strong health and safety performance.

Forecasting is difficult when global travel demand conditions are unstable and passenger volume growth remains uncertain. For the 2010 financial year we expect net profit after tax (excluding any fair value changes and other one-off items) to be in the range of $93 million to $100 million, and capital expenditure to be in the range of $60 million to $65 million, excluding yet to be committed property development.

As always, this guidance is subject to any other material adverse events, significant one-off expenses, non-cash fair value changes to property, and further deterioration due to the global market conditions, or other unforeseeable circumstances.

For a copy of the Company and Financial Report, Results at a Glance, Year in Review and PowerPoint presentation follow this link


For further information, please contact:

Simon Moutter
Chief executive
+64 9 255 9167

Simon Robertson
Chief financial officer
+64 9 255 9174

Richard Llewellyn
Senior communications manager
+64 9 255 9089
+64 27 477 6120