Auckland Airport announces strong FY15 performance, underpinned by New Zealand tourism growth

24 August 2015

Auckland Airport has today announced its annual results for the financial year to 30 June 2015.

Auckland Airport Chair, Sir Henry van der Heyden, says, “The 2015 financial year was another 12 months of excellent performance across our business, which has underpinned an increase in the value of our company and outstanding returns to our shareholders.”

“Total passenger movements through Auckland Airport were up 5% to 15.8 million, with international passengers up 5.7% to 8.1 million, international transit passengers up 6.7% to 0.5 million and domestic passengers up 4.2% to 7.2 million. This growth reflects the very positive trends in the New Zealand tourism industry, which includes a shift towards high-value international visitors.”

“In the 2015 financial year, Auckland Airport continued to implement its strategic business plan: Faster, Higher, Stronger. This has delivered immediate benefits – including in technology, retail and aeronautical infrastructure – and has positioned us to take full advantage of future opportunities. In particular, our property development business has performed very well in the 2015 financial year.”

“We have continued to see new airline routes, services and capacity. We have introduced two new duty free operators and exciting fashion, food and beverage retailers in our terminals. Our collaborative work with partners has improved the efficiency of airport operations and has delivered important benefits for our passengers. Also, we have started to deliver the infrastructure anticipated in our 30-year vision for the airport of the future.”

Total profit after tax was up by 3.5% to $223.5 million while underlying profit after tax increased by 3.8% to $176.4 million. The final dividend paid to shareholders for the year is 7.3 cents per share, delivering a total dividend for the 2015 financial year of 14.6 cents per share – reflecting an increase of 12.9% in underlying earnings per share for our investors the past 12 months.

Revenue was up by 6.9% to $508.5 million. Earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) increased by 7% to $380 million.

Sir Henry says that revenue growth was achieved once again through strong aeronautical performance (landing and passenger charges up by 6.9% to $234.2 million) and property rentals (up by 8.9% to $64.6 million). Operating expenses increased by 6.6% to $128.5 million, with asset maintenance and operations costs up by 9.7% to $44.2 million, in part due to additional outsourcing costs for valet parking, Park&Ride and other services. As a result of continued strong company and share price performance, the accrual of short-term and long-term incentive provisions increased staff costs by 8.9% to $46.3 million.

The total share of profit from our associates was $12.5 million this financial year, an increase of 7.8% on the previous year. Our profit share from Queenstown Airport was up by 25.8% to $2.1 million and from Novotel hotel up by 68.4% to $3.2 million. Our profit share from North Queensland Airports decreased by 9.8% to $7.2 million, reflecting a softening Australian economy, as well as the amortisation of fair value movements of interest rate derivatives that were closed out early and replaced by more favourable hedges going forward.

Sir Henry says, “The final dividend of 7.3 cents per share is imputed at the company tax rate of 28% and will be paid on 16 October 2015 to shareholders who are on the register at the close of business on 2 October 2015.”

“Auckland Airport will continue to deliver for its investors in the 2016 financial year. We expect underlying net profit after tax (excluding any fair value changes and other one-off items) to be between $183 million and $191 million. As always, this guidance is subject to any material adverse events, significant one-off expenses, non-cash fair value changes to property and financial derivatives and deterioration due to global market conditions or other unforeseeable circumstances.”

Ends

For further information please contact:

Simon Lambourne
+64 27 477 6120
[email protected]

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