KEY POINTS:
Auckland International Airport (AIA) has posted a 3.3 per cent rise in full year net profit to $113 million, due in part to strong domestic passenger growth from a more competitive local aviation scene.
AIA said the result was achieved despite a slight softening in the growth of international passenger numbers, increased capital costs resulting from the company's investment programme and significant one-off costs and business disruption associated with ownership interest and takeover activity.
The company incurred takeover-related costs of $9.58m during tye year.
The latest result was after adjusting for one-off items and changes in the fair value of the company's investment property portfolio.
Better competition in the domestic aviation sector was important to the result, but better retail and parking income also helped.
Total revenue for the year was up 9 per cent from the previous year to $351m.
A fully imputed final dividend of 2.45 cents per share is to be paid. That takes the total dividend for the year to 8.2cps, the same as last year.
For the 2009 financial year net profit, excluding any fair value changes, was expected to be in the range of $100m to $110m.
The time of growing capital expenditure had now come to an end, said company chairman Tony Frankham.
"We have continued to invest sensibly and appropriately into future proofing Auckland Airport. Over the last four years, we have invested nearly $500 million in significantly upgrading and expanding all of the key facilities at Auckland Airport. We are now well on the road to delivering on our vision of becoming New Zealand's airport."
Growth in total international passengers (excluding transits and transfers) during the year was 2.5 per cent. While this was below the long term average of 5 per cent, international travel by New Zealanders and Australians remained buoyant, and there was strong growth from new markets like China and India.
Domestic passenger numbers grew at 13.2 per cent.
Chief executive, Don Huse, today presented his last annual results before retiring, said the airport was well placed to take advantage of long-term passenger growth.
Simon Moutter, a former Telecom executive, is set to take over as chief executive.
"Although growth in domestic passenger volumes has been pleasing, we expect that international passenger growth will remain below the long-term average over the next 12 months. As market and economic cycles inevitably recover, growth opportunities can be expected in coming years, " said Huse.
He said a new pier at the international terminal, due to open in October this year, would increase the airport's capacity to handle passengers and aircraft.
With two gates each with twin aerobridges, it will handle the new generation A380 aircraft which is expected to arrive in February next year.
Frankham said the airport's board expected the "short-term macro-economic conditions in New Zealand and internationally" to remain challenging.
This was expected to dampen the growth of international passenger volumes in the short-term, particularly from some of the traditional long-haul markets such as the United States and the United Kingdom.
"We are beginning to see signs of new international seat capacity coming into the Auckland market and we expect there will be more to come in the 2009 year. Competition in the domestic market continues and we are seeing real benefits from our investment in the domestic terminal precinct."
- HERALD ONLINE / NZPA
