Auckland Airport improves profit by 13 per cent

8.45am

Auckland International Airport (AIA) today posted a June year net profit after tax of $94.3 million, up 13 per cent on the previous year.

The result came on total operating revenue of $262.3m, up 11.8 per cent on the 2003 June year.

AIA's operating surplus before tax was $139.5m, up 16.2 per cent on the previous year.

AIA announced a final dividend of 17.3c per share (cps), against 12.5cps last year.

Earnings per share were 30.97cps, from 24.57cps.

AIA said the result was buoyed by significant increases in both international and domestic passengers, and international aircraft movement.

In a statement to the sharemarket, the nation's largest airport described the result as first class.

For the first time passenger numbers exceeded 10 million.

AIA embarked on a number of significant security and capacity projects during the year.

Growth occurred across the board in both the aeronautical and non-aeronautical areas of the business.

Chief executive Don Huse said the unprecedented number of passengers meant the airport and its facilities were operating at near capacity during peak times.

"A number of expansion projects have been initiated to ensure service standards are maintained," he said in the statement.

Based on current projects and planning, AIA forecast capital expenditure over the next three years to be about $125m a year.

Chairman Wayne Boyd said AIA's board believed the continuing development could be funded from retained cash flows and increased debt, "within prudent limits."

Reflecting this confidence, the board considered it appropriate to increase the dividend payout ratio to 90 per cent of the surplus.

During the year, AIA's property division completed nine investment properties, increasing its portfolio to 46 properties with a market value of $157.7m, up $8.6m.

Mr Huse said New Zealand was a popular destination, and demand had increased through strong competition and marketing initiatives by new airlines and Air New Zealand.

"These services have provided travellers, especially on trans-Tasman routes, with a wider range of lower fare and schedule options," he said.

Also during the 12 months to June 30, AIA completed a retail bond issue that raised $200m to refinance existing debt for its capital programme and general funding.

So far the 2004/05 year was progressing well, Mr Huse said.

Passenger numbers had continued to grow strongly through July and August. International passenger numbers were up 14.6 per cent in July, while domestic numbers increased by 9.6 per cent.

Mr Boyd said the board was "of the view that for the 2005 financial year, a surplus after tax result in line with current market expectations of at least $100.0 million can be achieved."

Shares in AIA last traded at $7.25, having traded between $5.96 and $7.35 in the past year.

- NZPA