Profits up at Akl Airport, new duty free coming

Auckland Airport. Photo / Dean Purcell

Auckland Airport's interim total profit after tax is up 8.1 per cent to $92.8 million and the company is lifting guidance for the full year.

The airport also announced it will change its duty free providers in the next financial year following a tender process.

Underlying profit after tax increased by 1.3 per cent to $87.8 million for the six months to December 31. The company will pay an interim dividend of 7.3c a share.

The total number of passenger movements was up by 3.8 per cent to 7.9 million, with international passengers (including transits) up by 4.4 per cent to 4.3 million and domestic passengers up by 3.1 per cent to 3.6 million.

Revenue grew 5.4 per cent to $251.4 million. Earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) increased by 6.3 per cent to $189.1 million.

The company said five duty free providers were in the final running following a tender process. It has selected Paris-based LS Travel Retail Pacific and Irish-based Aer Rianta International to replace DFS and JR Duty Free.

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Chairman Sir Henry van der Heyden said as a result of the duty free tender, and other changes in specialty stores, the airport was expecting an additional $5 million in earnings before interest, tax and depreciation in the 2016 financial year.

He said the existing retailers - which were criticised at the airport's annual meeting for hard sell tactics - would work at the airport until the end of June.

Sir Henry said the airport had continued to implement a strategy of growing travel markets, strengthening consumer businesses, achieving operational efficiencies and investing in our property and long-term infrastructure.

"Our 5.4 per cent increase in revenue was, in part, achieved as a result of strong aeronautical performance, property rental and transport income."

Profit from associated airports was $5.4 million up by 11.4 per cent on the previous corresponding period.

"In consideration of our performance and growth momentum in the first six months of this financial year, Auckland Airport is now lifting its guidance for the full year to be between $167 million and $174 million.' '

The interim dividend of 7.3 cents per share is imputed at the company tax rate of 28 per cent and will be paid on April 2.

Read more of the latest Auckland International Airport financial results here: