Results for Air NZ, Sky TV, Port of Auckland, Nvidia in big day for investors

SkyCity chief executive Michael Ahearne, Sky TV supremo Sophie Moloney, and Nvidia founder and chief executive Jensen Huang. Photos / Peter Meecham, Alex Burton, Chiang Ying-ying

One of the biggest days of the year for investors featured a “tipping point” for artificial intelligence and a turnaround in ratepayer-owned Port of Auckland’s fortunes.

Meanwhile, results for three major aviation companies showed ongoing challenges facing tourism and travel after the turbulent Covid years.

And companies in technology, entertainment and fashion also had significant announcements today.

Air New Zealand

The company’s results for the six months ending December 31 were released soon after a fees dispute with Auckland International Airport gained the attention of Commerce Minister Andrew Bayly.

Net profit for Air New Zealand fell 39 per cent to $129 million.

The airline said that was an expected reduction on the same time a year before.

Back then the airline enjoyed some of its best-ever results soon after international borders re-opened.

Auckland International Airport

The airport had a strong result, with net profit after tax for the half-year of $118.7 million, compared to a paltry $4.8m for the same period in late 2022.

Near-doubling of regulated aeronautical revenue to $194.8m was credited for the buoyant performance.

Given the fees dispute, that line might aggravate Air New Zealand.

But the airport also had a 52 per cent improvement in retail revenues, which jumped to $90.3m.

And it benefited from 22 per cent increase in total passenger movements.

The airport wasn’t getting too cocky though - warning of softening demand later this year, especially in the domestic market.

Qantas

Across the Tasman, Qantas Group pre-tax profits fell 13 per cent to A$1.25 billion (NZ$1.32b) for the first half.

Qantas, under fire for pricing and service, said lower fares contributed to reduced revenue per available seat kilometre.

After-tax profit was also down by 13 per cent, falling to A$869 million.

Port of Auckland

Port of Auckland, frequently a political football and highly scrutinised for its safety record, will pay a dividend of $20 million to ratepayers.

That’s a $5m improvement on the return to the city in the same six months a year earlier.

The Auckland Council-owned port said it was on track to meet a full 2024 financial year dividend of at least $35m and net profit after tax of $52m.

The port company said this was a good result, especially since “demurrage” or cargo-holding income fell $15m as supply chain congestion eased.

Genesis Energy

Genesis Energy’s earnings dropped in the first half as generation costs rose due to lower hydro inflows and the months-long outage of a gas-powered turbine at Huntly.

Genesis cut its interim dividend to 7 cents a share from 8.8 cents.

The company’s net profit came in at $38m, down 74 per cent.

Genesis said its customer base grew for the fourth consecutive quarter, with nearly 9500 customers added.

SkyCity

SkyCity Entertainment Group’s underlying profit dropped 8.5 per cent in its latest half-year.

The company made $66.5 million underlying net profit after tax for the half-year, down from $72.8m in late 2022.

The gambling and entertainment outfit faced intense scrutiny in recent months, especially over anti-money laundering rules.

Its troubles in Adelaide with Australian regulators have been well chronicled, but now it faces heat from New Zealand watchdogs.

Michael Ahearne is leaving at a very dramatic time for the company. Photo / Peter Meecham

This month, the Department of Internal Affairs said it would prosecute SkyCity Entertainment Group and SkyCity Casino Management, the licence-holder for the Auckland, Hamilton and Queenstown operations.

Chief executive Michael Ahearne leaves the company next month, returning to his native Ireland.

Asked if he was leaving at a good time, Ahearne said: “Earnings show resilience. However, it’s been a pretty challenging environment we’ve been operating in”.

He may not be around in New Zealand for the regulatory drama - but he’ll also miss out on the Horizon Hotel opening in April and the convention centre which might, finally, open next year.

Sky TV

Sky TV reported strong first-half numbers, with a 4 per cent rise in revenue to $393 million.

That came despite a 3 per cent dip in customers to 1.02 million.

And the broadcaster had a 10 per cent rise in net profit to $29m.

Sophie Moloney, chief executive of Sky Network Television. Photo / Dean Purcell

Shares were up 2.2 per cent to $2.82 in early trading.

Chief executive Sophie Moloney told the Herald subscriber numbers for Sky’s entertainment streaming service Neon’s were “soft” at the start of the second half.

But she was hoping fresh content - including the antics of wealthy degenerates in the new series of black comedy White Lotus - would change that.

Nvidia

The world’s most valuable chip company, Nvidia, said quarterly revenue reached an all-time high of US$22.1 billion (NZ$35.75b).

Nvidia, listed on the Nasdaq, has ridden a wave of high demand as big tech companies increase their investment in AI computing.

“Accelerated computing and generative AI have hit the tipping point,” Nvidia founder and chief executive Jensen Huang said.

Nvidia CEO Jensen Huang co-founded the semiconductor chip company in 1993.

“Demand is surging worldwide across companies, industries and nations.”

Hallenstein Glasson

Turbulent might be normal in the fashion retail world.

Back in December, Glassons Australia director and chief executive James Glasson warned shareholders the post-pandemic shopping rebound was wearing off.

He spoke of “a reality check as to the challenges of an ever‐turbulent nature of fashion retailing”.

It seems that reality check got more real as Hallenstein Glasson revealed flat sales over the Black Friday, Christmas and Boxing Day shopping events.

Net profit across the group was now expected to be 2 per cent higher than last year, between $21m and $21.5m.