KEY POINTS:
As local interest intensifies around a Dubai-based bid to buy into Auckland International Airport, our trans-tasman neighbour Sydney Airport has today posted a rosy annual result.
Sydney's transport hub posted a 11.6 per cent lift in full year earnings, reflecting improved yields across its commercial operations and increased passenger traffic.
Southern Cross Airports Corporation Holdings Ltd, which is majority owned by Macquarie Airports, said earnings before interest, tax, depreciation and amortisation (ebitda) rose to A$584.66 million ($651.79 million) in fiscal 2007, from A$523.84 million.
The ebitda result excluding specific expenses was A$585.83 million, up 11.5 per cent.
Total operating revenue from all business units rose 9.9 per cent on last financial year to A$724.6 million, while total operating expenses including specific non-recurring expenses increased by 5.6 per cent to A$143 million.
The airport also booked a 6.4 per cent rise in passenger traffic.
Sydney Airport Corp chief Russell Balding said the revenue and earnings growth were the result of increased passenger traffic, continued investment across the business, and the success of commercial initiatives.
"Strong growth in earnings this financial year has been underpinned by a range of commercial initiatives and robust growth in passenger volumes," Mr Balding said.
"At our domestic terminal, T2, an enhanced and expanded retail offering is now catering for the record number of passengers moving through the terminal."
Aeronautical revenue grew by 9.3 per cent to A$294.1 million, with the performance attributed to passenger growth in both the international and domestic markets.
The airports retail business jumped 8.3 per cent to A$168.84 million, thanks to the redevelopment of the T2 terminal, the company said.
"During the financial year the redeveloped T2 retail offering was completed, delivering the growing number of T2 passengers and their well-wishers a comprehensive choice of retail and food outlets," Southern Cross Airports said.
Commercial trading revenue grew by 9.6 per cent to A$93.1 million, reflecting continued growth in vehicle parking volumes and "new product offering at the airport".
Meanwhile, revenue from property grew by 7.8 per cent to A$93.4 million.
"Growth in property revenues reflected the ongoing development of the property portfolio," the company said.
"During the quarter, the new Qantas First Lounge at the international terminal was officially opened, while construction is underway for a new McDonald's restaurant on General Holmes Drive."
And total capital expenditure decreased by 20.2 per cent to A$174.4 million, the company said.
- AAP
