Infratil earnings buoyed by Vodafone, CDC Data Centres contributions

Intratil and Morrison & Co chief executive Marko Bogoievski (left) with Vodafone NZ chief executive Jason Paris

Infratil's move into digital infrastructure and technology appears to be paying off with strong contributions from Vodafone NZ and Canberra-based CDC Data Centres in its latest result.

The investment company reported proportionate earnings before interest, tax, depreciation and changes in financial instruments (before incentive fees) of $229.5m in the six months to September.

This was up on the $204.2m in the previous corresponding period.

Incentive fees paid to manager Morrison & Co climbed to $57.7m in the first half, compared to $12.8m in the same period in 2019.

Infratil declared a partially imputed dividend of 6.25 cents per share to be paid in December.

The results for the period were impacted by portfolio changes including the acquisition of Vodafone NZ in 2019, and the sale of Perth Energy, NZ Bus, and the ANU Student Accommodation business in 2019, among others.

The company is forecasting proportionate ebitdaf for the full year to March 2021 of between $430m and $470m, including an estimated $80m reduction caused by Covid-19 related restrictions, compared with $446m the previous year.

Forsyth Barr was expecting full-year guidance in the range of $410m to $455m before performance fees.

Vodafone's first half ebitda came in at $224.7m, in line with analyst forecasts. Infratil has a 49.9 per cent stake in the telco after acquiring the business in tandem with Brookfield Asset Management in a deal worth $3.4 billion.

Vodafone saw its earnings reduce by $29m due to Covid-19 but is forecasting full-year ebitdaf of between $425m and $455m (in line with Craigs Investment Partners' guidance of $437.5m).

Vodafone's contribution to Infratil's earnings was $112.1m in the first half.

CDC, of which Infratil owns 48 per cent, reported ebitdaf of A$73.8m, up A$22.1m (42.7 per cent) from the comparative period.

The value of Infratil's holding in CDC Data Centres rose $324 million over the six months.
Other highlights included Trustpower's $56.3m contribution, which was up from $54.6m in the first half of 2019.

Infratil's surplus from continuing operations of $27.8 million compared with $56.4 million for the prior year first half.

Infratil shares opened up 4c to $5.44.