Thursday, February 24, 2011

Auckland Airport: 2011 Half Year Review

Auckland International Airport Ltd [AIA.NZX] 2011 half year result out today improved significantly on last years result with increases in passenger numbers and freight across the board with significant rises in passenger numbers from the recent aquisitions in Queenstown and Northern Queensland.

The net profit after tax of $61.536 million was up 14% on last years half on revenue of $198 million, up 8.7 % on last year.

Individually, revenue from retail was up strongly and aeronautical derived income rose on increased traffic volumes and increased charges.

All other forms of revenue were up.

Any way an investor looks at this result one would have to be pleased with it, especially after years of fairly static profit levels.

Key Points

Net Profit after tax up 14% to $61.536 million

Revenue up 8.7% to $198 million

Increases in revenue from recent airport acquisitions

Increases in all areas of revenue

Increased dividend to 4c per share


What I am pleased about as an investor is that management have managed to grow income over all parts of their business during a recession. The retail revenue rise of almost 13% was especially significant given the parlous state of retail in general but some of this could be due to a revamp and addition of more retail outlets during expansion in various parts of the airport.

Carparking income rose an impressive $1.2 million, indicating that the captive audience of travelers and visitors has risen well over the last 6 months and that it will continue to grow as passenger numbers do.

It is also worth pointing out that Asian business into the port via new Chinese and other Asian airlines over the last half year is increasing as part of overall revenue growth and airline routes introduced after balance date from asian destinations look set to be a dominant force in the airports medium to long-term future.

Looking forward to the full 2011 year management appear bullish about the result indicating a net profit of $112.0 million to $118.0 million.

This of course should be tempered with the possible economic impacts from the Middle East uprisings via higher oil prices and locally a return to recession and impacts from the Christchurch earthquake.


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