Forum Archive Index - March 2000

[Chris <autotron@ihug.co.nz>]

Courtesy Aces Brok! Just In



 AIA
 09/03/2000
 HLFYR
 REL: 0900 HRS Auckland International Airport Limited
 HLFYR: AIA: HY TO 31/12/99 $24.821m ($20.359m) +21.9% DIV 4.5+5.5CPS
 CONSOLIDATED OPERATING STATEMENT FOR THE HALF YEAR
 31 DECEMBER 1999
 Unaudited (NZ$'000)
 Current Previous
 Period  Corresponding
 Period
 OPERATING REVENUE
 Sales revenue  84,664  80,093
 Other revenue  -   -
 Total Operating Revenue 84,664  80,093
 OPERATING SURPLUS BEFORE
 UNUSUAL ITEMS AND TAX
 Unusual items before tax
 OPERATING SURPLUS (LOSS)
 BEFORE TAX 36,912  31,590
 Less tax on operating surplus   12,227  11,216
 Operating surplus (loss) after
 tax but before minority
 interest        24,685  20,374
 Less minority interests -       -
 Equity earnings 136 (15)
 OPERATING SURPLUS (LOSS)
 AFTER TAX ATTRIBUTABLE
 TO MEMBERS OF LISTED
 ISSUER 24,821  20,359
 Extraordinary items after tax   -       -
 Less minority interests -       -
 Extraordinary items after tax
 attributable to members of the
 Listed Issuer  -   -
 TOTAL OPERATING SURPLUS
 (LOSS) AND
 EXTRAORDINARY ITEMS
 AFTER TAX  24,821  20,359
 Operating Surplus (Loss) and
 Extraordinary Items after
 Tax attributable to Minority
 Interest   -   -
 Operating Surplus (Loss)
 and  Extraordinary      Items after
 Tax attributable  to Members
 of the Listed Issuer   24,821  20,359
 EPS 5.91        4.85
 SHAREHOLDERS' EQUITY
 ATTRIBUTABLE TO MEMBERS
 OF THE HOLDING COMPANY 493,010 228,230
 Interim Dividend: 4.5cps fully imputed.  Special Dividend: 5.5cps fully
 imputed.  Record Date: 24/03/00.  Payable Date: 30/03/00.
 Record levels of passenger and aircraft movements contributed to AIA's 21.9%
 higher surplus after tax of $24.821m for the 6 months to 31/12/99.      This l
 against $20.359m for the corresponding period last year.
 The increases in both domestic and international passenger movements,
 delivered further benefits to the Company in the form of revenue growth from
 retail activities, international landing fees and carpark revenue.
 Total revenue in the half year grew 5.7% to $84.664m ($80.093m) and earnings
 before interest, taxation and depreciation (EBITDA) for the period rose 8.4%
 to $61.256m ($56.509m).  This unaudited result represents a further
 improvement in the Company's operating margin to 72.4% (70.6%).
 Depreciation for the 6 months amounted to $15.418m ($15.101m).   This charge
 for the period includes depreciation on the revalued asset base and the
 effect of the review of economic lives of assets as a result of the
 independent valuations.
 Interest costs totalled $8.926m for the period ($9.818m).
 The surplus after tax of $24.821m represents an EPS of 5.9c (4.8c).
 Outlook: Provided activity levels continue on their positive upward trend,
 the record result for this first half of the financial year should be
 repeated in the second.
 Our strategic initiatives in property development could see finalisation of a
 number of contracts leading to further commercial projects which will extend
 into the next financial year.
 The outlook for the second half of this financial year therefore remains very
 positive with the expectation that the Company will continue to make sold
 progress.
 END
 End CA:00054306 For:AIA    Type:HLFYR      Time:2000-03-09:09:01:52
Encrypt:YAt 07:19 PM 3/8/00 +1300, you wrote:
>Hi all,
>
>Just thought I'd share with everyone the research I have done on a
>couple of stocks that I believe will attract investor attention over the
>next couple of days. (I'll write about the first one here and the second
>one in another posting)
>
>The first stock is Auckland International Airport (AIA) which is
>announcing its half-year results tomorrow - an expected $23 million
>profit for the period, excellent by any standards. But a greater focus
>for investors will be the special meeting of the Auckland City Council
>tomorrow to discuss the selling of its 25.75% stakeholding in AIA. Most
>of the city councils in the greater Auckland area have already cashed up
>their stakeholdings at a much higher price than the current price of the
>stock. 
>
>Councillor Gray Barlett (a firm advocate for selling) has been quoted
>publicly as saying that he's got the numbers to support selling
>"although it will be close". The Council's pro-sell faction wants to use
>the money for infrastructure funding and while City Vision (with eight
>of the 20 votes on the council) have indicated they would oppose the
>sale, it is expected that the "ayes" would carry the day and approve the
>sale.
>
>The most probable buyer of the Council's stakeholding (worth around $270
>million at the last sell price) would be Singapore's Changi Airport,
>world leaders in airport management.  Changi, not so long ago, paid $87
>million for the North Shore City Council's 7.14 per cent holding in AIA
>- a move seen at that time by market analysts as Changi's clear
>intention of being the major shareholder in AIA. This assumption proved
>right when Changi enlisted the services of a brokerage firm soon after
>to bid for Auckland City Council's 25.75 per cent stake. 
>
>There are many compelling reasons why the Auckland City Council would
>vote to sell its shares. These are:
>
>1. The AIA shareholder registry is wide open and Changi, with around $3
>billion spare cash on its balance sheet, could still take a controlling
>stake in AIA even if the Council decided not to sell.
> 
>2. Such a move by Changi would then negate the 'strategic' value of the
>Auckland City Council's AIA holding - and hence why councillors such as
>Gray Bartlett have been advocating a sell approach.
> 
>3. The bid by Changi has the support of Auckland International Airport's
>management whose MD John Goulter has said that it was a 'feather' in
>AIA's cap that Changi, one of the world's best run airports, had chosen
>Auckland as its first overseas investment.
>
>4. When the Council consulted residents last May, more than 95%
>advocated selling. 
>
>5. The decision by other Councils such as North Shore City and Waitakere
>City to sell their stakeholdings has been putting a lot of pressure on
>the Auckland City Council to do likewise.
>
>6. The Council at present only receives modest cash dividends from its
>stakeholding and unless it sells, cannot derive any capital gain.
>
>7. The Council's stakeholding is exposed to financial risk, i.e.
>sharemarket fluctuations which could diminish the future value of its
>stakeholding.
>
>8. The minority shareholding means the Council is not able to influence
>AIA decisions on future strategy.
>
>9. Proceeds of the sale can be used for infrastructure, public
>transport, repayment of debt, reduction of rates or otherwise as Council
>sees fit. 
>
>10. $120 million of council debt can be paid off.
>
>11. A 'nest egg' of  around $153 million (depending on final sale price)
>will be available for infrastructure spending.
>
>For the reasons listed above, I believe the Council will vote to sell
>tomorrow.  Many broking analysts have predicted that a sell decision
>will have an extremely positive impact on the AIA share price. The
>analysts have blamed the Council's past stubborn doggedness (in not
>selling) as the main factor in the AIA share price decline in recent
>months. The stock closed at $2.50 today but its movement over the next
>day or so will be extremely interesting as some brokers have put its
>true value at $3.50.
>
>As usual, I trust the above information will be useful in your
>investment deliberations over the next couple of days.
>
>Cheers,
>
>Frank Fernandez
>
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