Auckland Airport posts $71.5 million June year profit

By NZPA

Monday 2nd September 2002

Auckland Airport, which handles more than 70 percent of New Zealand's international arrivals and departures, posted a net profit of $71.5 million for the June year.

The company will pay a dividend of 7.5 cents per share, payable on October 25.

Multex Global analysts picked the airport to produce a profit of $69.8 million for the year, while analysts spoken to by Reuters forecast a net profit of about $71 million, compared with the previous year's $59 million.

The company managed to avoid the downturn in world tourism as a result of last year's September 11 attacks in the United States, seeing a 23 percent rise in interim profit earlier this year.

Directors said in a statement today that the company's result was despite "the difficulties brought on as a consequence of the terrorist events of September 11 and its aftermath, coupled with the demise of the Ansett Australia operation and the financial effects on its major customer, Air New Zealand.

"In a year notable for significant upheavals in international aviation markets, the company's revenue increased by 6.2 percent to $201.1 million, while the surplus after tax improved 21.0 percent to a new record of $71.5 million."

Total dividends for the year amount to 13.5cps, up from last year's 11.25cps.

Operating expenses of $40 million were below last year's $50.3 million, including $772,000 associated with the ongoing Commerce Commission inquiry into airfield pricing.

The company's total assets surpassed $1 billion for the first time, totalling $1.1 billion ($884.288 million), while borrowings totalled $350 million, up $30 million.

"In view of the circumstances prevailing during the year, the result of $71.5 million after tax must be regarded as an excellent achievement," directors said.

"It remains, however, difficult to predict when international air travel will return to the traditional (5-7 percent) growth patterns for the industry.

"Current expectations are that growth between 3-5 percent could well be more probable in 2002/03.

"International growth at these levels, coupled with increased returns from the renegotiated retail arrangements and continued expansion of the company's investment property portfolio, should provide for another increased operating result in the next year."

Next year's after-tax surplus will need to be adjusted for the financial effects of a $212.0 million capital repayment.

Managing director John Goulter announced in July his intention to retire as managing director in September next year.

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