News: Sydney Airport eyes higher duty-free revenues

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Sydney Airport Limited (ASX:SYD) is eyeing higher duty-free revenues after appointing a German operator as its new duty free partner. 

The owner of Sydney Airport will partner with one of the world’s largest duty free operators, Gebr. Heinemann, following a global tender process.  

Sydney Airport says the partnership is geared to delivering enhanced revenue growth and a significantly improved passenger experience. 

The company expects retail revenues to increase next year as a result of the new tender and for revenue to grow further from 2016 once new initiatives are completed. 

The new contract will start in February 2015 and run for 7.5 years until August 2022. 

Sydney Airport generated a net profit of $176 million in the first half of its 2014 financial year.