Ann: FLLYR: AIA: AIAL announces 12 months of stro

• Release Date: 21/08/13 10:34
• Summary: FLLYR: AIA: AIAL announces 12 months of strong performance
• Price Sensitive: No
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AIA
21/08/2013 08:34
FLLYR

REL: 0834 HRS Auckland International Airport Limited

FLLYR: AIA: AIAL announces 12 months of strong performance

Auckland Airport announces 12 months of strong performance and solid returns

Auckland Airport has today announced its annual results for the financial
year to 30 June 2013.
Total profit after tax was up 25.1% to $177.967 million, while underlying
profit after taxation was up 10.6% to $153.781 million. The total dividends
paid to shareholders for the year increases by 14.3% to 12 cents per share,
including a final dividend of 6.25 cents per share, imputed at the company
tax rate of 28%.
Revenue increased 5.1% to $448.458 million and operating EBITDAFI was up 3.6%
to $330.843 million. Passenger movements for the financial year were up 3.6%
to 14.516 million.
Chair, Joan Withers, says, "Auckland Airport has had another 12 months of
strong performance which has provided solid returns to our investors in spite
of continuing challenges in the market place."
"We have continued to show leadership in the development of new routes and
promoted greater understanding of new travel markets. Whilst we have seen
some reductions in certain routes, our investment and work with our airline
partners has resulted in a number of international and domestic airlines
announcing new capacity and additional flights."
"These successes have helped drive New Zealand's travel, trade and tourism
ambitions and we are committed to playing our part in delivering on those
aspirations for New Zealand."

"The Commerce Commission has now reported to the Government and stated that
our pricing provides an acceptable return on the significant investment we
are making in essential long-term infrastructure. This outcome has been the
culmination of a very long and involved process and shows that New Zealand's
information disclosure regime for airports is working. We are pleased that we
can now move forward with confidence in our future investment decisions."
"With that eye to the future, the year has seen a successful transition to a
new chief executive. Further, the strong and experienced leadership and
governance provided by our Board will result in a successful transition in
Board chairmanship later this year."
Mrs Withers says that key revenue highlights include aeronautical revenue
(airfield income, passenger service charges and aeronautical rental income)
increasing 3.7%, in line with total passenger growth. The standout
non-aeronautical revenue contributions came from property rental income
($41.099 million, up 12.5% from 2012) and car-park revenue ($40.370 million,
up 10.2% from 2012).
Expenses increased 9.4% to $117.624 million. Key expenses contributing to
this higher growth include 16.4% growth in staff costs primarily due to the
significant increase in the accrual of long-term incentive provisions. This
demonstrates strong alignment of staff incentives to the very strong company
and share price performance over several financial years. New route
development and continued marketing initiatives to drive passenger growth
also contributed to 15.8% growth in marketing and promotional expenses in the
year to 30 June 2013.
International passengers (excluding transits) grew 1.7% in the 12 months to
June 2013 compared to the prior year. Following growth of 26.5% in the year,
China has now surpassed the United Kingdom to be Auckland's second-largest
source of international passengers after Australia. Outstanding growth was
also achieved in the domestic market with passenger growth to June 2013 of
8.4%.
Total share of profit from associates totalled $9.921 million, comprising
North Queensland Airports' $6.996 million, Queenstown Airport's $1.319
million and Novotel Hotel's $1.606 million.
The final dividend for the year of 6.25 cents per share, imputed at the
company tax rate of 28%, will be paid on 17 October 2013 to shareholders who
are on the register at the close of business on 3 October 2013.
"Auckland Airport is optimistic about the full 2014 financial year and
expects underlying net profit after tax (excluding any fair value changes and
other one-off items) to be between $160 million to $170 million. We note with
some caution that there remains volatility in global economies and risk
remains should this situation deteriorate. Therefore, as always, this
guidance is subject to any other material adverse events, significant one-off
expenses, non-cash fair value changes to property and further deterioration
due to the global market conditions or other unforeseeable circumstances,"
says Mrs Withers.
"While our business has continued to grow in the financial year to 30 June
2013, our strategic plan is to grow faster, aim higher and become stronger
over the next 12 months and, in doing so, maintain the strong momentum we
have established over the past few years. The company report released to the
market today contains additional information on our new business strategy
that will enable us to meet our high expectations for continued growth. The
strategy will also enable us to deliver on our vision to be a great New
Zealand business that is a world leader in creating value from modern
airports," says Mrs Withers.

Ends

For further information, please contact:
Simon Lambourne
+64 9 255 9089
+64 27 477 6120
End CA:00239959 For:AIA    Type:FLLYR      Time:2013-08-21 08:34:25