Ann: HALFYR: AIA: AIAL announces financial result

• Release Date: 21/02/13 10:46
• Summary: HALFYR: AIA: AIAL announces financial results for half-year to 31.12.12
• Price Sensitive: No
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AIA
21/02/2013 08:46
HALFYR

REL: 0846 HRS Auckland International Airport Limited

HALFYR: AIA: AIAL announces financial results for half-year to 31.12.12

o Reported profit and underlying profit both up
o Ambitious growth strategy still driving success
o Interim dividend increased
o Modest uplift in full-year guidance

Auckland Airport is pleased to record a solid interim result for the
six-month period up to 31 December 2012. This continues a run of three
consecutive years of profit increase, driven by an ambitious growth strategy
and improved operating leverage.
Reported profit after tax for the six-months was up 11.3% to $76.910 million,
while underlying profit after tax was up 7.5% to $76.090 million. Total
revenue was up 3.6% to $223.552 million, while expenses, excluding
depreciation and interest costs, were $57.191 million, up 4.9%.
Shareholders have also benefited from an increase in dividend policy to 100%
of net profit after tax, and a more even balance between the interim and
final dividends, better reflecting the financial performance of the business.

However, our performance matters to more than just shareholders. Auckland
Airport provides and builds connections between New Zealanders and their
families, friends, business partners and customers. We play a core role in
providing New Zealand exporters and importers with access to markets. Indeed,
most New Zealand businesses are dependent to some extent on the air-links
provided through our airport infrastructure and through our market
development investment. New Zealand's future economic performance will also
be dependent on Auckland Airport's infrastructure maintaining pace with
growth, and its market development work helping to open up more access to
business opportunities.
While the effect of the 'lapping' of a one-off increase in visitors driven by
the 2011 Rugby World Cup tournament has had some effect, this was not
especially significant in overall terms. It accentuated the decline this year
in visitors from some key markets, particularly United Kingdom and Europe,
but total demand for travel, both nationally and internationally, has
continued to prove resilient to global upheavals and domestic fluctuations.
The result includes elements that make direct comparison to the prior
half-year reporting period to December 2011 difficult, particularly
aeronautical revenue reflects the restructuring of aeronautical charging
introduced in July 2012 following consultation with substantial airline
customers. This includes a reduction in international charges, increase in
domestic charges, discontinuance of a terminal service charge, removal of
some domestic lease charges and introduction of a domestic and transit
passenger charge.
The half-year also saw a continued and ambitious air-service and market
development focus on expanding New Zealand tourism and trade opportunities,
particularly with the significant, and diverse, Chinese market.
As we have flagged in recent reports, the passenger experience at the
domestic terminal is deteriorating and needs to be addressed to accommodate
growth in travel demand. Some shorter-term remediation is now underway while
the decisions on the best longer-term solution for New Zealand's primary
domestic travel hub near completion. Whatever the final decision in relation
to this essential national transport infrastructure, it will require
significant capital expenditure and sufficient confidence in an appropriate
return on the investment.
We look forward to the second half of the 2013 financial year with growing
confidence. Our business strategy remains on track. Future opportunities to
capture the next phase of growth and expand our already significant
contribution to New Zealand's economy are, allowing for appropriate returns
on our infrastructure investment and continued execution, eminently
achievable.
At the beginning of the 2013 financial year, we outlined expectations that
the net profit after tax (excluding any fair value changes and other one-off
items) would be between $143 and $150 million.
Performance for the first six months has been slightly ahead of expectations,
particularly domestic passenger volume growth. While challenges to aviation
demand remain, we now have a modestly higher expectation for the FY2013
period. We are therefore lifting our guidance for the full year to between
$145 and $153 million, subject to any material adverse events, significant
one-off expenses, non-cash fair value changes to property, and volatility in
global market conditions or other unforeseeable circumstances.

Ends

For further information, please contact:
Adrian Littlewood
Chief Executive
+64 9 255 9176

Richard Llewellyn
Corporate relations manager
+64 9 255 9089
+64 27 477 6120
Refer pdf attachments: Financial Report / Results at a Glance / Company
Report / NZX Appendix 1 / PowerPoint presentation
End CA:00233220 For:AIA    Type:HALFYR     Time:2013-02-21 08:46:50