3) That, as a consequence of 1) and 2), Toll Revenue is naturally linked and also inelastic to CPI inflation.
Just in case it wasn’t clear, what “inelastic” means here is that traffic volumes are largely unaffected by an increase in CPI (because of point 2 above), so that Toll Revenue can increase, at constant traffic volume, in line with CPI.
TCL Price at posting:
$11.68 Sentiment: Buy Disclosure: Held
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