Auckland Airport posts $59.1m year profit

Auckland International Airport posted a net profit of $59.1 million for the year ended June, up on last year's $51.1 million.

That result was slightly down on expectations of about $59.5 million.

The company posted a dividend of 6.25 cents per share, payable on October 19, up on 5.2cps last year.

The AIA directors said in a statement it had been an "excellent year" for the company. Revenue increased 11.4 per cent to a record $189.363 million.

During the year international passenger movements increased 5 per cent, domestic passenger movements rose 5.5 per cent, aircraft take-off weights were up 3.4 per cent and retail revenue increased 11.8 per cent to $56.616 million.

Earnings per share rose to 14.05cps from 12.16cps last year, and earnings before interest, tax and depreciation increased 12.4 per cent to $139.1 million, compared with $123.7 million last year.

Operating costs increased 8.7 per cent to $50.3 million with a "significant amount' of $1.6 million attributed to costs associated with the pricing consultation process and the yet-to-be-completed Commerce Commission inquiry into airfield pricing.

The commission recently investigated Auckland, Wellington and Christchurch airports to see whether they were abusing their monopoly positions on airport landing fees.

In a preliminary report, it recommended price controls on Auckland Airport after finding that its assets were overvalued, giving it too high a return.

However, international credit rating agency Standard and Poor's said the Government's "current light-handed regime" of disclosure and consultation with major airfield customers was enough.

It also warned that price controls could inhibit investment in Auckland Airport, a star sharemarket performer this year.

Last September, Auckland Airport raised its landing fees by 8.5 per cent, the first increase in five years. It plans to raise landing fees again by 5 per cent from September 1.

Depreciation rose to $30.7 million, from $29.6 million, mainly on the back of terminal additions.

Additions to investment properties totalled $17.1 million for the year, and the total value of the investment property portfolio increased to $81.2 million.

A further three projects were under construction at year-end at a cost of $4.0 million; the estimated completion cost of these projects is over $7 million which would bring the value of the investment property portfolio to about $90 million, the company said.

During the year the company received dividends totalling $550,000 from the associate company, HMSC-AIAL Limited.

AIA shares closed yesterday at $3.88, compared to a year high of $3.95 and a low of $3.08.

- NZPA