KEY POINTS:
Auckland International Airport today reported its December half-year net profit was unchanged from a year ago at $51.1 million.
Auckland Airport declared an interim dividend of 3.75 cents per share, unchanged from last year.
The company reiterated its previous forecast that its full-year profit would be similar to
last year's figure of $103.2m.
Shares in Auckland Airport, 12.8 per cent owned by the Auckland City Council and 9.6 per cent by the Manukau City Council, closed at $2.29 yesterday down 1 per cent.
They have lagged the top 50 index, rising 1.9 per cent in the first half compared with a 13.2 per cent rise in the benchmark NZSX-50 index.
Total revenue for the six months increased 7 per cent to $159.7 million. Earnings before interest, tax, depreciation and amortisation (ebitda) increased 7.8 per cent to $126.2 million.
AIA chairman John Maasland said the company had increases across all of its major revenue lines.
But there was also an expected increase in depreciation and interest costs directly associated with the company's investment programme, combined with higher interest rates.
Accelerating growth in international visitor arrivals, particularly in the last four months of the first half, underpinned a 1.4 per cent increase in total passenger movements to 3.66 million.
International passenger movements excluding transits and transfers increased 0.8 per cent to 3.17 million.
Some of the more traditional markets, such as Australia, Britain and the US had solid growth. That was supported by strong growth from newer markets such as China and India, Mr Maasland said.
Domestic passenger movements increased 1.9 per cent to 2.54 million.
Aeronautical revenues increased following the completion of terminal expansion and security projects last year.
Retail income was up 8.3 per cent, following the opening of new duty free stores in September 2005 combined with higher passenger spend rates, he said.
The company was beginning to see early signs of increased passenger growth rates, particularly visitor arrivals to New Zealand.
The company's major airline customers were upgrading aircraft, which would result in cost efficiencies, service improvements and higher seat capacity, Mr Maasland said.
This would stimulate demand, with new services and schedules being pursued. The impact of higher fuel prices on airfares was beginning to moderate.
Current passenger volumes, together with the impact of the current investment programme on depreciation and interest costs, were factors keeping the full-year profit similar to the previous year.
But the stage was set for much improved earnings growth from the end of the next financial year, with the company having made strong progress towards completing its current investment programme.
Chief executive Don Huse said the company was now in the third year of a four-year increased investment programme.
Projects completed last year included the $47m new upper level on the international terminal pier, the $28m new hold stow baggage screening facilities, and the final stage of the $37m main runway rehabilitation and widening.
This year, AIA was making progress on the next stage of major terminal upgrades.
Those included the $100m expanded arrivals project, the $42m -- including a $13m contribution from Air New Zealand -- upgrading of the domestic terminal precinct, and the first stage of the $50m new Pier B at the international terminal.
Engineering work had also started on the first stage of the northern runway, which was expected to be operational in late 2010 or 2011.
- NZPA
