Despite an 82 per cent fall in profit, Infratil remains confident about the long-term growth prospects for its infrastructure investments.
The $7.9 million net profit for the year to March 31 - compared with $45 million the previous year - was dragged down by acquisition costs and losses on its
new European airport investments.
Increased interest payments on the debt raised for last year's $250 million Stagecoach bus and ferry company purchase also hit earnings.
Infratil's debt now comprises 39 per cent of its capitalisation, up from 23 per cent the year before.
The company was yesterday emphasising an increase in earnings before interest, depreciation and amortisation (ebitda), which rose by 22 per cent to $79 million.
Managing director Lloyd Morrison said Infratil's approach to investment was the opposite of the prevailing market fashion for revamping acquisitions for short-term profits.
"We are a long-term investor and we invest in businesses where change is taking place," he said.
Despite taking that approach, Infratil's annual returns - including dividends - had consistently outperformed the market average for the past 12 years. "Our goal is an average return to shareholders of 20 per cent compound after tax."
The company will pay a fully imputed final dividend of 7.5c a share, up from last year's 5.5c final dividend.
Infratil owns Wellington Airport and airports in Germany, England and Scotland. It also owns energy company TrustPower and has energy interests in Australia.
Infratil executive Tim Brown has argued against Air New Zealand's plans to code share with Qantas, saying it should be subject to Commerce Commission scrutiny.
After several big acquisitions in the past two years, Morrison said it was fair to say the company was focused on "bedding down" its investments.
But the high cashflow from the Stagecoach business did give it scope for further investments if they arose.
The company is trying to buy Wellington bus firm Mana Coach Services, but is awaiting commission approval.
Infratil shares closed down 8c at $4.40.
