Record profit sees airport get generous

By GEOFF SENESCALL

Auckland International Airport gave its shareholders something to cheer about yesterday by more than trebling its interim dividend.

It is the latest company to move to pay out as much cash as possible ahead of the March 31 financial year, when the marginal personal tax rate for those earning more than $60,000 goes up from 33 per cent to 39 per cent.

The news that it was paying out a 5.5c a share special dividend on top of a 4.5c a share dividend buoyed the airport's share price, which has been languishing in recent months along with other stocks in traditional sectors.

The 10c dividend (fully imputed) for the six months to December compares with 2.9c a share in the same period in the previous year. Books close on March 24 with payment scheduled for March 30.

The interim payout is not at the expense of the second-half dividend.

The airport shares closed up 12c to 262c.

Auckland International Airport lifted its after tax profit by 21.9 per cent to a record $24.82 million, which was ahead of analyst expectations.

The company expected a similar record second-half performance provided "activity levels continue on their positive upward trend."

Looking forward, chief executive John Goulter also pointed to significant progress in developing its property.

"We have got four property developments that are close to being signed," he said.

Mr Goulter anticipated the contracts would be signed in early April.

By early May he expected to have a major retail site signed.

Mr Goulter dismissed suggestions that the airport could look to expand through acquisition of other airports.

"We know how to make money on our own patch," he said, adding there were few examples that others were making money out of such moves.

However, Mr Goulter did not discount the possibility of having a look at Sydney airport if it finally came up for sale this year.

But it was not talking to any potential partner as yet.

The airport profit was carved out of a 5.7 per cent rise in revenue to $84.66 million.

Increases in retail and airfield income - making up around 59 per cent of the revenue - accounted for most of the rise.

Total passenger movements at the airport rose 3.4 per cent to 4 million, of which international traffic rose 4.1 per cent to 2.4 million and domestic passenger flows rose 2.4 per cent to 1.6 million.

The airport managed to shave 0.7 per cent from operating expenses which were $23.41 million.

Earnings before interest, tax and depreciation were up 8.4 per cent to $61.26 million. Depreciation rose 2.1 per cent to $15.42 million.