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Auckland International Airport has reported a full year profit after tax of $92 million, on total revenue up 5.3 per cent to $321.9 million.
AIA chairman, John Maasland, said the company had delivered another solid result, despite passenger growth below long-term trends, and increased depreciation and interest costs directly associated with the company's substantial investment programme, combined with higher interest rates.
Growth in total international passengers was 2.6 per cent, underpinned by solid growth in New Zealand travellers, along with strong growth from some of the newer markets such as China and India. Domestic passenger growth was 2.1 per cent.
AIA's net profit after tax of $92 million for the year ended June 30 was 10.8 per cent down on last year's $103.2 million.
But the company today said the figure for the latest year was affected by provisions relating to the company's long-term incentive (LTI) plans.
That resulted from the considerable rise in the company's share price in the month before the end of the financial year.
Excluding the LTI provision, net profit would have been $101.9m.
Earnings before interest, tax, depreciation and amortisation increased 1.1 per cent to $242.8 million. Excluding the LTI provision, ebitda increased 5.2 per cent to $252.7m.
AIA said significant progress was achieved during the year in expanding and upgrading the airport facilities, along with major developments in the aeronautical and commercial businesses.
Chief executive Don Huse said a rebound in passenger growth rates from the levels experienced throughout 2006 was being seen, although overall at a level below the company's long-term average of around 5 per cent a year.
Growth in international passengers in the second six months of the year was 3.8 per cent and the company expected that improving trend to continue into the 2008 year.
Last month, state-backed Dubai Aerospace Enterprise Ltd (DAE) offered to buy between 51 per cent and 60 per cent of AIA, in a $2.6 billion offer.
The deal needs the backing of 75 per cent of shareholders, and will be voted on in November after the local body elections.
Key shareholdings include Manukau City Council's 10.05 per cent and Auckland City Council's 12.75 per cent, giving the two 22.8 per cent.
Also the New Zealand Superannuation Fund and Infratil own 6.2 per cent between them.
Today AIA said it had undertaken a significant review of its vision and future strategy and given consideration to a range of strategic initiatives to enhance long-term value.
Mr Maasland said AIA expected growth in revenues and ebitda to be around 7 per cent in the current year, excluding any revaluation gain relating to the company's investment property portfolio.
Chief financial officer Robert Sinclair said the company invested $105.4m in airport expansion and development projects during the past year.
That included $44.1m for international terminal expansion arrivals projects and $20.6m for the domestic terminal upgrades and retail precinct.
The company also invested $18m in property developments, with a number of properties being completed this year. In the 2008 year, the company expected to invest around $161m, bringing to an end a four year $500m upgrade of Auckland Airport.
Work had also started on the first stage of a northern runway, which was expected to cost a total of around $32m over four years, and was expected to be operational in late 2010 or 2011.
In conjunction with DAE's proposal, AIA previously announced a fully imputed dividend of 7 cents per share to be paid to shareholders before the proposed restructuring.
AIA said a fully imputed dividend of 4.45cps would be paid on October 19.
The balance of the 7cps dividend, being 2.55cps, would be paid to shareholders once all the conditions relating to the proposal were satisfied, but before the restructuring was completed.
AIA's shares were $1.91 a year ago, rising to $3.50 and closing at $3.20 yesterday.
- NZPA
