Auckland Airport lifts half year net profit

Auckland International Airport (AIA) today hiked its interim dividend 43 per cent after it posted a 20 per cent lift in its December half year net profit to $54.33 million.

AIA lifted its interim, fully imputed dividend from 10.5cps to 15cps after its decided to change its policy to pay out the equivalent of 90 per cent of net profit. The dividend payout totals $45.8m.

Chairman Wayne Boyd said AIA was considering a further capital payout.

"Active consideration is being given to the company's financial capacity to make further distributions to shareholders. The current intention of the board is to make a distribution in the range of $100m to $300m.

"In assessing the appropriate quantum of any further returns to shareholders, a number of important issues are being carefully reviewed, including the company's credit rating, cost of capital, available subscribed capital, imputation credits and surplus after tax.

"The underlying rationale for looking closely at another payment to shareholders is to ensure the company's financial position is optimally structured to deliver maximum value to shareholders, consistent with a robust and prudent debt profile."

AIA's board would decide on a capital repayment before the end of the year.

AIA also announced there would be a four-for-one share split, as of April 8.

Mr Boyd said with the share price over $8 the directors wanted to ensure that shares remain attractive to the company's important retail investor base which totals over 50,000.

He said the strong growth of the first half had continued into the second half and it said its forecast of a $105m annual profit was achievable.

Passenger numbers in the first half have continued to exceed the volumes experienced in the comparative period a year ago -- up 6.5 per cent.

Revenue increased 10.5 per cent to $142.7m.

Mr Boyd, said that travel by New Zealanders had underpinned the result.

"Increased numbers of New Zealanders travelling overseas contributed strongly to a 9.6 per cent rise in international passengers (excluding transits and transfers). Domestic passenger numbers increased 5.3 per cent.

The airport company said that it was now processing over 11 million passengers on a rolling 12-month basis.

"Analysis of international arrivals by country illustrates that a 19.2 per cent increase in New Zealanders travelling was the major contributor to growth during the period," Mr Boyd said.

"In the case of New Zealanders, the continuing strength of the New Zealand dollar has been a further travel stimulant."

Mr Boyd said the recent announcement that Pacific Blue would begin trans-Tasman services from Auckland in May would provide further impetus to AIA.

Total aircraft movements in the year rose to 79,902 from 76,028 a year earlier. International passenger arrivals rose to 3,079,383 from 2,810,150.

AIA shares closed at $8.38 yesterday having risen from $6.72 a year earlier.

- NZPA