Macquarie Airports profits gain altitude
By Brian Robins
January 20, 2005
Sydney Airport is well on the way towards earning $500 million in the financial year to June 30, posting a gross profit of $243.8 million in the six months to December 31.
The gross profit, or earnings before interest, tax, depreciation and amortisation, for the December half is up from $206.2 million a year earlier.
And earnings momentum shows little sign of slowing, with the introduction of the $2 taxi levy late last year and the newly completed office block in front of the international terminal already fully leased.
The strong profit rise was earned on a 13 per cent increase in revenue to $306.7 million.
Reflecting continued optimism over the earnings performance of the airport, shares in Macquarie Airports, which has 55.5 per cent of Sydney Airport, rallied further on the results, closing up 6c at $3.36 after touching a new high of $3.39.
Earlier this week, Sydney Airport finalised the initial contracts for the $100 million upgrade needed to handle the new-generation Airbus A380 aircraft, a double-decker plane unveiled this week, which is expected to come into service late next year.
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AdvertisementThe airport will have four bays to handle this aircraft, which will be increased to six in the ensuing years.
As well, construction is under way on a further 700 parking spaces in the domestic car park and another 2000 in the long-term car park, the company said.
Site work is also under way on the Accor F1 hotel development and the second stage of the DHL freight base.
In the December half, capital spending at the airport totalled $39.3 million.
"Sydney Airport faces some operating challenges associated with further passenger growth," Standard & Poor's analyst Colin Atkin said.
"The airport will also need to manage the increased capital expenditure demands as the air transport industry continues to evolve, with developments such as the arrival of the new A380 jets in 2006."
By sector, the strongest growth in revenue was from the property division, up 16 per cent, reflecting recent initiatives by Sydney Airport to lift its offering.
Retail sales are ahead by 13 per cent, thanks to a reconfigured retail offering at the international terminal and an expansion at the domestic terminal.
Source: http://www.smh.com.au/articles/2005/...110810090.html
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