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AIA Profits Up 2.1pc, Revenue Up 5.2pc In Full Year Results

Fuseworks Media
Fuseworks Media

Wellington, Oct 29 NZPA - Auckland International Airport has reported a 2.1 percent increase in profit, with revenue up 5.2 percent for the year to June in results released today.

The country's biggest airport made a net profit after tax of $105.9 million, up on last year's $103.7m, with revenues increasing to $369.2m.

The company's earnings before interest, tax and depreciation (Ebitda) increased 1.6 percent to $280.4m, while decreasing capital expenditure 38.7 percent to $87.6m.

Its operating earnings before interest, tax and depreciation increased 1.6 percent to $280.4m, airport chairman Anthony Frankham said.

"Our increased investment and focus on aeronautical business development to grow the air-services that are so critical to New Zealand are bearing fruit."

The company had strengthened its balance sheet and debt maturity profile during the year, including two retail bond issues raised $180 million in total, he said.

The board had decided to put off further construction of a second runway for another year, "to allow demand to 'catch up'," with long-term trends indicating passenger volumes would eventually return, he said.

Auckland Airport had launched a pilot scheme for biometric facial recognition software, allowing automated border processing. The full system would be implemented in arrivals from December 2009 and in departures from late 2010.

"I believe that the prudent investment and governance decisions made by the Board over the last few years have ensured stability and have, to date, allowed Auckland Airport to ride out the economic storm well," Mr Frankham said.

Figures for the three months from June indicated growing numbers of international travellers passing through the airport, up 1.2 per cent to 1.6 million, excluding transits and transfers.

Domestic passenger movements were up by 5.1 per cent to 1.5 million.

"We estimate that each additional one million arriving international passengers delivers around $2.5 billion of value to the New Zealand economy, and we believe this should be our greatest priority," Mr Frankham said.

"We do not wish to become mired in debates amongst economists and lawyers, and risk losing sight of the bigger prize; that is, our potential to contribute to a recovery from recession by stimulating trade and tourism."

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