AIA outlook raised after results beat forecasts

Chris Timms.
Chris Timms.
The financial results for Auckland International Airport ticked all the right boxes for Craigs Investment Partners broker Chris Times yesterday.

The company beat Craigs' forecasts for revenue, across all segments; and costs were in line, except marketing spending which was $1 million lower than expected.

The outlook for the full financial year had been raised to an underlying reported profit of between $167 million and $174 million.

The duty-free concession tender had been awarded to two new candidates.

Management indicated the new contracts should deliver an extra $5 million in profits from 2016, which was better than Craigs had expected.

''The earnings per share were up, another good sign. All in all, this result is up right across the board,'' he said.

The company, which owns a share of Queenstown Airport, reported an operating profit of $189.1 million for the six months ended December, up 6.3% on the $177.9 million reported in the previous corresponding period.

Revenue was up 5.4% at $251.1 million, and expenses were up 2.8% at $62.3 million.

Interest expenses were up 35% at $43.7 million and tax was slightly down at $31.8 million.

The reported profit was $92.8 million, up 8.1% on the pcp.

The dividend of 7.3c per share was slightly down on Craigs' forecast of 7.5c.

AIA chairman Sir Henry van der Hayden said the results showed the company had continued to grow in recent years.

''We have continued to implement our strategy of growing travel markets, strengthening our consumer businesses, achieving operational efficiencies and investing in our property and long-term infrastructure.''

The focus on strategy had resulted in new air routes, capacity and services; new retailers with a growing range of products and services; and the delivery of new or upgraded infrastructure in the domestic and international terminals.

The increase in revenue was in part achieved as a result of strong aeronautical performance, property rental and transport income, he said.

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