REPORTING SEASON: Sydney Airport (SYD)
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Figure 1: Sydney Airport 12 month chart
Sydney Airport (SYD) posted a solid uptick in passenger growth and profit.
· Sydney Airport (SYD) reported a strong uptick in passenger numbers and aviation revenues over the last half. Helping to lift SYD’s profit after tax to $53.9Million. International passenger numbers were boosted by sporting and cultural events especially the Ashes and Chinese New Year travel.
· SYD listed continued growth and momentum across all of its businesses, delivering improved customer experience statistics. With the biggest growth in international passengers coming from Malaysia (up 22.5%) and Hong Kong (up 17%).
· Earnings before Income Tax, Depreciation and Amortisation (EBITDA) grew by 6.1% (Y/Y) aided by international passenger seat growth which was up 2.9%. This in turn helped lift total aeronautical revenue by 5.7%. Aeronautical revenues were helped by new landing configurations, terminal and baggage planning improvements and an additional A380 gate.
· Expenses only grew slightly over the period and finance costs lifted by 20%
· Sydney Airport reaffirms its distribution guidance of $0.235 per share for FY14 to be fully covered by Net Operating Receipts. SYD has already paid out its 1H dividend to investors on the15th of August 2014