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Figure 1: Sydney Airport 12 month chart


Passenger numbers underpin revenue growth for Sydney Airport

 SYD enjoyed solid passenger numbers over the course of 2014. A 2.8% increase in international passenger growth was underpinned by Asian travellers. In particular, Chinese nationals were again the fastest growing segment rising 16.4% in 2014. Growth in Chinese travellers through Sydney Airport accounted for 50% of all international passenger arrivals.

 Passenger numbers paved the way for growth of more than 4% in revenue. There was a 4.9% lift in aeronautical revenues to $486.8 million, Retail revenue increased 5.6% to $255.2 million in 2014 over the course of the year. During the period the duty free contract was retendered with the appointment of Gebr Heinemann. The new contract formally commenced on 17 February 2015 and will run for seven and a half years.

 SYD offered a positive outlook to the extent that it plans to distribute 25.0 cents per stapled security for 2015 reflecting confidence in the continued growth in free cash flow. This compares to the full year payment 23.5 cents in 2014. The final distribution of 12.0 cents per stapled security was paid on 12 February 2015.


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Tom Piotrowski, Market Analyst,