REPORTING SEASON: Sydney Airport (SYD)

Brought to you by CommSec

 

Figure 1: Sydney Airport 12 month chart

 

Sydney Airport (SYD) international passenger numbers boost first half profit.

– In the first 6 months of 2015 SYD reported a 4.6% increase in total revenue to $594.7million. This was comprised of growth from several business units – Aeronautical revenue, which grew by 4.6% to $247.1million. International passenger growth which has been a feature of recent years and remained in place over the first half of the year grew by 2.8%, while domestic passenger numbers grew by 1.7%. Additionally, retail revenue increased 3.9% to $129.9million, property and car rental revenue grew 4.8% to $101million, and car parking and ground transport revenues grew by 8.7% to $72.2million.

– The growth in passenger numbers was helped by improving load factors which rose 3.5% and by strong passenger demand particularly from China. Chinese nationals were again Sydney’s fastest growing market, up 16.8% year to date. Growth in Chinese travellers through Sydney Airport accounted for 60% of foreign nationality growth. Australian nationality travellers, the largest market at approximately half of all international travellers, grew by a robust 2.1%.

– SYD highlighted the formal nine month consultation period with the Australian government had finished in relation to the Western Sydney Airport. The government may deliver the confidential notice of intention which sets out the material terms for the stgelopment and operation of the airport by the end of the year. Sydney Airport will then have between four to nine months to respond.

– Sydney Airport has paid an interim distribution of 12.5cents p/share. The distribution represented an 8.7% growth on the prior period. The group said it remains committed to growth in distributions over the long term, thus distribution guidance has been upgraded from 25cents to 25.5cents p/share for the full year.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Tom Piotrowski, Market Analyst,