Auckland International Airport (AIA) is expected to be a major beneficiary of the Rugby World Cup later this year and the results are expected to flow on to the 2012 financial year.
The company yesterday reported earnings before interest, tax, depreciation and amortisation of $398.1 million for the year ended June, up 8% on the $276.4 million reported in the previous corresponding period (pcp).
Profit after tax rose 15.1% to $120.9 million, and the dividend per share increased 6.1% to 8.7c, including a final dividend of 4.7c.
In the year, passenger numbers grew and income from retail sales and car parking rose.
Forsyth Barr broker Peter Young said AIA was a sound investment story given its control of New Zealand's major gateway and New Zealand's positive longer-term tourism outlook.
"We are encouraged by the focus on boosting air links with Asian carriers, tightening operational capital expenditure, leveraging its land bank and the success of its retail and parking initiatives," he said.
AIA chief executive Simon Moutter said much of the strength of the announced underlying profit for the year to June resulted from a 9.6% rise in total income to $398.1 million.
Key drivers of that growth were better than expected retail results in the new departures area and a stronger yield in car parking, particularly through a new online booking channel.
Operating costs were up 14.6% to $99.5 million, largely flowing from higher promotional costs related to the successful launch of several new services including China Airlines, China Southern Airlines and Jetstar to Singapore.
As well as Auckland Airport, the company has investments in Cairns Airport and Mackay Airport in Queensland, and Queenstown Airport.
At Auckland, international passenger numbers grew 4.9% to 7.8 million and domestic passenger numbers held firm with six million.
In North Queensland, international passengers through Cairns rose 20.7% to 750,000 and domestic passengers grew 6.1% to 3.2 million.
Domestic traffic at Mackay increased 14.3% to one million. At Queenstown, international passenger numbers grew 49.7% to 160,000 and domestic numbers grew 8.4% to 760,000.
Chairwoman Joan Withers said net profit, excluding fair value changes and other one-off items, was expected to be in the $130 million range in this financial year, although she was cautious about implications of volatility in global financial markets.
Mr Young said AIA remained well positioned for any further recovery in passenger growth in the next 12 months to 24 months and was a low-risk exposure to New Zealand's long-term tourism growth potential.
Forsyth Barr retained its buy recommendation on the company's shares.
