NZ's Auckland Airport To Post 13% Rise In 1H Net Profit

Friday February 20, 2004

NZ's Auckland Airport To Post 13% Rise In 1H Net
Profit
Yahoo News
 
WELLINGTON (Dow Jones)--Auckland International Airport
Ltd. (AIA.NZ), New Zealand's main visitor gateway, is
expected to comfortably exceed last year's first half
earnings thanks to record passenger numbers in the
current Southern Hemisphere summer. 

First half net profit is expected to be NZ$45 million,
up 13% from last year's NZ$39.7 million, according to
the median of six analysts polled by Dow Jones
Newswires. The results are due Monday. Profit before
interest and tax is forecast at NZ$83 million, up 14%
from NZ$72.9 million. 

"Passenger numbers are going to be robust
internationally, and also domestically," said Rob
Bode, analyst at First NZ Capital. 

Bode is forecasting 12% growth in passenger numbers,
consisting of a 9% rise in international passengers
and a 15% jump in domestic passengers. 

An analyst at a local brokerage, who declined to be
named, is tipping overall passenger growth of just
under 14%, with the robust Southern hemisphere summer
period providing a "nice lift." 

"You have to say the company is in pretty good health
given all these capacity increases," he said. 

New Zealand's popularity as an international tourist
destination has grown steadily over the past few years
with favorable publicity in travel publications and
various overseas polls choosing it as a top
destination. 

The country's international profile got a significant
boost in 2002 and 2003 with the screening of the Lord
of The Rings trilogy, which was filmed in New Zealand
and showcased the country's scenic beauty. 

Auckland Airport said last month that it has had
record weekly passenger numbers since November, helped
by 30% increase in international seat capacity for
airlines operating at the airport during New Zealand's
summer. 

First NZ Capital's Bode said that retail activity,
which makes up a key chunk of the airport's revenue,
should reflect the steady passenger volume growth.
"But it's always a wild card as to the spend per
person." 

Bode said the airport's earnings outlook will remain
positive in the absence of any debilitating events
like last year's war in Iraq and SARS, which hurt
Auckland Airport's second half earnings. 

The company posted a 7.4% rise in annual net profit
before abnormal gains to NZ$76.8 million in its last
financial year. 

In November last year, the airport operator said it is
comfortable with market expectations of a net profit
of between NZ$86 million and NZ$88 million for its
financial year ending June 30, 2004. 

It also said that net profit for the first four months
of the current financial year was NZ$28.2 million,
11.8% higher than the same period the year before. 

Mark Devereux, a broker Forsyth Barr, said the company
has consistently delivered strong earnings growth. 

"The market is pretty much anticipating a good
result...I don't think there'll be any
disappointment," he said. 

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************