"Macquarie Airports sees blue skies"

Tuesday, August 24, 2004

Macquarie Airports sees blue skies
Australia - The Sydney Morning Herald


Macquarie Airports securities have hit an all time high after the airport
manager almost tripled half year net earnings and forecast a higher
distribution for 2005.

Macquarie Airports, which has a major stake in Sydney Airport, reiterated
its projected second half distribution of eight cents and predicted a 2005
full year distribution of 17 cents per stapled security.

"We are delivering strong results across the portfolio," chief executive
Kerrie Mather said.

"The outlook for the remainder of 2004 is positive in terms of the sector
and the performance of our airports."

Ms Mather said the 2005 distribution forecast of 17 cents - to be paid as a
10 cents per security interim distribution and seven cents final - would
represent an increase of 42 per cent over 2004.

Macquarie Airports securities reached a record high of $2.39.

Macquarie Airports said net profit attributable to security holders in the
six months to June 30, rose to $345.25 million, from $126.64 million in the
2003 half.

The result was above market expectations of $170 million.

Revenue was $536.02 million, up from $163.78 million.

It confirmed an interim distribution of four cents paid on August 18.

Macquarie Airports, which also holds stakes in Rome, Bristol and Birmingham
airports, said the result was driven by performance improvements at its
airports and a recovery of passenger confidence in air travel.

Over the half, average weighted revenue rose by 10 per cent and earnings
before interest, tax, depreciation and amortisation rose by 16 per cent.

At June 30, 2004, Macquarie Airports held a 55.5 per cent interest in Sydney
airport, 33.6 per cent of Rome, 30.8 per cent of Bristol and 14.9 per cent
of Birmingham.

Total assets were valued at $3.61 billion at the end of the half, up from
$1.99 billion in 2003.

In an update of airport activities, Ms Mather said Sydney Airport,
comprising 62.3 per cent of its portfolio, would see an additional 45 weekly
airline services in the coming northern winter - a nine per cent rise in
capacity on last year.

The expansion of air rights between Australia and Hong Kong announced in May
had already led to an lift in capacity while the trans Tasman route was
expanding and now accounted for 20 per cent of Sydney's activity.

"Looking forward the focus on the airline market at Sydney will on
developing international markets from the US, Europe, Middle East and Asia
and ensuring that Sydney will obtain the maximum benefit from the A380
(services) commencing in 2006," said Ms Mather.

The Rome airports - Fiumincino and Ciampino - comprising 24 per cent of the
portfolio, continued to perform strongly.

Some 130 new weekly services were being added between April and November
making for a 10 per cent capacity lift.

Ms Mather said low cost airline activity was expanding and Rome was seeing
the return of large US carriers.

Birmingham airport is targeting low cost carriers on new routes to Europe,
following the collapse of charter airline DUO and cuts to Ryan Air services.

It is also looking at niche markets such as the Indian subcontinent.

Traffic at Bristol continued to grow strongly and with 121 new weekly
services - a 47 per cent increase in capacity - commencing or announced to
commence during the northern summer season, Macquarie Airports said.


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