"Sydney Airport expects passenger numbers to continue to rise"

Wednesday, January 19, 2005

Sydney Airport expects passenger numbers to continue to rise
The Australian Associated Press


SYDNEY, AAP - Sydney Airport expects continued growth in passenger numbers
after posting a strong increase in first half earnings on the back of its
busiest six months on record. Sydney Airport's parent company Southern Cross
Airports Corporation Holdings Ltd (SCACH) today reported a 14.7 per cent
increase in first half earnings before interest, tax, depreciation and
amortisation (EBITDA) to $245.7 million. Including specific non-recurring
expenses, EBITDA was up 18.2 per cent to $243.8 million. Macquarie Airports
chief executive officer Kerrie Mather said the EBITDA growth and 13 per cent
revenue growth were both ahead of total passenger growth for the period of
8.5 per cent. "The traffic performance for the six months to 31 December `04
has been very pleasing with Sydney experiencing its busiest six months
ever," Ms Mather said. "We anticipate this growth will continue as new
services and airlines are introduced." Revenue rose to $306.7 million in the
six months to December 31, 2004, a 13 per cent increase over the previous
corresponding period. The revenue increase was attributed to passenger
traffic growth from new airline services, improved yields from commercial
initiatives and increased property revenues. "An increase in carriers
combined with more streamlined operations and a strong commercial
performance continued to augur well for Sydney Airport's financial
performance, resulting in the 10th consecutive quarter of double digit
EBITDA growth since privatisation," Sydney Airports Corporation Ltd chairman
Max Moore-Wilton said. Ms Mather said the retail operation had performed
well in the half as retail revenue rose 13.1 per cent to $73.8 million.
"Retail has performed well driven by a number of initiatives at both the
domestic and international terminals," she said. "The retail result over the
six months benefited from positive contributions from the duty free
walk-through stores in international departures and arrivals, the new
branded T1 food court and the expanded T2 retail precinct." EBITDA per
passenger rose to $17.05 in the first half, up from $16.13 in the previous
first half. Sydney Airport also benefited from improved property revenue,
which rose 16.4 per cent to $39.5 million. Further property development is
expected in 2005 including an expanded DHL base and the Accor FI Hotel.
Total operating expenses excluding specific non-recurring expenses rose 6.6
per cent to $61 million. However, including specific non-recurring expenses,
total operating expenses fell 3.7 per cent to $62.9 million.


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