Melbourne Airport

Media

End of year results for Melbourne Airport operator

Aug 27, 2007

Australia Pacific Airports Corporation (APAC), the operator of Melbourne and Launceston Airports, today announced a post-tax profit of $158 million, an increase of 1% on the previous year.


APAC’s operating profit increased by 10% to $270 million. Overall revenue was up 10% to $384 million, driven by a strong performance of the Australian domestic air travel market, significant growth in the company’s property developments, and strong growth in APAC’s long term car parks at Melbourne and Launceston Airports.

Don Mercer, Chairman of APAC said that APAC’s strong performance was reflected in the company’s consistent strong investment in airport infrastructure.

“A successful airport business that generates strong returns for its shareholders is ultimately a great community asset, because it gives shareholders the confidence to invest in capital works –which ultimately benefit the community it serves,” he said.

“APAC fits into this category. It is a successful business with confident shareholders predisposed to investments in expansions, upgrades and joint ventures.”

APAC, which recently entered its 10th year of operating Melbourne Airport, invested more than $100 million into capital works at Melbourne Airport during the 2006/2007 financial year. This investment is more than any single year to date, indicating the company’s clear confidence in the airport’s – and Melbourne’s – futures.

Chris Barlow, who is retiring as CEO and Managing Director of APAC, said 2006/2007 represented a strong year with many highlights for the company.

The company’s retail revenue continued its strong performance, delivered through a simple mantra: deliver a good product and the right price.

Mr Barlow said the airport had undertaken extensive research of its car park users, with improvedairport parking options and competitive price points being the result.

“More people are choosing to park at the airport – and importantly our surveys tell us that they are very happy with the developments,” said Mr Barlow.

APAC’s Property & Rental revenue performed strongly during 2006/2007, increasing by 12%. Melbourne Airport’s Business Park saw a series of major brand names open their doors onsite during the year, including warehouse and distribution centres for Kathmandu, The Reject Shop and Caterpillar Logistics, along with a sales and service centre for Mercedes-Benz.

A major win for the company during 2006/2007 was the announcement of new Australian domestic carrier Tiger Airways’ decision to establish its Australian base at Melbourne Airport.

“The competition from airports across Australia to become Tiger Airways’ base was incredibly fierce,” said Mr Barlow. “Tiger’s decision is a great reflection on the APAC team, and the cooperative approach we take to working with our airline partners.”

“Furthermore, Tiger’s recent announcement that it will operate daily Tasmanian services from Launceston Airport is another great win for APAC.”


FINANCIAL RESULTS - APAC

Year ended 30 June ($ millions)1998199920002001200220032004200512006120072Change 06 to 07
Aeronautical 50 50 53 57 57 91 112 126 136 147 8%
Retail 53 61 68 77 80 90 106 123 138 156 13%
Property and Rental 28 32 36 41 42 37 40 44 42 47 12%
Security and Other 13 14 14 20 22 25 28 30 32 34 6%
Total Revenue 144 157 171 195 201 243 286 323 348 384 10%
Operating Expenses 47 48 48 55 65 74 83 93 102 114 12%
Operating Profit 97 109 123 140 136 169 203 230 246 270 10%
Investment propertygains 0 0 0 0 0 0 0 0 91 77 (16%)
Profit before borrowing costs, depreciation and amortisation 97 109 123 140 136 169 203 230 337 347 3%
Depreciation and
Amortisation
26 32 34 35 36 40 45 38 34 37 9%
Interest 103 107 109 137 97 97 90 80 80 84 4%
Profit / (Loss)
Before Tax
(31) (30) (21) (32) 3 32 68 112 223 226 1%
Tax Expense /
(Benefit)
0 0 0 (22) 5 13 27 33 67 68 2%
Net Profit / (Loss) (31) (30) (21) (10) (2) 19 41 79 156 158 1%
1: A-IFRS
2: New investment property policy



PASSENGER VOLUMES - MELBOURNE AIRPORT

Year ended 30 June (millions)1998199920002001200220032004200520062007Change 06 to 07
International 2.56 2.73 2.99 3.36 3.41 3.28 3.76 4.30 4.38 4.53 3.4%
Domestic 11.41 11.64 12.34 13.56 12.81 13.48 15.23 16.30 16.88 17.81 5.5%
                       
Total* 14.20 14.58 15.57 17.24 16.48 16.92 19.16 20.78 21.43 22.50 5.0%
*Total includes transit passengers


AIRCRAFT MOVEMENTS - MELBOURNE AIRPORT

Year ended 30 June (thousands)1998199920002001200220032004200520062007Change 06 to 07
International 17.8 18.2 20.5 23.1 22.6 21.3 24.0 28.0 25.2 24.1 (4.4%)
Domestic 126.2 136.2 142.7 162.0 133.1 135.0 140.0 151.2 152.9 154.8 1.1%
                       
General Aviation 10.1 2.4 1.5 2.3 1.9 1.6 1.3 1.3 1.2 1.3 8.3%
                       
Total 154.1 156.8 164.7 187.4 157.6 157.9 165.3 180.5 179.3 180.2 0.5%


PASSENGER VOLUMES – LAUNCESTON AIRPORT

Year ended 30 June (millions)1998199920002001200220032004200520062007Change 06 to 07
Domestic 0.54 0.52 0.54 0.52 0.53 0.58 0.67 0.82 0.92 0.99 7.6%


AIRCRAFT MOVEMENTS – LAUNCESTON AIRPORT

Year ended 30 June (thousands)1998199920002001200220032004200520062007Change 06 to 07
Regular public transport 10.5 10.1 10.8 13.3 9.2 7.5 7.9 9.3 9.5 9.7 2.1%
General Aviation 24.0 19.0 16.8 13.1 12.4 7.4 7.4 5.7 5.5 4.8 (12.7%)
                       
Total 34.5 29.1 27.6 26.4 21.6 14.9 15.3 15.0 15.0 14.5 (3.3%)

 

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