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Sydney Airport 1H2010 EBITDA outperforms traffic growth: Airport Share Wrap


Shares in MAp declined 1.4% on Thursday ahead of the release of its financial report for Sydney Airport relating to the three and six months ended 30-Jun-2010 today.

In 2Q2010, EBITDA rose 12.6% year-on-year to AUD180.2 million, on a 12.1% year-on-year increase in revenue to AUD224.0 million. Costs in the period also climbed to AUD42.8 million, up 8.6% year-on-year.

EBITDA for 1H2010 increased 12.9% year-on-year to AUD367.2 million. Revenue was up 11.9% to AUD452.7 million, while costs rose 7.9% year-on-year to AUD84.2 million. EBITDA growth outperformed traffic growth of 9.4% year-on-year.

MAp CEO, Kerrie Mather, stated “another milestone was reached in the period with Sydney Airport’s first unwrapped capital markets issue of AUD175 million, which positions the airport well ahead of its Sep-2011 debt maturities”.

Shares in MAp have gained 2.8% in early trade on the ASX today.

See CAPA profile page on MAp Airports Ltd

Melbourne Airport aiming to take market share from Sydney

Sydney Airport is facing increasing competition from Melbourne Airport, with the Victorian airport disclosing it is aiming for a 25% share of Australia’s international market.

Melbourne’s CEO, Chris Woodruff, stated it may take longer to achieve the 25% market share than the original target of five years, but believes an increase of 1% per year is sustainable in terms of ensuring infrastructure was in place to cope. Mr Woodruff stated a 13% increase in international services for FY2009-10 had helped secure what he considered Victoria's "fair share" of the market.

Mr Woodruff told The Australian the he still believes it's “probably the right number to shoot for, but I think being number two in the market means you've always got to work harder ... Airlines, if they're sitting in Delhi, or they're sitting in Narita, or they're sitting in Rio might not know Australia too well and the first thing that springs to mind is obviously Sydney. And it's the classic national carrier focus to fly stock exchange to stock exchange, so we've got to tell our story differently.

Melbourne Airport is owned and operated by Australia Pacific Airports Corporation Ltd (APAC), an unlisted company, which also owns and operates Launceston Airport. Australian Infrastructure Fund (AIX) owns a 10.1% stake in APAC. Shares in AIX dipped 0.6% yesterday.

Auckland Airport to inform Queenstown Council before additional share acquisitions

Meanwhile in New Zealand, Queenstown Lakes District councillors were given an "assurance" on 21-Jul-2010 that there would be full public consultation before Auckland International Airport Ltd (AIA) is to purchase any more shares in Queenstown Airport. Auckland Airport recently purchased a 24.99% share in Queenstown for NZD27.7 million, with an option to increase the holding to 30% to 35% at any time up to 30-Jun-2011. Councillors have opposed the deal since its proclamation.

Shares in Auckland Airport closed 0.5% lower yesterday.

Selected airports daily share price movements (% change): 22-Jul-2010

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