NEW ZEALAND. Christchurch International Airport Limited (CIAL) has today reported a significant lift in financial performance in FY2015 (note: This news was strictly embargoed until 6am New Zealand time today/7pm UK time, 8 September).
CIAL announced underlying net profit after tax up +110% to NZ$37.8 million (US$24 million) and total declared dividends up +171% to NZ$20.6 million (US$13.1 million).
It grew total operating revenue +21.9% to NZ$159 million (US$101 million), with non-aeronautical revenue up +9.7% to NZ$90.7 million (US$57.6 million), and aeronautical revenue notching a +43.2% increase to NZ$68.3 million (US$43.4 million).
Despite the recent slashing of Customs allowances for duty free purchases of tobacco in both Australia and New Zealand, CIAL grew passenger spend rates in the terminal by +4.2% in the year.
The airport also introduced a number of customer driven enhancements to increase the choice and range of cost options for airport users needing car parking.
As reported, CIAL last week completed the extension of JR Duty Free’s concession contract out to the middle of 2023 on the back of the retailer’s strong performance to date, with positive customer feedback and mutually agreed growth aspirations over the coming years.
CIAL Chief Executive Malcolm Johns welcomed the results and paid tribute to the airport’s staff.
“Our team has kept us at the top of independent customer experience surveys for airports across Australia and New Zealand, which means we’ve been there for three years in a row now, something we are all very proud of,” he said
“We are very focused on continuing to enhance our retail offerings to our visitors and working hard to keep increasing the range of product and purchasing choices available to airport users across our whole product range.
“Airport visitors can expect to see us continue to innovate in this area and to see new choices announced over the next year.”
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Completion of its terminal renovation programme positions Christchurch Airport well for future growth in non-aeronautical revenue |
A step change
CIAL Chairman David Mackenzie said the result reflects a step change within all areas of the business over the past year.
“We’ve seen strong international passenger growth, new aeronautical pricing (reflecting the investment in the new terminal) and the airport’s property development programme continuing to gather pace,” Mackenzie said.
Christchurch Airport saw a +7% increase in international passenger movements for the year, to 1.45 million, with domestic passenger movements increasing +3.3% to 4.48 million.
Net profit before tax of NZ$50.2 million (US$43.4 million), up +113% on the previous financial years, includes underlying operating profit of $36.3 million (US$23 million), a one-off gain on the sale of assets of $5.1 million (US$3.2 million), and investment property revaluation gains of $8.8 million (US$5.6 million).
“The airport company expects to be in a position to significantly increase the percentage of profits paid out in respect to FY16,” Mackenzie said.
Mackenzie noted that the airport has reset strategy to concentrate on growing international passenger numbers, with particular focus on Australia and Asia, as well as maintaining solid progress in its property development programme.
“The past year has seen us complete Mustang Park, the new tourism transport hub to the north of the terminal, with Tourism Holdings Limited recently moving into its new campervan site there.
“The new retail development, the 6,100sq m Spitfire Square, has been completed and the Countdown supermarket is open. We will see the other outlets open progressively over coming months,” he said.
Post-earthquake era
Johns observed that the past year clearly signals the airport company is moving into the post-earthquake era (as reported, Christchurch suffered a series of devastating earthquakes from 2010 to 2012).
“We have seen solid revenue growth off the back of some dedicated and hard work by our business development teams, both in Christchurch and on the international stage.
“We’ve also seen some outstanding work by our operational teams, in maintaining a top shelf customer experience for all our airport users.”
The airport enjoyed strong growth in both airline seats and passenger numbers over the past year. International passenger numbers rose +7% and international freight volumes rose +9%.
Passenger load factors on international flights rose +5% to an average of 86%. Key growth markets were Australia +7%, Southeast Asia +7%, China +53% and India +37%.
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The FY2015 summary for CIAL |
