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Kerrie Mather: “We have several major commercial initiatives underway and continue to focus on increasing productivity at our airports.” |
INTERNATIONAL. Macquarie Airports (MAp) expects commercial activities to help drive growth across its portfolio in 2008. That was the message from company CEO Kerrie Mather as she unveiled full-year 2007 results for the group (to 31 December).
The core portfolio delivered +8.7% EBITDA growth in the year, to A$920.1 million (US$840.5 million). Revenue more than doubled to A$1.5 billion (US$1.37 billion) and profit attributable to shareholders grew +84.2% to A$1.1 billion (US$1.0 billion).
Ms Mather said: “2007 was a busy and successful year for MAp. Our core portfolio has delivered +8.7% EBITDA growth driven by some notable airline marketing successes and delivery of several key commercial initiatives.
“We have also increased our interests in several of our major airport assets without needing to raise additional capital and have made a long term strategic investment in a new market, Japan. At the same time we successfully exited our investments in Rome and Birmingham at substantial premiums to valuation, generating significant security holder value.”
And she sounded an upbeat note about the year ahead. “There is currently much debate about the economic outlook,” she said. “MAp’s airports are well-positioned to continue to benefit from major industry developments such as the rapid growth in low cost carriers and significant forward orders of new generation aircraft. Equally, we have several major commercial initiatives underway and continue to focus on increasing productivity at our airports. We expect continued delivery across the portfolio.”
Within its current portfolio, MAp identified some key commercial opportunities:
At Sydney Airport, these include a new 3,000-space car park in the International Precinct, the development of new offices and the new International Terminal, where work has just begun.
At Copenhagen Airport, the effect of the new walk-through store will improve income in the year ahead, as will new retail initiatives, said MAp.
At Brussels Airport, the relocation of the Pier B security area will boost the business, as will the development of Brussels Airport’s property portfolio.
And at Bristol Airport, the number of security channels will be doubled, the catering offer will be enlarged and more space will be added to the Departures lounge.
Currently, the MAp portfolio comprises 77 million passengers (moving annual total to December 2007), 50,000sq m of retail space, 370 outlets and 56,000 car parking spaces.
MAp maintains a bullish long term traffic growth forecast of +4% to +5% per annum. In 2007, passenger traffic numbers across its portfolio rose by +5.4%.
Among other forthcoming opportunities, MAp listed this year’s privatisation programmes at Chicago Midway, Prague and Nantes airports.
As we reported this week, Copenhagen Airport, part of the MAp portfolio, saw a dip in concession income in 2007. This followed the appointment of a new duty free retailer, Gebr Heinemann, at lower minimum guarantee levels than under the previous incumbent The Nuance Group. In addition, revenues were affected by work surrounding the development of the new walk-through store in Departures.
But MAp said the new store was on target to deliver growth in 2008. Concession revenue dipped -13.9% in Q2 2007 (compared to Q2 2006) while work was underway on the store; it was down -6.1% in Q3 after the opening, and by Q4 was up +0.8% on the previous year. Sales per passenger also improved on previous-year levels following the opening, said MAp.
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MORE STORIES ON MACQUARIE AIRPORTS
Double-digit increase in retail revenues aids full-year growth at Brussels Airport – 08/02/08
Retail revenue rises +8.4% at Sydney Airport in 2007; outstrips passenger growth – 18/01/08
International passenger traffic buoys Macquarie Airports’ portfolio in November – 20/12/07
