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“The new retail mix on offer at Sydney Airport delivered a double-digit growth in total retail revenue, well ahead of international traffic growth in particular“ |
Kerrie Mather CEO MAp Airports |
AUSTRALIA. Sydney Airport retail revenue climbed by +12.2% year-on-year in the six months to 30 June, hitting A$102.6 million (US$91.6 million). The figures were partly buoyed by the opening of the new-look International Terminal, though this did not fully open until June.
Total revenues at Sydney Airport Corporation Limited (SACL) were A$452.7 million (US$404.3 million), an increase of +11.9% on the previous corresponding period (pcp). EBITDA rose by +12.7% (excluding specific expenses) to A$367.2 million (US$323.9 million) in the half.
In the second quarter retail revenues climbed by +14.5% to A$51.1 million (US$45.6 million), with total revenues rising by +12.1% to A$224 million (US$200 million). The strong Q2 results were well ahead of international passenger traffic, which rose by +5.8% in the period.
SACL noted: “The first half of the year saw a continuation of strong traffic growth of +9.4% overall. Growth continues to be largely driven by substantial increases in Australian outbound demand, supported by strong increases from some key inbound markets including New Zealand, the US, China and Korea.
“Retail revenue for the quarter continues to be supported by strong passenger growth and the official unveiling of the new selection of world-class retailers at the International Terminal, which includes Thomas Sabo, L’Occitane, Tigerlily, R.M.Williams, Pandora and Australia’s first Victoria’s Secret outlet. Passengers have also been able to enjoy the arrival of new food & beverage outlets such as Black Tonic and Montreux Jazz Café.
“Ground transport and commercial services revenues continued to benefit from the traffic recovery and new product innovations, such as E-Park. Property revenue growth was solid in the quarter reflecting the low level of vacancies. During the quarter, construction of the Central Terrace Building commenced. This is a nine storey 9,000sq m building in the international precinct underpinned by a lease pre-commitment from a major government agency.”
Kerrie Mather, CEO of majority shareholder MAp Airports, said: “Sydney Airport is seeing the benefit of the A$1.7 billion investment made since 2002 to support growth and meet passenger needs at the domestic and international terminals. The recent completion of the International Terminal redevelopment and the runway safety areas represent significant milestones for passengers and airlines travelling through Sydney.
“Sydney Airport also recently welcomed the opening of the new Qantas Domestic Transfer Facility at the International Terminal, which provides a faster seamless transfer for Qantas passengers. A further A$1.0 billion has been earmarked by Sydney Airport for ongoing investment over the next five years, in line with airlines’ priorities.
“The redesign and upgrade of Sydney Airport’s services and facilities is delivering great value for the 90,000 passengers who travel through Sydney daily. The new retail mix on offer at Sydney Airport delivered a double digit growth in total retail revenue well ahead of international traffic growth in particular.”
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Sydney Airport retail revenues jumped by double digits in the second quarter and first half |
Note: Sydney Airport’s new International Terminal was the subject of a major supplement, published this week by The Moodie Report. Click here to access the report.
