SOUTH AFRICA. Airports Company South Africa (ACSA), yesterday reported a surge in 2002/03 profits on heavy air traffic, but said this was unlikely to be matched in the years ahead.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ended 31 March 2003 jumped +25% to ZAR916.5 million (US$118.9 million). ACSA also experienced a surge in retail activity, with commercial revenue – mainly from duty free and other retail, property and advertising – growing by +24% to ZAR 629 million (US$81.6 million).
Headline earnings per share rose +32%, while total revenues increased +19% to ZAR1.6 billion (US$207.5 million).
“We are satisfied that we will be able to deliver satisfactory earnings growth going forward, but certainly not in the region of +25%,” ACSA finance director Wallace Holmes told a presentation.
He said passenger traffic volumes – which last year increased +9% to 11.1 million, boosted by the Cricket World Cup and the World Summit on Sustainable Development – were showing signs of softening.
ACSA managing director Monhla Hlahla said the national airports group would spend ZAR3.8 billion (US$492.9 million) over a five year period – starting in the 2004/5 financial year – on terminals, runways, security and other investments.
ACSA, the national airport body for the country’s ten main airports, is 20% owned by Italian airports operator Aeroporti di Roma and 75.2% by the South African government. Black economic empowerment groups own 4.8%.
Hlahla said the government and Aeroporti di Roma were reviewing their position on ACSA’s planned initial public offering (IPO) in 2004, adding that a decision would be known soon.
The IPO was initially scheduled for 2001, but was delayed because of what the government said was slow progress on the group’s transformation. The listing is part of the government’s broader privatisation programme.
