Airports Company South Africa, owner of South Africa’s nine principal airports with additional operations in Brazil and India, has reported an 8.9% increase in revenue in the year ended 31 March 2015.
- Revenue increased by 8.9% to R7.7 billion (2014: R7.1billion)
- Aeronautical revenue R4.9 billion (63% of total revenue)
- Non-aeronautical revenue R2.8 billion (37% of total revenue)
- Operating profit increased by 17.2% to R3.8 billion (2014: R3.2 billion)
- After-tax profits decreased by 8.5% to R1.6 billion (2014: R1.7 billion)
- Capital expenditure decreased by 11% to R826 million (2014: R928 million)
“I am proud of the performance and progress achieved in the past financial year. Driven by a passionate workforce, Airports Company South Africa is steadily achieving its vision of being a world leading airports business by focusing on the customer. Despite a volatile global and challenging local economy, Airports Company South Africa has nonetheless shown good financial performance,” CEO Bongani Maseko said.
The group continued to produce strong results in the year ended 31 March 2015, achieving after-tax profits of R1.6 billion, albeit an 8.5% decline from R1.7 billion in 2014. “We continue to ensure that both the funding and cost of borrowing are well managed. The resulting decrease in financing costs and debt levels has allowed us to continue to deliver on all investor commitments,” Maseko said.
Profitability was driven mainly by strong aeronautical and non-aeronautical revenue performance along with an increase in the fair values of our investment properties. Weak growth in the South African economy was expected to place a strain on passenger numbers.
“Despite this, the group experienced a 2.4% increase in departing passenger numbers from 17.4 million in 2014, to 17.8 million in the current year. This increased both aeronautical and non-aeronautical revenue performance,” he said.
Total assets remained stable at R27.4 billion, compared to R27.9 billion in 2014. Cash generated by operations increased by 4.1% to R4.6 billion, up from R4.4 billion in 2014. The company continued to minimise its cost of borrowings through early debt redemptions where possible, reducing its debt burden by a full R1.9 billion during the period in review.
Airports Company South Africa continues to seek enhancement of shareholder value by increasing profitability, ensuring that funding and the cost of borrowing are well managed whilst preserving liquidity levels, added Maseko.
Maseko believed the company would continue to identify and secure new business opportunities. It would achieve this by providing commercially viable airport management solutions for South African and airports internationally.
Amongst other initiatives Maseko indicated that in the next three years Airports Company South Africa planned to develop a model to secure new business in Africa and other emerging markets, accelerate the company’s sustainability and transformation programme, rolling out an information technology strategy and engage with industry players and legislators on the company’s regulatory and funding framework.