Transurban Group (ASX: TCL), Australia’s largest toll road operator and owner, today reported its 2018 financial year (FY18) results.
Transurban’s key assets include toll roads in Melbourne (CityLink), Sydney (many roads) and Brisbane (M7).
3 Highlights From Transurban’s Report:
- Toll revenue up 9% to $2.3 billion
- FY18 distributions to investors totalling 56 cents per unit/share
- Proportional EBITDA up 10% to almost $1.8 billion (click here to learn what EBITDA means)
Transurban continues to invest in its roads throughout Australia, including the upgrade of Melbourne’s West Gate Bridge and development of Sydney’s NorthConnex. The projects are in response to Australia’s rapidly growing population and number of cars on the road.
During FY18 Transurban reported a 2.2% increase in average daily traffic. Transurban’s CEO, Scott Charlton said his focus is on improving the customer experience.
“The launch of our retail tolling brand Linkt makes it easier for customers to find a toll travel arrangement that’s right for them,” Charlton said.
Across Transurban’s network, Sydney grew its proportional toll revenue 8% to $944 million thanks, in part, to a 3.1% increase in daily traffic.
Transurban said the timing of NorthConnex, the 9km road in northern Sydney connecting the M1 Pacific Motorway to the M2 Hills Motorway, is currently “under review” but the project remains on budget.
In Melbourne, Transurban’s revenue rose 13% to $780 million with a 1.4% increase in traffic.
“Now that the CityLink Tulla Widening and Monash Freeway Upgrade projects are complete customers are benefitting from additional capacity and quicker travel times,” Charlton said.
“In addition the West Gate Tunnel Project is progressing well and we welcome the certainty the planning scheme amendment provides.”
In Brisbane, toll revenue and traffic rose 2.1% and 2.6% respectively.
According to data compiled by Bloomberg, analysts had been expecting a profit of $456 million from Transurban. The company reported a profit of $485 million.
Outlook
Looking into its 2019 financial year, Transurban forecasts paying distributions of 59 cents per unit/share, of which 2 cents will be fully franked.
The Transurban share price moved 0.5% higher following the release of the results, according to Google Finance.
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