Sydney Airport Holdings Pty Ltd (ASX: SYD) released its 2018 half year to the market today revealing a 7.9% increase in revenue.
Sydney Airport Holdings is the company that operates the Kingsford Smith Airport.
Here are some of the highlights from its report:
- Passengers grew by 3.3% to 21.6 million
- Revenue went up 7.9% to $770.8 million
- EBITDA increased by 8% to $623.4 million (click here to learn what EBITDA means)
- Net operating receipts increased by 7.6% to $411.3 million
The distribution guidance for 2018 is for 37.5 cents per security, which represents 8.7% growth compared to the 2017 distribution.
Sydney Airport CEO Geoff Culbert said: “Sydney Airport today announced a strong result for the half year to June 2018, underpinned by continued passenger growth, a solid performance across our non-aeronautical businesses, efficient capital investment and prudent cost control.”
The number of international passengers grew by 5.2% to 8.1 million, with Chinese passengers growing by 5%, Indian passengers growing by 17% and Taiwanese passengers increasing by 49%.
Sydney Airport said that it invested $179.6 million for increased aviation capacity, service and customer facility improvements, improved airport access and an improved customer experience. It said that its balance sheet and financial flexibility is in the best shape since privatisation in 2002.
Outlook
Sydney Airport continues to focus on its international marketing strategy on emerging and mature regions, capitalising on the growing strength and popularity of global travel.
The Sydney Airport share price has nearly doubled over the past five years due to low interest rates and growing passengers.
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