Retail revenues up 6% at Sydney

Gavin Lipsith

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Duty-free remains the main provider of the airport's retail revenues, which reached A$73.8m for the second half of 2005

Sydney Airport owner Southern Cross Airports Corp has announced increased retail revenues for the second half of 2005, up 6% compared with the previous corresponding period. The result comes despite a slow fourth quarter, in which retail revenues grew by only 3.7% to just under A$40m ($29.9m). Retail revenues for the half reached A$73.8m ($55.1m), with duty-free remaining the mainstay of the business according to the airport.

Total revenue for the second half of 2005 rose 7.4% to A$329.3m ($245.8m), reflecting improved yields from commercial activities and an increase in passenger traffic driven by the introduction of new airline services. Pacific Blue launched two services a week to Tonga and Polynesian Blue started three weekly services to Apia in Samoa. Jetstar launched its first international services to Christchurch and OzJet entered the domestic market with 47 services each week to Melbourne.

Further retail developments are being planned. Sydney Airport Corp executive chairman and CEO Max Moore-Wilton said: "We recently announced Project STAR—a A$500m ($373.1m), five-year program to upgrade facilities at terminal one and on the airfield to provide state of the art facilities including...new retail and food and beverage facilities focusing on the needs of our customers identified in customer feedback and market research."

The company is also working on a A$20m ($14.9m) upgrade of T2, which will feature an improved and expanded retail offer spread over 5,000sq m (53,800sq ft) of retail space.

EBITDA for the six months to December 31 2005 grew by 6.4%, excluding specific non-recurring expenses, to A$261.4m ($195.1m). Including specific non-recurring expenses, EBITDA increased by 7.1% to A$261.1m ($194.9m).