Retail sales propel Sydney airport to strong full-year results

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The redevelopment of travel-retail facilities drives sales as Sydney recovers from the effects of the Iraq war and SARS.

A 20% increase in fourth-quarter retail sales has helped Sydney airport achieve EBITDA (earnings before interest, tax, depreciation and amortisation) of A$423.5m ($302.5m) for the year to June 30 2004, an increase of 13.4% over fiscal 2003.

The airport's operating company, Southern Cross Airports Corporation Holdings (SCAH), said retail sales reached A$32 million ($22.9m) in the fourth quarter, a 20% increase over the same period last year. Full-year retail sales came to A$131.8m ($94.1m), an improvement of 7.8% on 2003.

SCAH said buoyant retail revenues in 2004 were largely thanks to the substantial redevelopment of the duty-free walkthrough stores in Pier B departures and arrivals during the year, as well as the relaunch of the T1 international food court and an expansion of retail trading in T2.

"This is a particularly pleasing result given that traffic is still building following the Iraq war and SARS," said Kerrie Mather, CEO of SCAH's main shareholder Macquarie Airports. "The benefits of the many commercial initiatives put in place over the last couple of years are beginning to bear fruit."