Strong retail performance lifts APAC profits

Nicole Mezzasalma

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Melbourne airport operator sees 10% increase in overall revenue

Australia Pacific Airports Corporation (APAC) has announced an increase of 1% in post-tax profits to A$158m ($130m) on the back of a strong retail performance. Retail revenues were up by 13% on last year and earnings increased from A$138m ($113.7m) in 2006 to A$156m ($128.5m) in 2007 due to the firm’s commitment to “deliver a good product at the right price”, according to an APAC statement.

The company, which operates Melbourne International airport in Australia, said that its operating profit rose by 10% to A$270m ($222.3m) and overall revenue grew 10% to A$384m ($316.2m). The statement also said that APAC invested over A$100m ($82.4m) into capital works at Melbourne airport during the 2006/07 financial year.

APAC’s property and rental revenue performed strongly during the last year, growing by 12%. A major coup for the company during the period was new Australian domestic carrier Tiger Airways’ decision to establish its base at Melbourne.

APAC chairman Don Mercer said: “A successful airport business that generates strong returns for its shareholders is ultimately a great community asset, because it gives shareholders the confidence to invest in capital works, which ultimately benefit the community it serves. APAC fits into this category. It is a successful business with confident shareholders predisposed to investments in expansions, upgrades and joint ventures.”