Strong retail revenues lift Sydney airport half-year results

Nicole Mezzasalma

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The airport has earned one-off income of A$5m ($4.9m) after renegotiating its duty-free contract with The Nuance Group

Airport operator Sydney Airport Corporation Limited (SACL) has announced its half-year results, highlighting a 9.5% growth in earnings in the six months to June 30 2008. EBITDA was up by 9.2% to A$318.6m ($309.8m) in the period. Revenue for the second quarter of 2008 includes one-off income of about A$5m ($4.9m) from the renegotiation of The Nuance Group’s duty-free contract at Sydney International airport. Total revenue rose by 8.4% to A$397.2m ($386.3m) in the first six months of the year, ahead of traffic growth of 5.6%.

The company said in a statement that “underlying retail revenue grew broadly in line with passenger traffic as a result of the duty-free contract operating at minimum rent levels”. Retail revenue rose by 11.3% to A$95.3m ($92.7m) in the period and was described as “strong” despite several landside and airside shops remaining closed for refurbishment as part of terminal one’s redevelopment project, due to be completed in 2010.

SACL CEO Russell Balding said: “It is particularly pleasing to see revenue increase across all areas of the business. Passenger growth of 5.6% in the first half highlights the resilience of traffic at Sydney airport. To accommodate further expected growth, Sydney airport has invested significantly in the first half of the year, with big projects including the international multi-storey car park and the international terminal [T1] redevelopment project.”