Strong revenue delivers solid annual result for Queenstown Airport Corporation
21 Aug 2019
- Revenue up 9% to $49.6 million
- Profit for the year up 11% to $16.6 million
- Annual dividend of $8.2million declared to shareholders Queenstown Lakes District Council (QLDC) and Auckland Airport (AIAL), equating to $6.2 million returned to the Queenstown Lakes District community or $237 per rateable property in the district.
Queenstown Airport Corporation (QAC) delivered a solid result in the financial year ended 30 June 2019 with total revenue up by $3.9 million (9%) to $49.6 million. This was a result of increases in both aeronautical and commercial revenue, and effective cost controls.
Reported Net Profit After Tax was $16.6 million, up $1.6million (11%) compared to the same period last year. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by $2.7 million, or 9%, to $34.3 million.
QAC declared a total dividend of $8.2 million to its two shareholders Queenstown Lakes District Council (75.01%) and Auckland International Airport (24.99%) for the year ended 30 June 2019 in-line with the Company’s dividend policy. For majority shareholder Queenstown Lakes District Council, this is a dividend of $6.2 million, which equates to $237 per rateable property in the district.
The Company’s continued investment in airfield and terminal infrastructure resulted in an increase in the cost of depreciation and funding costs. New capital investment in this period included the full apron overlay, noise mitigation activities and ongoing terminal improvements.
QAC Chairperson Prue Flacks said the Company continued to invest in Queenstown Airport to maintain and expand existing terminal infrastructure, operational resilience and enhance the customer experience, investing more than $16 million this year to help achieve these goals.
“The health, safety and security of residents, visitors and staff at both airports remain a priority and we have continued to make operational enhancements in a number of areas. Continued investment in technology and other innovative solutions to improve the customer experience was also a highlight,” Mrs Flacks said.
A total of 2,321,347 passenger movements (arrivals and departures) were recorded at Queenstown Airport this year, an 8% increase on the same period last year, with international passenger numbers up 10% to 655,950 and domestic passenger numbers up 8% to 1,665,397. While there has been an increase year-on-year in passenger numbers, the demand for scheduled services to and from the region is moderating.
General aviation (fixed wing and helicopter) movements at Queenstown Airport were down 6% on the same period last year, while private jet movements remained constant. At Wanaka Airport, general aviation movements (fixed wing and helicopter) were 50,614, up 12% on last year. Combined, the airports enabled over 90,000 general aviation movements.
In terms of future planning, Mrs Flacks said: “QAC acknowledges that the district spatial planning work being undertaken by QLDC, in conjunction with Government, will provide an overarching framework for our future airport planning. We also welcome QLDC’s proposed independent assessments of the economic and social impact of future airport development on the district and its communities,”
“Our planning will be closely aligned with the district spatial plan as we want to ensure we have a strong mandate to go forward with the future development of Queenstown and Wanaka airports,”
“We are focussed on ensuring that the business operates sustainably from an economic, social and environmental standpoint, while maintaining the highest levels of safety, efficiency and customer service,” Mrs Flacks added.
To view Queenstown Airport Corporation’s 2018-2019 Annual Report and Annual Profile, please visit www.queenstownairport.co.nz/company/planning-and-performance.