As business travel increases in and out of Australia, so do profits and revenue for a variety of businesses. The latest benefactor of the increase in travel, MAp Group, 74 percent owner of the Sydney Airport, reported an annual net profit $100.8 million.
MAp CEO Kerrie Mather, said, “This has been a landmark year for MAp. It is the first full year we have operated as a standalone entity and we have delivered 19.3 percent proportionate earnings growth. Against a backdrop which has included the impact of the volcanic ash cloud in Europe and significant appreciation of the Australian dollar, this is an outstanding result reflecting a very strong traffic performance, commercial revenue initiatives and continued cost discipline.”
Following a $573 million loss in 2009, MAp Group broke away from Macquarie Group. That combined with reports of record levels of traffic at Sydney and Copenhagen airports, which MAp also owns, 2010 brought the airport operator back into the black.
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Mather said, “Full year EBITDA growth of 12.0% at Sydney Airport was the result of strong traffic growth, supported by a successful investment programme and economies of scale. Sydney delivered traffic growth of 7.8%. The rapid recovery in traffic to long-term trend levels has been very pleasing and reflects the airport’s strong position as the gateway to Australia.”
The announcement follows the completion of a $1.9 billion refinancing of all 2011 and 2012 debt maturities for Sydney airport. Map also reports that it has $755 million in cash on its balance sheet. There are also no debt maturities across the business until December 2012.
“MAp’s airports are each entering 2011 in a very strong position. Sustainable platforms for growth in aeronautical and commercial businesses are supported by increasing traffic across all airports. At the same time we have a robust balance sheet and no debt maturities until December 2012,” Kerri Mather added.