Christchurch International Airport Limited (CIAL) has recorded
another record year in FY19. Excluding the impact of fair value
gains on investment properties, underlying profit before tax for the year was $66.9 million
against $57.2 million for FY18 (+17%). This continues what has been
a strong run, with underlying profit before tax having grown from
$14.3 million five years ago in FY14 to $66.9 million in FY19.
The CIAL Board has declared a full year total dividend of $43.3
million for FY19, against $40.4 million in FY18 (+7.3%) and $7.6
million in FY14. This is the fourth year in a row the airport
company has produced both a record underlying profit and a record
dividend for shareholders.
During FY19, the airport handled 6.93 million passengers, up
65,000 on FY18. Passengers travelled on 73,000 flights, up 2% on
FY18. Total operating revenue for the year grew to $187.4 million
($177.6 million in FY18, up 5.5%), operating costs were held at the
level of the previous year and this allowed EBITDAf to grow to $125.5 million ($115.7 million in FY18,
Net profit after tax for the year (including fair value gains on
investment properties) was $57.5 million, compared to $88.7 million
in FY18. This was due to the reduction in the amount of fair value
gains on investment properties to $13.1 million in FY19, as
compared to $53.7 million in the prior year - noting fair value
property adjustments are influenced by completion of new
developments and the timing of revaluation reviews.
In key international markets over the past two years,
Christchurch Airport (CHC) grew faster than New Zealand has
overall, with international visitor arrivals from China up 34.1%
(NZ grew 5.8%), Hong Kong up 44.7% (NZ grew 13.5%) and Australia up
7.3% (NZ grew 4.4%).
"The international growth reflects the past five years of
positive and committed strategy activation in key markets under
'South', the airport's international marketing programme. 'South'
has focused on chasing very well defined market segments in these
markets which are of higher value to the airline and to the country
than pure volume based strategies", says Chief Executive Malcolm
The company invested a further $63 million in investment
property, which will increase future revenue, dividends and
shareholder value. This compares to $68 million invested in
The company expects Fletchers to complete the overdue Novotel
Christchurch Airport in time to open its doors around the end of
2019. "Whilst we're disappointed it's overdue, the hotel is looking
outstanding and the restaurant, bar and functions rooms on the
6th (top) floor have the most amazing views of
Canterbury and Christchurch", says Johns.
He says the highlight of the past financial year has been the
way the whole team has worked incredibly hard to hold operating
costs at last year's levels. "That takes a constant focus on
productivity and a positive working relationship with key suppliers
to ensure we are optimising what we are doing together to make the
airport run every day.
"The airport campus now has around 7,000 people working on site
in more than 260 companies and handles an average of around 140,000
members of the public who make a visit every week.
"That's more than the population of Dunedin on our campus every
week of the year", he says.
Malcolm Johns says the year ahead is looking more challenging,
with the domestic market and some key international markets looking
softer than they were a year ago.
 Underlying profit before
tax is defined as profit before tax less fair value gains on
 EBITDAf is defined as net
profit after tax plus interest expense, plus tax expense, plus
depreciation and amortisation, less fair value gain on investment
properties, less gain on disposal of assets.