Airports Company South Africa reports US$150 million profit in 2016

JOHANNESBURG: Airports Company South Africa, which owns nine airports in the continent, posted revenue growth of 3.4 percent year-on-year through March 31, 2017, resulting to 10 percent increase on its profits valued at R2 billion (about US$150 million).

ACSA said its revenues in the year ending on March 31, 2017 grew 3.4 percent to R8. 6billion (about US$644.234 million) compared to R8.3 billion in 2016.

Return on equity was 11.3% compared to 11.5% in the previous period. Capital expenditure reduced by 31.3% to R893 million.

Bongani Maseko, Chief Executive Officer of Airports Company South Africa, said the company continued to be resilient meeting about 76 percent of its key indicators, despite the sluggish economic growth in Africa.

“The overall financial position of the Company therefore remains healthy despite regulatory uncertainty and difficult economic conditions .Operationally, we are adapting well to a new tariff regime from the regulator which required a 35.5% reduction for the 2018 financial year with increases in the following two years of 5.8% and 7.4%,” said Maseko.

The Company reported a total of 20.0 million (2016: 19.4 million) departing passengers from the nine airports it owns and operates.

While domestic passenger growth was subdued at 2.2%, the Company reported strong growth of 6.1% in international departing passengers.

For the first time, Cape Town International Airport reported a total of more than 10 million arriving and departing passengers, with King Shaka International Airport reporting a total of more than five million passengers for the first time.

Aircraft landing volumes were flat for domestic flights and up by 2.5% for international flights, indicating higher passenger utilisation of scheduled flights.

Maseko noted that Airports Company South Africa has managed to significantly reduce its debt levels over the past five years.

Debt, primarily in the form of bond issues, stood at R9 billion at the end of the period, significantly down from R17 billion in 2012. As a result, the Company’s gearing ratio has reduced from 59% in 2012 to 25% in the 2017 financial year.

Aeronautical revenue contributed 63% to total revenue but the Company remains committed to continue to grow the non-aeronautical revenue contribution . Non – aeronautical revenue is derived from sources such as retail space, advertising, office rental, parking and car hire.