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Sydney Airport 1st Half Revenue Rises, But Passenger Traffic Declines

   By Mike Cherney 
 

SYDNEY--Sydney Airport (SYD.AU) said revenue in the six months through June rose more than 3% but overall passenger traffic declined slightly, driven by weakness in the domestic market.

Sydney Airport said first-half revenue was 797.1 million Australian dollars (US$538 million). Total passengers came to 21.6 million, down 0.2%.

Earnings before interest, tax and other items, or Ebitda, rose 4% to A$649.2 million, though that figure excludes one-off charges such as redundancy and indemnity expenses. Including those charges, Ebitda was A$465.1 million, down 25%. Net profit attributable to members rose by 15% to A$199.8 million.

Sydney Airport said its first-half distribution would be 19.5 Australian cents per share. It reaffirmed guidance for its full-year distribution to be 39 Australian cents per share, which would be a 4% increase.

The half-year result was "underpinned by international passenger growth of 1.9% and a solid contribution from our non-aero businesses," Chief Executive Geoff Culbert said. "Duty free and speciality store performance was strong with a lift in advertising revenues reflecting our investment in new digital advertising."

Sydney Airport said half-year aeronautical revenue rose nearly 5%, retail revenue rose 4%, property and car rental revenue rose 1.8% and car parking and ground transport revenue fell 1.4%, which reflected the domestic-market weakness.

The airport attributed the domestic decline to capacity reductions and subdued demand. Domestic passenger traffic fell 1.5%.

 

-Write to Mike Cherney at mike.cherney@wsj.com

 

(END) Dow Jones Newswires

August 14, 2019 19:27 ET (23:27 GMT)

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