A strong start to the financial year
will allow Queenstown Airport to pay a record interim dividend.
Queenstown
Airport Corporation’s interim results* for the six months to 31 December 2022
reflect the steady recovery of passenger numbers after travel restrictions
linked to the COVID-19 pandemic were lifted.
·
Interim dividend to shareholders of $5.98 million
·
Revenue of $30.0 million
·
Net profit after tax (NPAT) of $11.5 million
·
Earnings before Interest, Tax, Depreciation
and Amortisation (EBITDA) of $22.5 million
·
Passenger numbers (arriving and departing) totalled
1,224,179.
The QAC board is pleased to report a strong commercial performance
under dramatically different conditions to the previous year, when nationwide
and regional lockdowns severely curtailed the ability to travel and created an extremely challenging business environment.
QAC board Chair Adrienne Young-Cooper said Australian and domestic
visitors had steadily returned to Queenstown during the reporting period.
“The great snow conditions during winter, combined with the uplift
in passengers taking the opportunity to reconnect with friends and family, made
the Southern Lakes a popular destination,” Mrs Young-Cooper said.
“In addition, the Queenstown Lakes District population has grown
by 10.5% since 2019 and is now close to 50,000. With a larger population base
and more New Zealanders working remotely, the airport remains an important link
for residents of the region.”
Given the strong performance of the company during the reporting
period, and after an extended period with very limited dividend payments, the
board was pleased to be able to announce a substantial interim dividend payment
to shareholders of $5.98 million,
Mrs Young-Cooper said. The board has confirmed the dividend payout ratio
in FY23 will be 70% of NPAT, in line with the company’s dividend policy. The
final dividend will be announced in August 2023.
QAC paid a $1 million interim dividend in the 2020 financial year and none in
FY21 and FY22. A final dividend of $1.3 million was paid for FY22.
As majority shareholder, the Queenstown Lakes District Council
will receive $4.49 million,
which equates to about $150 per ratepayer.
It is anticipated the total dividend for FY23 will be the highest ever
paid. The highest full-year dividend to date was $8.3 million paid in FY19.
Businesses and airlines operating at the Queenstown and Wānaka
airports were also severely affected by the pandemic and QAC implemented a
broad programme of support, including rent relief. In total, 68 tenants received support valued at
$12.38 million,
of which $129,742 was during the reporting period.
“To date, all operators at Queenstown Airport continue to operate,
which was the objective of the rent relief provided,” Mrs Young-Cooper said.
Total operating expenditure was $7.5 million.
“Capital expenditure in this period included investment in the ZQN
terminal refresh project to create a more attractive and accessible interior
space to enhance the customer experience and to better reflect the unique
character of the region we represent, as well as improving seismic
performance,” Chief Executive Glen Sowry said.
The project is continuing and is due to be completed in 2023.
QAC confirmed its 10-year Strategic
Plan during the reporting period and the key project for the rest of
the financial year is the development of a draft Master Plan.
Stakeholders and the community will be consulted on the draft
Master Plan late in the financial year and a final Master Plan will be presented
to shareholders for endorsement early in FY24.
“Queenstown Airport plays a crucial role in enabling the economic
and social wellbeing of our region and will be an essential infrastructure
asset in the event of a natural disaster,’’ Mr Sowry said.
“This means we must invest in our airport to ensure it is fit for
purpose and continues to meet these needs in the future.”
Enabling the decarbonisation of aviation was central to the
airport’s strategy and long-term planning and would be critical to achieving
the Queenstown Lakes District’s bold ambition to be the world’s first
carbon-zero tourism destination, which QAC supported, Mr Sowry said.
A full sustainability report, including climate-related financial
and legal risks, will be included with QAC’s FY23 annual results.
- Queenstown Airport’s
full interim report is available here.