Airport's record payment to shareholders
What a difference a year makes.
Queenstown Airport will pay a record interim dividend to its shareholders after its revenue was boosted by the steady recovery of passenger numbers.
With the travel restrictions linked to the COVID-19 pandemic lifted, there were 1,224,179 passenger movements (arrivals and departures) through the airport over the six months to 31 December 2022.
Revenue hit $30 million and the net profit, after tax, was $11.5m.
Queenstown Airport Corporation board Chair Adrienne Young-Cooper says Australian and domestic visitors had steadily returned to Queenstown during those six months.
"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," Young-Cooper says.
"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."
Queenstown Airport Corporation board Chair Adrienne Young-Cooper
Given the strong performance, and after an extended period with very limited dividend payments, the board has announced an interim dividend payment to shareholders of $5.98 million.
The airport is owned by Queenstown Lakes District Council, the majority shareholder, and Auckland International Airport. QLDC will receive $4.49 million, which equates to about $150 per ratepayer.
It's also 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.
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.
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," Young-Cooper says.
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," airport Chief Executive Glen Sowry says.
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," Sowry says.
"This means we must invest in our airport to ensure it is fit for purpose and continues to meet these needs in the future."
QAC Chief Executive Glen Sowry
Enabling the decarbonisation of aviation is central to the airport’s strategy and long-term planning and will be critical to achieving the Queenstown Lakes District’s bold ambition to be the world’s first carbon-zero tourism destination, which QAC supported, Sowry says.
A full sustainability report, including climate-related financial and legal risks, will be included with QAC’s FY23 annual results.
The details:
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.
