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General Information

Auckland International Airport Limited
Airport Services

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$4.64 $4.57 $4.66 $4.57 $4.55 24948 $0.09 ( 1.98% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation


Company Overview

Business Description
Auckland International Airport Limited (AIA) is a New Zealand-based company providing airport facilities and supporting infrastructure in Auckland, New Zealand. AIA’s core operations are aeronautical activities, on airport retail concessions and car parking facilities, standalone investment properties and other charges and rents associated with operating an airport. AIA also holds investments in companies operating in airport and related businesses located in New Zealand and Australia.
Strategy Analysis
The strategic growth priority for airport is to grow its aeronautical and retail income through meaningful passenger growth over the longer term. Management is actively engaging with aircrafts and is looking at ways and means to increase passenger capacity out of Auckland in a significant manner. It has been quite successful of late in enticing major Trans-Tasman and some long haul carriers to Auckland. We estimate capacity out of Auckland will rise by approximately 1.3m as a result. This is likely to spur international passenger growth over the next 2-3 years. Queenstown and NQA have delivered good results and are ahead of managements target in terms of passenger numbers. The goal is to extract meaningful returns out of those acquisitions through route development and other strategic initiatives. We don´t see the company making any further acquisitions for the foreseeable future. In the medium term management is intent on giving a thrust to its property business and has planned major property related capital expenditure over the next few years to capitalize on its massive land bank. Management sees immense opportunities to lift revenues in this business and has set itself a target of doubling revenues by FY14. On the aeronautical front, the company is thinking about investing in the domestic terminal to increase capacity and alleviate traffic congestion. It proposes to invest $100-150m in phase 1 to build a new integrated domestic terminal and taxiway alongside the international terminal. This will take 3 years to build. In the interim the firm is considering making minor investments of $15-20m to tide over near term capacity issues. AIA intends to recover this cost by passing it on to passengers. Phase 2 of the plan will be implemented after 3 years and involves the second part of a new integrated terminal alongside the international terminal, a northern runway and taxiway system. The firm then proposes to close the existing domestic terminal. While the cost for the second phase wasn´t revealed we think it could be in the order of $100-150m as well. Auckland Airport reported NPAT up 11.3% to NZ$76.91m for the half-year ended 31 December 2012. Revenue from ordinary activities were NZ$223.55m, up 3.6% from last year. Basic and Diluted EPS were 5.82 cents compared to 5.22 cents last year. Net operating cash flow was NZ$93.22m compared to $94.23m last year. The interim dividend declared was 5.75 cents, compared with 4.4 cents last year.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 180.0 15.1 8.3% 30.7 15.1 3.3% 0.0%
2015 F 166.2 14.0 30.2% 33.2 14.0 3.0% 0.0%
2014 A 141.7 10.7 15.3% 29.8 10.9 3.4% 0.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Auckland Airport (AIA) $5,417M 0.2577 0.1861 0.0788 37.2951 31.4444 29.1480 1.43% 3.16% 3.43%
Sydney Airport (SYD) $11,879M -0.1382 1.9552 0.1136 200.0000 67.6768 60.7710 4.38% 4.66% 4.94%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 1.51 32.10 2.04 2.44
Market 0.91 16.10 1.33 1.27
Sector 1.10 17.70 1.63 1.46


Name Position Start Date
Mr James Bruce Miller Non-Executive Director 04/09/2009
Mr Richard John Didsbury Non-Executive Director 20/11/2007
Mr Brett Alan Godfrey Non-Executive Director 28/10/2010
Mr John Alston Brabazon Non-Executive Director 20/11/2007
Ms Justine Smyth Non-Executive Director 02/07/2012
Ms Michelle Lee Guthrie Non-Executive Director 24/10/2013
Ms Christine Spring Non-Executive Director 23/10/2014
Sir Henry William van der Heyden Non-Executive Director, Non-Executive Chairman 04/09/2009


Name Position
Adrian Littlewood Chief Executive
Adrian Littlewood Chief Executive Officer
Simon Robertson Chief Financial Officer
Charles Spillane Company Secretary
Judy Nicholl General Manager-Aeronautical Operations
Graham Matthews General Manager-Airport Development and Delivery
Charles Spillane General Manager-Corporate Affairs Aeronautical Commercial (Acting) General Counsel
Jason Delamore General Manager-Marketing and Communications
Mark Thomson General Manager-Property
Richard Barker General Manager-Retail and Commercial

Substantial Shareholders

Holding Name
295,921,014 (24.85%) Auckland Council Investments Limited

Calendar of Events

Date Event
19 February 2016 Report (Interim)
25 August 2015 Report (Annual)
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