FIIG - The Fixed Income Experts

News and Education

Sydney Airport reports strong half year result

by Gavin Madson | Aug 26, 2013

Sydney Airport reported a 3.6% increase in international passengers (and total passenger growth of 3.0%) which drove an improvement in revenues and EBITDA. The airport delivered a record level of first half passengers (18.2m) with particular growth coming from Asian markets, with the first full year of Scoot and AirAsiaX airlines helping to drive numbers. Continued strength in Asian passenger numbers are expected to be underpinned by the growing middle class in the region, particularly China.

As with previous periods, Sydney Airport was able to grow revenue’s beyond the rate of increase in passengers, recording an 8.1% increase on HY12 numbers with car parking and property rental growing at 11.5% and 10.5% respectively.

With a debt service coverage ratio of 2.2x, average maturity of 7.6 years and next maturity not until Q4 2014 we remain very comfortable with Sydney Airport’s bond issues.