Sydney airport records fall in H1 net profit on tax charges

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Sydney airport has recorded a fall in net profit for the first half of 2013 from Australian dollars (A$) 88.6 million ($79.5 million) to A$24 million, largely because of a one-off income tax charge of A$39.7 million.

The airport operator recorded a 6.8% rise in revenue over the six-month period to A$538 million, which it attributed to a 3% increase in passengers passing through the airport. It adds that aeronautical revenue rose by 6.9% as inbound travellers increased by 4.4%.

Operating expenses increased by 7.5% to A$62.6 million, while security costs rose by 12% to A$36.7 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 6% to A$437 million.

Capital expenditure over the six months came in at A$104 million as it invested in the upgrading of aircraft gates and aprons to accommodate larger aircraft, such as Airbus A380s. The operator adds that it forecasts capital expenditure over 2013-15 to come in at approximately A$230 million per annum.

Chief executive Kerrie Mather says that the airport is continuing to work with travel partners to drive up passenger numbers across the second half, which - along with cost cuts - should allow it to grow EBITDA in the second half of the year.

"New business initiatives across all revenue lines are already delivering positive outcomes including yield improvements," she adds.