Airports company reports its most profitable year ever
Terminal buildings at OR Tambo International Airport, from the runway side. (The aircraft is an Embraer ERJ-145 of SA Airlink)
Photo by Duane Daws/Creamer Media
Airports Company South Africa (Acsa) achieved a profit of R2-billion for the 2016/17 financial year, it was announced on Monday, up from R1.9-billion for the financial year 2015/16. “This is probably the best set of results we’ve presented in the history of the company,” affirmed CEO Bongani Maseko in the results presentation. “It’s been a stellar performance, with very good financial results,” agreed acting CFO Dirk Kunz. It was the most profitable year the company has ever had.
While domestic departing passenger volumes rose by only 2.1%, and unscheduled flight departing passenger volumes fell by 11.9%, regional departing passenger volumes increased by 4.5% and international ones by 5.8%. In terms of aircraft landing volumes, domestic and regional flights saw no change, unscheduled flight landings decreased by 3.3%, but landings by international aircraft rose by 2.7%.
Kunz credited international flights as being the key to the company’s growth during 2016/17. “Airports like Cape Town and King Shaka [Durban] reported very strong growth,” stated Maseko.
Overall, the company showed itself to be resilient, despite the sluggish national economy, and maintained a strong financial profile, despite the country’s credit ratings downgrade (as a predominantly State-owned company, Acsa’s credit ratings are coupled with those of the country).
Revenues came to R8.6-billion (up from R8.3-billion in 2015/16); earnings before interest, taxes, depreciation and amortisation (Ebitda) were R5.1-billion (down from R5.2-billion in the previous financial year); but the ratio of net debt to Ebitda was 1.19, down from 1.48 in 2015/16. Return on investment was 11.3%, a decline from the 11.5% during the previous year.
The company also received an unqualified audit opinion from the Auditor General and fulfilled 76% of its pre-planned targets. It developed a transformation strategy that embraces seven business sectors, namely advertising, baggage handling, car rental, construction, information technology, property and retail.
“We were able to exceed our target, with regard to preferential procurement,” reported Maseko. The value of preferential procurement came to R2.8-billion during the financial year.
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