AUSTRALIA. Sydney Airport today announced a +10.3% rise in EBIDTA year-on-year to A$1,106.7 million (US$854.2 million), underpinned by standout performances from retail and aeronautical services. Revenue increased by +11.03% to A$ 1,364.6 million (US$1053.2 million).
Retail income rose +12.2% year-on-year to A$295.6 million (US$228.1 million), comfortably outstripping international passenger growth of +8.9% and a +5.6% total traffic increase. Retail income represented 22% of the airport company’s annual revenue.
Parking and ground services revenue rose +3.6% to A$ 156.1 million (US$120.5 million) while that from property and car rental edged ahead by +1.5% to A$204.2 million (US$157.6 million)
Buoyed by the strong passenger numbers, aeronautical services revenue increased +15.6% to A$701.5 million (US$541.4 million).
Notably (and importantly for the travel retail business), five of the six fastest-growing passenger nationalities were from Asia (see table).
Sydney Airport singled out the duty free business, run by Heinemann Duty Free, for praise. The business, which commenced in February 2015, offers “contractual certainty to August 2022” and is “performing well, in line with forecasts”, the company said.
Heinemann is offering a wider variety of contemporary products (28,000 products across 800 brands), including several “first to Australia” brands, Sydney Airport noted. Sales to Chinese passengers surged by +26% year-on-year (above Chinese passenger growth of +17.6%), while those to other Asian nationalities rocketed by +70%, underpinned by very strong gains in Japanese, Korean, Indonesian and Indian passenger numbers.
Sydney Airport commented: “The new duty free offering is now complete with enhanced brand and product categories delivering strong growth. The majority of [wider] retail development is now complete with new outlets providing consistent returns for the retail business – ten of 13 outlets are now open in the new T1 fashion precinct, with the remainder scheduled to open progressively in 1H17.”
Future growth opportunities, particularly in F&B, await, the company added. When completed, the new T1 Marketplace precinct will offer seven new food & beverage outlets. Five of six new contemporary eateries in Pier C have opened, including first to airport and Australia offerings, with a further opening this quarter. Further leasing opportunities are available at the T2 and T3 Domestic terminals.
Sydney Airport Managing Director and CEO Kerrie Mather said: “Passengers are enjoying an improved customer experience at T1 International, with better terminal wayfinding for passengers, additional seating closer to departure gates, increased natural light and enhanced retail offerings.
“In addition, our results included our first full year of Terminal 3, with the financial and operational performance exceeding our business plan.”
In car parking*, online bookings grew +21% with increased demand for international long stay products. Notably, online bookings now make up 38% of parking revenue.
*Footnote: The Moodie Davitt Report in joint venture with The Mercurius Group recently launched The Airport Car Parking Study 2016, the definitive guide to airport car parking and management. For details contact Ivo Favotto at ifavotto@themercuriusgroup.com
