AUSTRALIA. Retail revenue at Sydney Airport grew by +8.9% year-on-year to A$177.1 million (US$130.2 million) in the first half of 2018 – easily outstripping passenger growth of +3.3%. International traffic rose +5.2%.
Sydney Airport said retail revenue growth followed the completion of lease renewals on superior terms for its travel essentials contract and several Terminal 3 leases.
Duty free continued to trade well, the airport noted. Over 85% of the 14 new stores in T2 Pier B, which is currently in construction, have already been leased. The first phase of the pier’s opening is expected to take place in December, in time for the busy Christmas period.
Property and car rental revenue rose +10.9%, while car parking and ground transport increased by +2.1%, driven by an improved performance in online bookings.
Total revenue rose +7.9% to A$770.8 million (US$566.6 million), while EBITDA was up +8% to A$623.4 million (US$458.3 million).
“Sydney Airport today announced a strong result for the half year to June 2018, underpinned by continued international passenger growth, a solid performance across our non-aeronautical businesses, efficient capital investment and prudent cost control,” said Sydney Airport Chief Executive Officer Geoff Culbert.
“Over the half, we enhanced Sydney Airport’s connectivity, providing new air services and increased capacity, while investing in new and improved facilities that are delivering efficiency, value and choice for our customers. A key example of our ongoing focus and investment in the customer experience is our world-leading facial recognition trial, which commenced during the half year.
“Total passengers were up by +3.3% to 21.6 million, with international passengers growing +5.2% to 8.1 million. This result reflects our targeted marketing strategy, our partnerships with government and industry, ongoing benefits from the liberalisation of air rights, prudent investment in capacity and favourable global tourism and travel trends.
“EBITDA grew +8.1% with key drivers including international passengers and a strong contribution from retail and property. We see both growth and improvement opportunities across our four businesses and have a significant investment programme underway that will deliver efficient capacity, an improved customer experience and service excellence for our customers.”