Airport Development Group (NT Airports)

AIX interest in NT Airports:

28.2%

NT Airports owns and operates Darwin International Airport, Alice Springs Airport and Tennant Creek Airport. Darwin International Airport forms an important hub for low cost carriers, creating a vital link between Australia and Asia, as well as being the key entry point into the Northern Territory. Alice Springs Airport also provides a key gateway to Central Australia for both domestic and international travellers.

Performance highlights 2009

NT Airports generated total revenue of $63.5 million and EBITDA of $40.9 million in the year to 30 June 2009, representing increases of 11.0 percent and 13.0 percent respectively on the prior financial year.

The strong improvement in earnings is largely attributable to the continued growth in passenger numbers, with a total (including transits) of 2.7 million passengers serviced by NT Airports over the year, representing 9.5 percent growth on the prior financial year. The growth in passenger numbers was particularly strong in the domestic terminal of Darwin Airport, with passenger numbers (including transits) increasing 10.4 percent on the prior year. A strong tourism season and the stable Northern Territory economy were the key drivers of passenger growth.

Non-aeronautical sources of revenue also performed well over the year, with property income increasing 13.0 percent. Trading revenue from duty free, car rental and car parking sources also increased on the prior financial year. This is attributable to the continued growth in passenger numbers, as well as the high quality services provided by the airport and its retail partners.

During the year, NT Airports continued planning for the development of a new passenger terminal at Darwin International Airport, receiving the support of both the Commonwealth and the Northern Territory governments. However, the development was put on hold after Darwin International Airport and its airline customers were unable to reach a commercial agreement necessary to underpin the $60 million development.

In January 2009, NT Airports successfully refinanced its debt facilities for a further three years.

Performance outlook

Over the coming year, NT Airports will continue to improve the performance of its aeronautical assets through its focus on low cost carriers, with Jetstar reaffirming Darwin International Airport as its hub for its South-East Asian services. NT Airports also expects continued strong performance from its retail services, which are underpinned by passenger numbers, while further diversifying its revenue base through the commercial development of property that is not required for aeronautical purposes.