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ACSA shows all round improved performance for the financial year ended 31 March 2007
Thursday, August 23, 2007 | 00:00


Achieved AA Fitch Rating
Registration of R12 billion bond programme
Finalisation of Permission Application (2008-2012) totalling R19,3 billion

Airports Company South Africa (ACSA) continued on a path of good financial performance, accomplishing all-round improved revenue, net profit and headline earnings per share for the year ended 31 March 2007.
During the year under review, revenue increased by 18 percent to R2, 564 billion. This includes non-aeronautical revenue of R1, 189 billion (2006: R984 million), which now accounts for 46,37% (2006: 45.27%) of ACSA’s total revenue. Group profit before taxation increased by 23% to R1 143 million (2006: R930 million) and the net Group profit was R663,6 million (2006: R621 million) after providing R479 million (2006: R309 million) for tax.
Another critical measure, Earnings Before Interest, Tax, Depreciation and Amortisation (EBIDTA) increased by 20,6 percent (2006: 20 percent) to R1 641 million. Over the past six years, the Group EBITDA margin improved from 55 percent to a peak of 64 percent during 2007.
“By all accounts, these are pleasing results. I am grateful to my executive team and each and every individual staff member of ACSA. These results would not have been accomplished without their contribution,” said Ms. Monhla Hlahla, Managing Director of ACSA.
The main driver of this remarkable growth in passengers at ACSA airports has been exceptionally strong performance in the domestic market, on the back of a positive economic climate with a Gross Domestic Product of 5 percent. Domestic and international passenger volumes rose at an average annual rate of 11,28 percent and 7 percent respectively over the past five years. Hlahla said the entry of low cost carriers into a market where a growing proportion of the population could now afford air travel buoyed passenger volumes. In addition, the entry of new foreign carriers including Delta, Thai Airways and Virgin boosted international passenger arrivals.
ACSA’s Executive Director: Finance Mr. Brooks Mparutsa said the contribution of non-aeronautical revenues to total group revenue continued to be significant at 43 percent. “Non-aeronautical revenues generated by the commercial department contributed 80 percent of the Group’s operating profit,” he said. “This further highlights the importance of ACSA’s commercial activities in a regulatory environment where the airports are regulated in a single till price cap system. Overall, non aeronautical revenues increased by 19 percent (2006: 11,2 percent) to R1,4 billion. Retail revenues, which include duty free, core retail, advertising and car hire, contributed 68 percent of the Group’s non-aeronautical revenue with the balance being generated by property related revenue.”
Chairman of ACSA’s board Dr. Franklin Sonn lauded the performance of the ACSA team. “It is a great pleasure for me to congratulate the Managing Director, Monhla Hlahla her management team and the employees of ACSA for yet another excellent performance.”
He said: “Since inception and over the past five years in particular, ACSA has set challenging performance targets for itself. Over the past five years it has paid the fiscus R1,7 billion in dividends and R1,3 billion in taxes. Equally, it has benefited the SADC region and Africa generally by investing some R4,8 billion in creating aviation infrastructure and facilities, vital necessities for the tourism and transport sectors.”
ACSA currently has in excess of R5 billion in capital commitments that have already been contracted and where the construction of the infrastructure is well underway. With the approval and award to the preferred bidder of the new airport at La Mercy in June 2007, the capital committed increases to more than R11 billion.  In the Permission Application submitted to the Regulating Committee on 30 September 2006, ACSA forecast a capital investment programme of R19.3 billion for the financial years 2008 to 2012.
We are proud that we have achieved most of these successfully, with the Economic Regulator having promulgated tariffs as per the industry application; a positive AA Fitch Rating for senior unsecured debt and an F1+ (zar) rating for short-term debt; a successful launch of a R12 billion programme for the domestic market with an oversubscribed R2 billion debut bond.
Ms. Hlahla says she is looking forward to the new Board continuing to play a crucial role in guiding the company towards accomplishing its business objectives. Furthermore, she thanked the past Board members for their contribution in making ACSA the success that it is.
Hlahla concluded: “Once again, ACSA has delivered exceptionally strong operational and financial results on the back of a good growth in the aviation sector, which is nurtured by a buoyant national economy where levels of consumer spending continue the strong upward trend evident over the past 14 years.”
For  enquiries, contact:
Solomon Makgale
Manager: Communications- 082 781 8863
Corporate Office
Airports Company South Africa

Direct: +27 (0) 11 723 1451
Fax to E-Mail: +27 (0) 86 602 0132
Cell: +27 (0) 82 781 8863
E-Mail: Solomon.Makgale@airports.co.za
Web: www.acsa.co.za 

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