Airports Company South Africa – Driving new frontiers for sustainable growth
· Revenue increased by 6.8% to R8.3 billion (2015: R7.8 billion)
· New routes, passenger volumes, non-aeronautical revenue boost performance
· Profit for the year increased by 20.3% to R1.96 billion (2015: R1.6 billion)
· Interest-bearing borrowings reduced by 13.1% to R9.8 billion (2015: R11.3 billion)
· 96% of key performance indicators met
Johannesburg, 23 September 2016 – Airports Company South Africa reported revenue growth of 6.8% to R8.3 billion in the year ended 31 March 2016, driven by the introduction of new routes, growth in passenger numbers and strong performance in non-aeronautical revenue.
Bongani Maseko, Chief Executive Officer of Airports Company South Africa, said the new routes included flights by Kenya Airways to Cape Town International Airport, Ethiopian Airlines to King Shaka International Airport and increased frequency of flights by Emirates Airlines and British Airways, among others. Passenger growth to and from Europe and Asia contributed further to overall performance.
The Company reported a combined total of 19,4 million departing passengers from the nine airports it owns and operates. The 2016 financial year saw a year-on-year annual growth rate in departing passengers and aircraft landings of 8.6% and 4.0% respectively, leading to R5.2 billion (2015: R4.9 billion) in aeronautical revenue.
Maseko said that stronger partnerships and greater cooperation with airlines had enabled the Company to facilitate the new routes and increased flight frequencies by international airlines.
The Company continued with its deleveraging strategy and R1.5 billion in debt was repaid during the financial year, which brings the total repaid over the past five years to R7 billion.
Airports Company South Africa met 96% of its performance objectives. "The executive team and employees across Airports Company have demonstrated a desire to listen to and respond to the needs of our stakeholders, and this developing outward focus of our culture bodes extremely well for the future," said Maseko.
According to Maseko the ability to develop and maintain strong partnerships with all of its stakeholders are core elements of the Company's new business operating model and central to enhancing its status as a well-run state owned Company.
Maseko concluded, "Our future outlook will entail a clear and consistent focus on the strategy that we have outlined towards achieving Vision 2025. This process will include the incorporation of the governance framework and operating model and will rely on the continued support of our people and stakeholders as we transition to our new strategy to guide us to 2025 and beyond."