Tax bill cuts Sydney Airport half-year profit to $17.3m

A European tax ruling has cut Sydney Airport’s half-year profit to just $17.3 million.

Aircraft landing at Sydney Airport. Picture: Brendon Thorne

Sydney Airport has posted a drastically reduced half-year profit of $17.3 million, down from $173 million in the previous corresponding period.

The dramatic fall was the result of a $181.7m tax bill issued by the European Union Court of Justice, in relation to the 2011 sale of Sydney Airport’s stake in Copenhagen Airport.

The one-off expense had no bearing on dividend which will be paid immediately at 19.5 cents a share.

Sydney chief executive officer Geoff Culbert described the half-year result as “solid” and reflective of continuing international passenger growth, robust retail performance and a deliberate and disciplined approach to cost control.

Although international passengers grew 1.9 per cent in the six months to 8.3m, domestic passengers were down 1.5 per cent which reduced total passenger numbers by 0.2 per cent to 26.1m.

The downturn in domestic travellers, blamed on capacity reductions and subdued demand, took its toll on carparking and ground transport revenue, which fell 1.4 per cent to $77.6m.

On a more positive note for the airport, aeronautical revenue, collected from airlines, was up 4.7 per cent to $361.3m due to international passenger growth, and retail revenue improved 4 per cent to $184.2m.

Mr Culbert said duty free and specialty store performance was strong with a lift in advertising revenues reflecting the airport’s investment in new digital advertising.

“Sydney Airport is a business that continues to perform well across the cycle and this half was no exception,” he said.

“We see ongoing opportunities for growth in our aeronautical and non-aeronautical businesses and our investment program will continue to deliver capacity and great experiences for our customers.”