Sydney Airport eyes another dividend lift as tourism boom helps buoy books

Sydney Airport has posted a lift in full-year profit as it flags hiking next year’s dividend amid ongoing tourism boom.

New Sydney Airport chief executive Geoff Culbert. (Renee Nowytarger/The Ausrtralian)

Sydney Airport said 2017 revenue and net profit rose some 9 per cent as passenger traffic continued to grow, and it expects to increase its full-year distribution in 2018 amid a tourism boom in Australia.

Sydney Airport (SYD) said its net profit was $349.8 million in 2017, compared to $320.9m in 2016. Revenue rose to $1.48 billion, from $1.36bn.

The company said the full-year 2017 distribution is 34.5 cents per stapled security, an increase from 31c in 2016. Looking ahead, the company said it expected to offer a full-year distribution of 37.5c per stapled security for 2018.

Sydney Airport said 2017 total passenger traffic was a record 43.3 million, up 3.6 per cent. International passenger growth was even higher at 7.2 per cent.

“This result reflects management initiatives, investment, positive macro tailwinds from increasing global tourism and travel, our proximity to Asia, larger and more fuel-efficient aircraft and the continued liberalisation of air rights,” chief executive Geoff Culbert said.

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