Sydney Airport loss deepens in first half of 2021
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Sydney Airport loss deepens in first half of 2021

20 Aug 2021 (Last Updated August 23rd, 2021 08:27)

Revenues slid 33.2% year-on-year to $243m (A$341.6m), with a decrease in both aeronautical and retail revenues.

Buyout target Sydney Airport has seen its loss widened in H1 2021, hit by travel curbs caused by the pandemic.

The airport operator reported a loss after income tax expenses of $69.4m (A$97.4m) in the first six months of this year, versus $38.3m (A$53.6m) a year ago.

Revenues slid 33.2% year-on-year to $243m (A$341.6m), with a drop in both aeronautical and retail revenues.

EBITDA in the first half of this year was $149.5m (A$210.8m), a decline of 29.8% from the previous year.

With the implementation of cost control measures, operating expenses dropped 7.8% to $52.9m (A$74.2m).

Net operating receipts (NOR) stood at $1.2m (A$1.8m), down 98% from the prior year.

Passenger traffic at Sydney Airport dropped 36.4%, with the airport seeing only 6 million passengers in H1 2021.

International passenger traffic reduced by 91% while domestic passenger traffic dropped by 3.1%.

Total passenger traffic in July 2021 was 102,000 passengers down 67.9% compared to the corresponding period.

Sydney Airport had $2.06bn (A$2.9bn) of liquidity as of 30 June 2021.

During the first half of this year, it made a capital investment of $46.5m (A$65.2m) focused on critical projects.

Sydney Airport CEO Geoff Culbert said: “It was a challenging six months, but we were encouraged to see passenger traffic rebound strongly every time borders were open.

“From January to April, we recovered to 65% of our pre-COVID domestic passengers and in just over two months between late April and June, trans-Tasman traffic recovered to more than 40% of pre-COVID levels.

“We’re optimistic that this trend will repeat itself as the vaccine program gains momentum and we see a sustained easing of restrictions.”

In a recent development, Sydney Airport turned down a revised $16.81bn (A$22.8bn) buyout bid from a group of infrastructure investors, citing that it undervalues the airport operator.