Auckland International Airport Limited (AIA)

[Lego_Man]

Auckland Council sell down underway. 11.154m at $8.15 and 25.890m at $8.11, with 66.053m now in the gentle hands of UBS under a block trade agreement at $8.10 - is the latter effectively an underwrite pending ongoing disposal action?

No SPH filing yet to indicate who may have purchased (if indeed that takes the buyer over the disclosure threshold, or they already are and need to notify the top up).

Interesting.

The block trade was widely distributed amongst local and Aussie fund managers and institutions, as well as some of the retail brokers. I don't think we will see a major move in SSH.

[ronaldson]

Closed yesterday at $7.81. Was $8.55 on 1 July being the start of ACC's financial year. May open at or over $7.90 this morning.

This pending sale has overhung the market in AIA shares for some time now, so likely the removal of this uncertainty will be positive from this point.

There you are. Trading at $8.10 this morning and solidly bid. Pricing coincides the block trade agreement figure, which has some logic.

And see Lego Man's post #1731 above. So much more stability from now on. I wonder how happy the ACC elected members are with the price fall since they debated selling down?

[Sideshow Bob]

Blackrock increased their holding by 1%

http://nzx-prod-s7fsd7f98s.s3-websit...845/402519.pdf

[BlackPeter]

Blackrock increased their holding by 1%

http://nzx-prod-s7fsd7f98s.s3-websit...845/402519.pdf

Nice guys. I suppose they did help out the City of the Most Amazing Mayor to get rid of part of their shares.

I guess - really, Auckland could hardly walk anymore with all these shares sitting in their portfolio ...

[Marilyn Munroe]

I recently transited thorough Auckland Airport.

I purchased a bottle of booze at duty free. There was only a small price advantage over paying full taxed retail at a bottle shop. The inconvenience of carrying through customs and in my case through security to make a connecting flight made me question the purchase.

Do others have an opinion on this. Will this retail strategy have a detrimental effect on the rental income AIA derives from duty free?

Boop boop de do
Marilyn

[Sideshow Bob]

I recently transited thorough Auckland Airport.

I purchased a bottle of booze at duty free. There was only a small price advantage over paying full taxed retail at a bottle shop. The inconvenience of carrying through customs and in my case through security to make a connecting flight made me question the purchase.

Do others have an opinion on this. Will this retail strategy have a detrimental effect on the rental income AIA derives from duty free?

Boop boop de do
Marilyn

Not bought DF for years.

Minimal cost benefit vs a large PITA (pain in the as$) in carrying through a terminal and then on to a connecting flight. Most of the time go carry-on so is an extra PITA.

Literally millions of people walk through your store every year on the way to/from flights, and while high priced real estate I guess they must get enough business.....

As for security when you can't take water on flights but can take 3 litres of duty free.......

[Jaa]

Not bought DF for years.

Minimal cost benefit vs a large PITA (pain in the as$) in carrying through a terminal and then on to a connecting flight. Most of the time go carry-on so is an extra PITA.

Literally millions of people walk through your store every year on the way to/from flights, and while high priced real estate I guess they must get enough business.....

As for security when you can't take water on flights but can take 3 litres of duty free.......

Airports have maxed out what they can charge duty free stores so that will limit future profitability. Same with charging airlines, they charge so much that no startup airline can get established. Just hurts future profitability.

The opposite of "always create more value than you take" method of business.

[Sideshow Bob]

https://www.nzx.com/announcements/426616

1H24 results: International travel demand sees Auckland Airport deliver improved half-year result as it invests for the future

Auckland Airport today announced its financial results for the six months to 31 December 2023.

Auckland Airport Chair Patrick Strange said: “Global demand for travel saw Auckland Airport deliver a solid result in the first half of the 2024 financial year, with continued growth in our international network as airlines expanded capacity and new entrants joined the market. North America has been a particular highlight, where more people are now travelling to and from Auckland than ever before. While the outlook continues to remain positive, we may see the rate of growth slow over the second half of the financial year as the local aviation industry faces into economic headwinds.”

Key performance data for the six months to 31 December 2023:

• Total number of passengers 9.3 million
• Domestic passengers of 4.3 million, and international passengers (including transits) of 5.0 million
• Revenue of $440.5 million
• Operating EBITDAFI of $310.2 million
• Reported profit after tax of $118.7 million
• Earnings per share of 8.05 cents
• Net underlying profit after tax of $145.7 million (1)
• Net underlying profit per share of 9.89 cents
• An interim dividend of 6.75 cents per share will be paid

[peat]

https://www.nzx.com/announcements/426616

1H24 results: International travel demand sees Auckland Airport deliver improved half-year result as it invests for the future

Auckland Airport today announced its financial results for the six months to 31 December 2023.


• Earnings per share of 8.05 cents
• Net underlying profit per share of 9.89 cents
• An interim dividend of 6.75 cents per share will be paid

8 cps for a HY, so the rough calc is 16 cps p.a. so that's a PE over 50


Wow , good times must be coming and yet CEO says its slowing

[mikelee]

What an interesting face off in the up coming negotiation. 2 ex-Air NZ vs 1 current LOL.