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BIACSA - Availability of the Audited Annual Financial Results for the year ended 31 March 2025
Airports Company South Africa SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/004149/30)
Issuer Code: BIACSA
(ACSA) or (the Company)
AVAILABILITY OF THE AUDITED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2025
PERFORMANCE HEADLINES:
• Positive performance as ACSA delivers strong annual financial results.
• Revenue up 13%, from R7.0 billion to R7.9 billion.
• Profit of R1.1 billion, increase from R 506 million in 2023/24.
• Gearing improved to 8%, from 17%.
KEMPTON PARK, Aviation Park, 25 August 2025 – Noteholders are hereby notified that ACSA has today reported its
audited financial results for the year to 31 March 2025, reporting solid profit, more than double of the previous year.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 3.8% to R2.9 billion (2023/24: R2.8 billion).
Revenue increased by 12.5% to R7.9 billion from the R7.0 billion reported in the previous financial year. Operating expenditure
increased by 19,2% to R4.9 billion (2023/24: R4.2 billion). The primary contributors to the increase in operating expenditure were
maintenance, utilities and cleaning costs. Credit losses on trade receivables were significantly lower, and the group's investment
property portfolio benefited from fair value gains.
These factors positively contributed to the after-tax profit of R1.1 billion, compared to a profit of R472 million in 2023/24
financial year.
The implementation of Innovate, Grow, and Sustain Strategy, as well as the revised Financial Plan, provided a structured management
approach and a means of resourcing the business in a way that has enabled the group to secure and safeguard its long-term sustainability.
Aeronautical revenue improved by 13.2% to R4.1 billion (FY2023/24: R3.6 billion). The 1% increase aircraft movements, 4% increase in number
of departing passengers and 10.1% tariff increase contributed to this performance.
Similarly, non-aeronautical revenue performance benefited from the improved trading conditions, increasing by 11,7% to R3.8 billion
(2023/24: R3.4 billion). The bulk of this income was derived from retail (R1.2 billion) and property rentals (R1.05 billion).
Employee expenditure increased by 30.6% to R2.1 billion (2023/24: R1.6 billion). This is largely due to internalization of airport security
personnels and filling critical vacancies to support the implementation of the corporate plan, as well as enhancement of employee rewards
and benefits. An incentive bonus of R134 million, based on 5.3% of company EBITDA, has also been provided for.
Capital expenditure remained focussed on airport maintenance, refurbishments and rehabilitation, and efficiency and technology-related projects.
A total of R861 million (FY2023/24: R568 million) was spent towards capital projects.
Restatement of the annual financial statements
Noteholders are advised of the restatements to the 2023/24 and 2022/23 figures in the 2024/25 annual financial statements, as outlined in note
G.14 of the annual financial statements.
1. Security costs
In 2017, the Company concluded agreements for security services for five years, which were subsequently extended to 30 June 2025 after a
review application. The fees payable were linked to an annual escalation of labour rates as per the Private Security Industry Regulatory
Authority (PSIRA). Due to the financial hardships caused by the Covid-19 pandemic, the increases were not effected.
Because of the increases not being effected, some of the service providers instituted arbitration proceedings for their recovery. The claims
are in respect of labour, equipment and training costs. The Company has defended the claim on the following bases:
a) a portion of the increases are not due to the service providers as they are based on a collective agreement which the Company is not
party to (as it does not form part of the agreements); and
b) the service providers are not entitled to claim increases for equipment and training costs, as the PSIRA rate and/or collective agreement
rate is only a cost of labour.
The increases were not accrued, although the group had the obligation to pay them. The cumulative impact of the restatement to 31 March 2024
resulted in increases in operating expenses (security R134 million), finance costs (R17 million), and provisions (R152 million).
2. Debtors
In the 2023 and 2024 financial years, financial relief was granted by the group to its customers through rebasing rentals to the 2019 levels, due
to the impact of lockdowns on operations. This affected mainly the retail portfolio. As part of the accounts reconciliations and corrections process,
the interest that had accumulated on outstanding customer debts relating to the escalated rentals before 2019 was
reversed to ensure that the accounts were corrected.
The restatement resulted in the reduction of the finance income and trade and other receivable balances of R32 million and R51 million for the 2023 and
2024 financial years respectively.
3. Tax liability
A historical difference occurred between the tax liability per the South African Revenue Services statement of account and the tax liability recognised
in the annual financial statement. The restatement resulted in the reduction of the income tax liability and an increase in retained earnings as at
01 April 2023.
4. Derivatives reserves
The restatement relates to cumulative fair value losses on an interest rate swap, which were recognised in other comprehensive income in line with hedge
accounting principles. The swap was settled in the 2023 financial year, at which point the losses should have been reclassified to retained earnings.
The restatement resulted in the reduction of the other reserves and an increase in retained earnings as at 01 April 2023.
5. Deferred tax liability
The restatement relates to the tax effect of the security costs and interest on debtors as outlined in paragraphs 1 and 2 above, as well as the resultant
reduction in tax assessed loss.
6. Property, plant, equipment and intangible assets
The group did not reassess the useful lives of property, plant and equipment as required by IAS 16 Property, Plant and Equipment, resulting in the useful
lives not reflecting their physical condition and economic use. This resulted in certain assets being depreciated over a shorter useful life than appropriate,
leading to those assets being fully depreciated while still in use and having a net book value of zero in prior periods. The assessment was done retrospectively,
to determine the revised useful lives as at 31 March 2023.
As a result, the carrying amount of assets were retrospectively adjusted by R141 million for the year ended 31 March 2023, and R124 million in the year ended
31 March 2024.
The annual financial statements have been audited by the group's auditors, Auditor-General South Africa, who expressed an unqualified opinion thereon. The Auditor
has drawn attention through an emphasis of matter paragraph in their report, to the restatement of prior period figures and amount of irregular expenditure.
The annual financial statements, including the audit opinion and key audit matters, can be found on the group's website at https://www.airports.co.za/business/investor-
relations/financial-information
For media enquiries:
Adele Nkomo – +27 72 644 7161 and Laurene Less +27664478665
Corporate Communications: Mediadesk@airports.co.za
Johannesburg
25 August 2025
Debt Sponsor: The Standard Bank of South Africa Limited
Date: 25-08-2025 08:59:00
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