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BIACSA-Financial Performance Highlights and Availability of Annual Report
Airports Company South Africa SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/004149/30)
Issuer Code: BIACSA
Airports Company South Africa SOC Limited: Financial Performance
Highlights and Availability of Annual Report
Airports Company South Africa today reported revenue of R7.1-
billion, EBITDA of R2.8-billion and profit of R227-million for the
financial year to 31 March 2019.
“The company contended with significant challenges in the period.
These challenges constrained revenue growth and also raised our
costs. In the circumstances, the company was sufficiently
resilient to be able to record another year of profits.
Importantly, the company was still in a position to reduce its
debt by more than R2-billion,” said Acting Chief Executive Officer
Bongiwe Mbomvu.
While revenue was 5.6% up on the previous year, the combined impact
of the weaker economy and cost pressures saw a reduction in EBITDA
of 4.6% and profit down by 58.9%.
“Such a major reduction in profit is very disappointing as much of
our increased costs had a direct impact on our bottom line. That
we were still able to report profits is testament to the effort
and commitment shown by our employees across the nine airports
that we own and manage in South Africa,” said Mbomvu.
“However, key positives remain. We have now produced a profit in
all but one of the 26 years since the company was formed. We also
received an unqualified audit and are proud of our record as a
well-run state owned company that has never needed government
support or guarantees.”
Debt repaid during the year was R2.3-billion, reducing overall
debt to R6.6-billion. More than R10.5-billion has now been repaid
over the past six years. The weighted average cost of debt now
stands at 9.13% with gearing at 18%.
Mbomvu said the weak South African economy affected passenger
numbers and viability of some local airlines, thereby impacting
revenue from commercial activities. While South Africa’s GDP
growth has remained at around 1% a year, Airports Company South
Africa grew departing passenger numbers by 1.3% to 21 118 264.
Airports Company South Africa also experienced some significant
cost pressures, specifically in relation to security services
which rose by more than 50% as a result of regulatory amendments
and heightened security measures implemented during the year.
In addition, new accounting standards resulted in a higher
provision for impaired debts while changes in the property
valuation model also had a negative impact on the profits reported.
The key operational challenge during the year was overcoming the
delay in the rollout of airport capacity expansion projects.
Currently capacity constraints are mostly felt at Cape Town
International Airport and O.R. Tambo International Airport.
During 2018/19 financial year, Airports Company South Africa grew
black business entrepreneurship as a share of operational and
developmental spend to 51%. Black business share of commercial
revenue generated now stands at 54% against a target of 51%
Mbomvu remains positive in terms of the outlook for Airports
Company South Africa in both the short- and medium-terms.
“We are filled with optimism for the modern, digitally driven
airport business we are developing and the important
transformative role we can play in South Africa,” she said.
“While we have faced challenges in dealing with reduced tariffs
affecting our aeronautical revenue, attrition in the global
airline industry and a tough global economic backdrop, we enter
2020 with a balance sheet that is in good shape and confidence in
our operating model, our global opportunities, our reputation and
our capabilities.”
The integrated annual report for Airports Company South Africa can
be viewed and downloaded at:
http://www.airports.co.za/business/investor-relations/financial- information
Johannesburg
17 September 2019
Debt Sponsor
The Standard Bank of South Africa Limited
Date: 17/09/2019 12:19:00
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