Wellington International Airport Limited Analysis

Overview

Wellington International Airport Limited is one of New Zealand's three main airports, which caters for approximately 5 million passengers per year and 100,000 aircraft. In 1998 the Crown sold its shareholding, 66% to listed infrastructure company Infratil Limited and 34% to Wellington City Council, a specialist investor in infrastructure and utility assets.

Infratil is listed on the NZX and owns airports in New Zealand and Europe, as well as electricity; waste to energy; and port investments in New Zealand and Australia. Since Infratil became a shareholder the Airport Company has invested over $250 million in its facilities.

On 2 December 2008, Wellington International Airport was listed on the NZDX following an initial offering for $50 million fixed rate bonds with the ability to accept over subscriptions of up to $50 million. As at 22 December 2008, $50 million unsecured unsubordinated five year, fixed rate bonds were fully subscribed. The top three bondholders include FNZ Custodians (11.71%), TSB Bank (9.2%) and Westpac Institutional Bank (5.52%).

WIA derives its revenue through three different streams: passenger revenue, property revenue and aeronautical revenue. The investment statement indicates an upward graph trend in increasing revenue over the past 11 years from between $6-7m in 1997 to around $30m in 2008 in passenger and property revenue alone.

Performance

The following information was extracted from Wellington International Airport Limited's half year results, released on 25 October 2024:

Wellington Airport releases half-year unaudited results to 30 September 2024

Wellington Airport has announced its unaudited results for the six months ended 30 September 2024 with revenue growth of 18.6% to $90.9 million and EBITDAF before subvention payment up by 25% to $63 million from the same period last year.

“It’s pleasing to see solid demand for travel continuing in the face of the domestic headwinds this year,” says Wellington Airport chief executive Matt Clarke.

“International passenger numbers are up 12% from the same period last year, driven by new Qantas services, while domestic passenger numbers are down 4.4%.

“Over the last six months we’ve made good progress on a number of projects, including the Lyall Bay redevelopment with the addition of new beachfront outlets set to open soon, our new Airport Fire Station is taking shape and we’re progressing plans for the southern seawall upgrade. We’ve also started work on our expansion onto the site previously belonging to the Miramar Golf Club.”

“Over the same period we’ve stepped up our Airport Carbon Accreditation to Level 4+, and are supporting the community in a variety of ways including the 20th year of our Community Awards and our new major sponsorship of Predator Free Wellington.”