Changi Airport Group full-year net profit up 28% to S$849m

Singapore

CHANGI Airport Group's net profit rose 28.3 per cent to S$849 million for the last financial year, which saw Changi Airport hitting record highs for passengers, concession sales and air freight throughput, its annual report on Wednesday revealed.

For the year ended Mar 31, 2018, the group's total revenue rose 12.9 per cent to S$2.6 billion, with Changi Airport's strong performance contributing 94.1 per cent of revenue. Total operating expenses rose 17.7 per cent, largely due to the consolidation of its Brazilian airport's operating results and higher costs from the opening of Changi Airport's new T4.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were S$1.3 billion, up 8.4 per cent from the previous year. Net profit attributable to the shareholder was boosted by a valuation gain of S$98 million from the step-up acquisition of the Brazilian airport, Tom Jobim International Airport, compared to an impairment loss in overseas airport investments the year before.

In the 2017/2018 financial year, Changi Airport saw a record 63 million passengers, including the one billionth passenger since its opening on July 1, 1981, representing 6.1 per cent growth from the year before. Air freight throughput also crossed two million tonnes for the first time, growing 7.2 per cent year-on-year to 2.1 million tonnes of cargo.

Changi's concession sales also achieved a record S$2.5 billion, up 10 per cent from the year before. In terms of contributions to group revenue, Changi Airport's concession and rental income rose 6.6 per cent to S$1.26 billion. Changi was also voted Skytrax's World's Best Airport for the sixth consecutive time.

In their annual report message, chairman Liew Mun Leong and chief executive officer Lee Seow Hiang highlighted the upcoming Jewel Changi Airport which, along with T1's expansion, will increase the airport's capacity by another three million passengers per annum.

Strengthening its position as an air hub, Changi added 11 new city links and three airlines in the financial year. In Asia, its key markets of India and China saw year-on-year growth of 16.2 per cent - the fastest-growing of Changi's top 10 country markets - and 9.8 per cent respectively. Singapore has also become Qantas' largest hub outside Australia.

"The Changi East and T5 development plans are also on track," they added. Extension works at Runway 3 were completed, while more than half of the design work for tunnels on the Changi East site has been completed in preparation for construction to start. The T5 team has identified the functional and spatial requirements for the appointment of Changi East's master and civil consultants.