AUSTRALIA. Retail was the star of the show as Sydney Airport today unveiled a strong set of 2017 financial results. Retail revenue rose by a vibrant +12.7% year-on-year to A$331 million, easily outstripping passenger growth of +3.6%; (international +7.2%) and all other income sectors (see chart above).
The fine retail performance was driven by the completion of new fashion, specialty and food & beverage offerings through 2016 and 2017 in T1 and the revamped casual dining precinct in T2. Property and car rental rose +8.4%, while car parking and ground transport increased by +2.2%, ahead of domestic passenger growth.
Duty free delivered strong growth with standout performances across the core categories of liquor, perfume and cosmetics, the airport company said.
All three terminals are now fully leased with continued strong retailer demand for space, it noted. “We are delivering a superior passenger experience with continued focus on value, range and choice, proven via strong retail sales, passenger satisfaction scores and positive sentiment.”
Chief Executive Officer Geoff Culbert said, “Sydney Airport today announced strong results for the full year 2017, underpinned by record passenger numbers and excellent international passenger growth.
“We actively developed new airline routes and new services and supported our airline partners as they delivered significant capacity increases and robust load factors.
“Over the year, international passenger numbers increased by over 1 million, up +7.2% on the 2016 year. This result reflects management initiatives, investment, positive macro tailwinds from increasing global tourism and travel, our proximity to Asia, larger and more fuel-efficient aircraft and the continued liberalisation of air rights.
“The inbound travel market has grown +8.0% year-on-year, with excellent performance from a diverse range of major Asian markets, including China, India, South Korea and Vietnam, in addition to a solid performance from the United States and the United Kingdom. Australian outbound travel remained robust, growing nearly +6% over the year.
“EBITDA grew +8.3% on total passenger growth of 3.6%. Key drivers of the result were international passenger growth of 7.2%, returns on capital investment in aviation infrastructure, and a strong contribution from retail and property with the full complement of shops now open in newly refurbished T1 and T2 and our two new hotels trading ahead of expectations.
“We see exciting opportunities across our four businesses and have a significant investment program underway that will deliver both efficient infrastructure capacity, an improved customer experience and service excellence for our customers.”
