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Airports Company South Africa (ACSA) has reported a decrease in revenue of 20%, while its profit for the profit for the year to March 31, 2018 plummeted by 58%, the state-owned entity said on Thursday.
This was "largely expected on the back of the reduction in aeronautical charges", Acting Chief Financial Officer Dirk Kunz said during the company's final results presentation.
The airports company met with a combination of a 35% reduction in airport tariffs it was allowed to levy, as well as a tough economic climate and lower traffic volumes.
It marks its 25th anniversary this year.
'Still solid'
EBITDA decreased to R3bn from R5bn for the previous comparative period. Profit for the year ended March 31, 2018 came in at under R1bn (R843m) compared to R2bn the previous year.
Return on equity declined by 4.2% from 10.9%.
According to Kunz, Acsa’s financial position remains "solid" despite the irregular expenditure and the tariff reduction.
Capital expenditure remained at maintenance capital expenditure levels, similar to the prior year.
Bongani Maseko, Chief Executive Officer of ACSA, said plans to mitigate the impact of significantly lower tariffs had largely been effective.
"Our performance shows resilience and a capacity to adapt to every different operating conditions. This is due to the commitment of all employees in staying true to our strategy and operating model," said Maseko. The new governance and operating model was introduced three years ago.
International investments
This sector showed improvement, with a positive contribution from Mumbai, and losses from Guarulhos International Airport in Brazil decreasing by R481m.
Part of ACSA's new operating model is to develop new businesses. The company currently has contracts to operationalise airports in Rwanda, Liberia and Zambia.
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