Chief executive Jason Boyes. Photo: Supplied
Infrastructure investor Infratil has reported a 25 percent gain in underlying profit with revenue up nearly 28 percent.
However, the company made a bottom-line net loss, reflecting a number of one-time costs and a revaluation gain in the year earlier, but would still pay shareholders an improved interim dividend.
Key numbers for the six months ended September compared with a year ago:
- Net loss $206.4m* vs net profit $1.21b**
- Revenue $1.82b vs $1.46b
- Underlying profit $506m vs $400m
- Interim dividend 7.25 cents a share vs 7 cps
LI] *Current period hit by elevated amortisation relating to that transaction and negative $63 million of foreign exchange and derivative revaluations.
LI] **Included a large $1.06 billion revaluation of Infratil's initial stake in One NZ, following the acquisition of a further 49.95 percent stake to 99.9 percent.
Chief executive Jason Boyes said the strong underlying profit was primarily boosted by a 29 percent gain in underlying profit from data centres business CDC, Wellington Airport, and its increased stake in telecommunications company One NZ.
"With geopolitical tensions, persistent inflation, and high living costs shaping the investment landscape, Infratil will continue its disciplined approach to capital allocation and its focus on capturing long-term value across its investments."
Underlying profit guidance range for the year ending in March had been narrowed at the top end of the range to $960m to $1b, compared with previous forecast of between $962m and $1.012b.
"We remain dedicated to delivering sustainable value to shareholders and navigating this challenging environment with a focus on resilience, strategic growth, and disciplined capital management."
He said strong global demand for digital assets had seen its investment in CDC increase by about A$753 million over the six months since 31 March 2024, or about NZ$0.84 per Infratil share.
"CDC continues to experience significant growth in demand, driving an expansion of its development pipeline. Reflecting the increased demand signals, CDC's forecast build capacity for full year 2034 has expanded by over 1,000 megawatts since March 2024."
Boyes said One NZ's 9 percent increase in underlying profit was in line with expectations.
"Growth was driven by consumer mobile and a strong focus on cost management, with the benefits now flowing through from action taken on cost in the previous financial year."
Wellington Airport's underlying profit rose 25 percent with solid demand for travel continuing.