This morning, Transurban Group (ASX: TCL) revealed its financial results for the six month period to 31 December 2017.
Transurban is the operator, or part operator, of some Australia’s most famous toll roads such as NorthConnex, CityLink and the West Gate Tunnel Project.
The results below are comparing against the six month period to 31 December 2016. Here are some of the main points:
- Proportional toll revenue increased by 10.5% to $1.176 billion
- Average daily traffic increased 1.4%
- Distribution increased by 5.66% to 28 cents – this is like a dividend
- Proportional day to day trading, or proportional EBITDA, increased by 11.6% to $911 million (What the heck is EBITDA?)
- Profit from continuing operations was up 280.2% to $331 million
Transurban attributed the performance to improving the experience for customers, with current projects in all regions.
Scott Charlton, Transurban’s CEO, said “In the past five years Transurban has invested more than $16 billion into improving urban road networks across Australia and the Greater Washington Area to give people more transport choices.”
In Sydney proportional toll revenue increased by 9.8% to $476 million and average daily traffic increased by 2.9%. This led to EBITDA growing by 10.3%. Construction of NorthConnex is more than 50% complete and expected to finish before 2020. The business recently launched its LinktGO GPS application in NSW.
Mr Charlton commented “The recent rollout of our smartphone app, LinktGO, in Sydney allows casual road users to receive real-time notification of toll trips and provides a simple and convenient way to pay for their trip using their smartphone.”
In Melbourne proportional revenue increased by 14.2% to $388 million. Average daily traffic decreased by 1%, this was affected by the CityLink Tulla Widening works. The increase of revenue led to EBITDA growing by 17.5%. The West Gate Tunnel Project has reached contractual close and construction has commenced.
“After nearly three years of planning, design and community engagement, we have reached contractual close on the West Gate Tunnel Project which will provide Melbourne with a critical alternative to the West Gate Bridge,” Mr Charlton added. “Construction is officially under way on this project and it is forecast to open to traffic by 2022, when it will transform how people and goods are moved around the city.”
Management also said that the Brisbane and Greater Washington Area toll roads were improving with upgrades and extensions on track or ahead of schedule.
Transurban confirmed its guidance of 56 cents per share for its 2018 financial year.
The Transurban share price is essentially flat after the report, it’s currently up 0.04%.
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