The report results indicated a return on equity, which decrease by 0.2%, to 11.3% compared to 11.5% in the previous period, while capital expenditure was reduced by 31.3% to R893 million.
Bongani Maseko, Chief Executive Officer of Airports Company South Africa, said the company continued to be resilient, despite sluggish economic growth.
“While domestic passenger growth was subdued at 2.2%, the company reported strong growth of 6.1% in international departing passengers. For the first time, Cape Town International Airport reported a total of more than 10 million arriving and departing passengers, with King Shaka International Airport reporting a total of more than five million passengers for the first time,” said Maseko in a statement.
“Aircraft landing volumes were flat for domestic flights and up by 2.5% for international flights, indicating higher passenger utilisation of scheduled flights.”
Maseko noted that ACSA had managed to significantly reduce its debt levels over the past five years. Debt, primarily in the form of bond issues, stood at R9 billion at the end of the period, significantly down from R17 billion in 2012.
“The company’s gearing ratio has reduced from 59% in 2012 to 25% in the 2017 financial year,” said Maseko. “The overall financial position of the company therefore remains healthy despite regulatory uncertainty and difficult economic conditions.
“Operationally, we are adapting well to a new tariff regime from the regulator which required a 35.5% reduction for the 2018 financial year with increases in the following two years of 5.8% and 7.4%,” he added.
ACSA met 76% of its performance objectives in the period under review, which for the first time included additional measures such as reducing environmental impact, improving connectivity to the regions served, providing equitable access to safe airports, and leadership culture.
“We now have 17 measures of performance that underpin our three-pillar strategy to run airports, develop airports and to grow our footprint. This ensures that the drivers of performance are moving us in the desired direction and that all employees understand how they make a difference,” said Maseko.
The three-pillar strategy captures objectives of running airports efficiently and introducing innovations, improving capacity and infrastructure, and producing more impactful outcomes for the country.
The company has refined and enhanced its transformation strategy to focus on seven sectors which account for the bulk of its procurement.
These sectors are information technology, construction, property, retail, advertising, car rental and baggage handling.