Transurban Group (ASX:TCL) announced strong traffic and revenue data for the December quarter 2015.
The company stated that toll revenue for the December quarter increased by 16.2% to $433 million, compared to the previous corresponding period (pcp) on a statutory basis. However, the proportional toll revenue, which the company finds to be more accurate reflection of its portfolio’s performance, increased by 17.9% from the pcp, to $454 million. The proportional toll revenue for the first half of FY16 increased by 18.4% from the pcp, to $900 million.
Sydney Traffic increased by 8%
Looking at the traffic and revenue data of the company’s operations in Sydney, the proportional toll revenue for the December 2015 quarter increased 14.2% to $192 million. Subsequently, the average daily traffic (ADT) increased 7.8% to 631,000 trips. The company also mentioned that the M5 South West Motorway continues to benefit from upgrade works which were completed in December 2014. The revenue on M7 increased by approximately 23% for the December quarter, which was partially due to an increase in the truck toll multiplier during the December quarter to 1.89 times the car toll. The company plans to increase the multiplier to three times the car toll by 2017.
Construction work to commence in Melbourne
For the December 2015 quarter, Melbourne toll revenue increased 6.6% to $155 million, while ADT increased 1.4% to 835,000 trips. The workday traffic increased 1% on average and weekend and public holiday traffic increased 3.7% on average. While the construction commenced on the CityLink Tulla Widening project in October 2015, major progress of this project is expected to take place at the end of the March quarter 2016.
Brisbane’s Legacy Way completes first half year of operations
The proportional toll revenue increased 9.3% to $67 million in Brisbane for the December quarter. Legacy Way completed its first half year of operation, following the commencement of operations in June 2015. The first of the stepped increases under the discount toll period occurred on 16 November 2015. Average workday traffic on the route increased 3.9% to 20,000 trips in the December quarter.
Toll revenue increased by 232.4% in the US
The proportional toll revenue in Northern Virginia increased by 232.4% to US$28 million, while ADT increased 137.1% to 84,000 trips for the December quarter. The 95 Express Lanes have been in operation for twelve months, while the company earned an average workday toll revenue of US$220,000 for the quarter.
TCL traded at $10.20 as at 11:10 AM (AEDT) and rose of 1.1% upon opening.
Author: Simon Herrmann
Jan 19, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.