The infrastructure and development giant Transurban (ASX:TCL) released its September quarterly data for traffic and toll revenue today.
Transurban’s toll revenue on a statutory basis for the September quarter increased by 17.0% to $427 million compared to the previous corresponding period. Its proportional toll revenue increased by 18.9% to $466 million over the September quarter last year. CityLink, a subsidiary of the company generated 36% of the revenue.
The company reported its Sydney proportional toll revenue which increased 16% and also the Average Daily Traffic increased 10.3%. The Melbourne toll revenue increased 6.7% as the Average Daily Traffic increased by 2.4%. The Brisbane toll revenue increased 9.3% while the Average Daily Traffic increased 10.5%. North Virginia’s toll revenue showed strong improvements increasing 257% as the Average Daily Traffic increased 142%.
Transurban released its financial results in August 2015, where it announced an increase in revenue from ordinary activities by 61.7% while profits from ordinary activities decreased 248.0% after taxes. The statutory net profit decreased by 164.5%. The company’s statutory loss arose due to its significant transaction and integration costs related to its acquisition of Transurban Queensland. It also faced depreciation and amortisation charges regarding the consolidation of the Transurban Queensland acquisition, Cross City tunnel and the US assets.
According to Scott Charlton, the Chief Executive Officer, “This period we have seen benefits from our continued focus on operational efficiencies within our networks. This has been compounded by the expansion of our portfolio through asset investments and the successful integration of acquisitions.”
The CEO also commented on the outlook for 2016, “We expect FY16 to continue to deliver benefits for security holders from our network positioning and operational efficiencies. Transurban is expecting to deliver double digit year on year growth in distributions again this year.”
TCL’s share price is trading at $9.86 with a one year return of 25.61% and 15% return year to date.
Author: Imran Valibhoy
Oct 12, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.