Passenger growth continues to drive earnings
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Morgans Financial Limited
Sydney Airport reported half-year results last week. The EBITDA result was in-line with our forecast. Passenger growth of 6.7% drove an 11% increase in revenues. We expected that cost growth would be greater than revenue growth in the period, but the front-ending of the guidance cost increase surprised us. EBITDA growth, combined with reduced interest costs on increased debt, resulted in cashflow growth of 18%. July traffic data shows international passenger growth continues to be very strong, while domestic growth has moderated somewhat. While dilutive, the August DRP raised $142m of cash that will help to improve the balance sheet and reduce interest costs. We continue to view Sydney Airport as a core portfolio holding, with international traffic growth a key thematic driving its growth outlook. Strong distribution growth over coming years and a solid and improving balance sheet are further attractions. Read the results update and get the analyst rating here: (VIEW LINK)
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Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.
![Morgans Financial Limited](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBck1DIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--02c872159e981f777dbc1837b14f2ecd373b491f/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/Livewire_Profile_200x200px.png)
Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.