Acsa is still smiling, despite drop in profits

STATE-OWNED Airports Company South Africa (Acsa) has reported a drop in profits due to weak economic growth and difficult trading conditions.

Acsa chief executive Bongani Maseko said the company, which manages the eight major airports in South Africa and one in Brazil and India, respectively, this year posted an 8.5 percent decline in after-tax profits of R1.6 billion for the year to March from R1.7bn in the corresponding period last year.

Acsa said it had achieved revenue growth of 8.9 percent to R7.7bn for the financial year to March, compared with R7.1bn during a similar period last year.

The company said despite the difficult operating conditions, it saw strong performances from its aeronautical and non-aeronautical divisions as well as its investments beyond South Africa.

However, the company warned that weak growth in the economy was expected to put a strain on passenger numbers.

Maseko said the company’s aeronautical revenue contributed 63 percent, or R4.9bn, of the total revenue and the non-aeronautical section contributed the remaining 37 percent.

“Acsa is steadily achieving its vision of being a world leading airports business by focusing on the customer,” Maseko said.

“Despite a volatile global and challenging local economy, Acsa has nonetheless shown good financial performance,” he added.

Maseko said cash generated increased by 4.1 percent to R4.6bn, up from R4.4bn in 2014. But he said the company would identify and secure new business opportunities in the rest of the world.

“We continue to ensure that both the funding and costs of borrowing are well managed,” said Maseko. “The resulting decrease in financing costs and debt levels has allowed us to continue to deliver on all investor commitments,” he added.

Acsa is 74.6 percent owned by the state and has become one of the few stellar performers among state-owned companies with a healthy financial footprint over the years. Its continued revenue performance is only comparable to other parastatals such as arms manufacturer Denel and transport and rail logistics giant Transnet.

On Monday, ANC national executive committee member Lindiwe Sisulu said state-owned institutions were not in a crisis.

Sisulu said the government had more than 700 parastatals throughout the country and most were doing well.

“The ones that are in your face are those that are probably in difficulty right now, nobody talks about Denel, which is doing extraordinary well, we could count many others.

“I think it is important that we don’t actually mix our numbers and take that which is in your face and make it the norm. It is not the norm,” she added.