NZ Bus Profit Soars
Infratil’s had its most successful earnings year -with NZ Bus earnings leaping from $29m to $40m.
The earnings rise is attributed in its annual report, out today, to being “due to excellent control of costs and higher passenger income.” Interestingly it says contract income from regional transport agencies was down.
“Changes in the Auckland market are notable. Passenger growth for the year was almost 6% and over the last 5 years NZ Bus’ northern region passenger numbers have increased by 22%.”
The report says the transport minister’s requirement “that public transport agencies and operators work together more constructively and more commercially in being reflected in the NZ Bus dealings with Auckland Transport.
“This significant improvement in the regulatory environment prompted Infratil to support a material upgrade to the NZ Bus fleet which will appear on the roads from mid 2011.” A long-term export credit facility was arranged to provide funding for the new buses.
On Snapper, which is owned by infratil, the report says it “progressed its goal to become NZ’s leading provider of public transport payment systems.”
It says Snapper “is now accepted on Wellington’s buses, ferries and taxis and Auckland is to follow in 2011. Acceptance of the Snapper technology by Auckland Transport was an important endorsement.”
The company says its stand-out event for the year was its acquisition of Shell NZ which it has rebranded as Z Energy.
Its 50% holding in Shell gave it earnings of $55m. The company’s overall earnings were $460m – an increase of 27%.