Atlas Arteria lifts full-year profit on higher tolls, traffic
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The news: Toll road operator Atlas Arteria has lifted its full-year profit on the back of higher traffic and toll increases during the year.
The numbers: Net profit for the 12 months to December 2023 was up 6.3% to $256.3 million, in line with market expectations. Revenue was up 13.4% to $134 million. The company will pay a total dividend of 40 cents a share for the full year, and is guiding for a similar payout in 2024.
The context: The company said traffic rose on most of its toll roads in the US, France and Germany, except on its newest acquisition, the Chicago Skyway. It also benefited from higher inflation, with fares on some toll roads directly linked to consumer price indices while income was also bolstered by a stronger Euro and US dollar against the Australian dollar.
While traffic on the Chicago Skyway fell 7.2% from a year earlier, higher toll fares boosted the toll road’s revenues.
In 2022 Atlas' largest investor fund manager IFM Investors opposed Atlas' 66.67% purchase of Chicago Skyway for $2.9 billion. Atlas went ahead with the purchase which IFM said had wiped out $1 billion from the company as at the time had $3.4 billion in net assets.
The source: ASX announcement
