Atlas Arteria notches 7.4% rise in full-year profit
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The news: Toll road operator Atlas Arteria recorded a 7.4% rise in full-year net profit to $275.3 million, as toll increases and higher traffic growth boosted revenue.
The company also reaffirmed its second-half distribution guidance of 20 cents per share, and 2025 guidance of 40 cents per share.
The numbers: Atlas Arteria said 5.1% growth in proportionate toll revenue was driven by CPI and GDP-linked toll increases, with positive weighted average traffic growth of 0.6% compared to 2023.
The company also introduced a distribution policy, targeting a payout range of 90% to 110% of free cash flow.
The context: New CEO Hugh Wehby said the company is "actively responding" to near-term challenges in its portfolio. These include a new temporary tax in France that would impact its 30% owned toll group group APRR.
APRR is considering proposing to file a contractual compensation claim against the French state in response to the new tax, as well as other options.
The source: ASX
