Atlas Arteria shares slip as new French tax weighs on profit
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More news: Atlas Arteria shares retreated after the toll road group reported a 33% drop in first-half profit, dragged down by a new temporary supplemental tax for large companies in France.
Shares were down 2.2% to $5.26 at 12:20pm AEST, having gained 10.7% since the turn of the year.
Atlas Arteria profit tumbles 33% as new French tax hits bottom line
The news: Toll road operator Atlas Arteria posted a 33% decrease in first-half net profit to $73.3 million, from $109.2 million in the prior corresponding period, after being required to pay a new "temporary supplemental tax" of $57.8 million by the French government.
The numbers: Revenue rose 11% year on year to $77.5 million, missing consensus estimates of $94.0 million, according to Visible Alpha data. Proportional toll revenue was up 8.1% to $954.5 million.
The company will pay an interim dividend of 20 cents per share, flat year on year, and in line with forecasts.
The context: Atlas Arteria reaffirmed its full-year distribution guidance of 40 cents per share for 2025, and said it is targeting future distributions of at least this size, supported by growing free cash flow.
The company said it is working to resolve the tax challenges in France, and looking ahead as seven of the country's major motorway concessions approach their expiry from 2031. The new tax introduced by the French Parliament in February sees Atlas Arteria's part-owned APRR Group pay a higher levy aimed at large companies.
In North America, Atlas Arteria is moving ahead with a new rate case application for its Dulles Greenway toll road, while continuing to progress federal litigation claims after the Supreme Court of Virginia blocked its latest rate hike last month.
The source: ASX
