Infratil shares drop despite full-year earnings lift
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More news: Infratil shares dipped in morning trade despite the infrastructure investor posting an earnings uplift for the 2024 fiscal year.
Shares were down 5.02% to $9.83 by 12:11pm AEST.
Infratil posts 63% earnings increase, hikes final dividend
The news: Infrastructure investor Infratil exceeded guidance for the 2024 financial year, as it signalled further investments in digital infrastructure and renewable energy to address the growing demand for AI and data centres.
The numbers: Proportionate EBITDAF was $864.1 million, a 63% increase on the prior corresponding period. Infratil CEO Jason Boyes said that while a "substantial portion" of the EBITDAF increase can be attributed to the higher ownership stake in telco One NZ since June 2023, growth stood at 15.5% after adjusting for this change.
One NZ's normalised EBITDAF of NZD600 million ($550 million) was a 14.7% increase on the prior year, at the mid-point of its guidance.
CDC Data Centres — of which Infratil’s 47.99% stake was revalued 13%, or $448 million, higher in October 2023 — delivered a record 200 megawatts in new contracted capacity, its largest addition in a 12 month period, while achieving 25% earnings growth. Customer demand has also expanded CDC's development pipeline by over 400 megawatts in FY24.
In addition to $2.2 billion of direct investment, including $1.8 billion for the stake in One NZ, Infratil's share of capital expenditure undertaken by its portfolio companies totalled $1.7 billion for the year.
Infratil will pay a final dividend of 13 cents per share, a 4% increase on the prior year.
The company set its FY25 proportionate operational EBITDAF guidance at between $980 million and $1.03 billion, up 11% on the midpoint of its FY24 result.
The context: Infratil noted that its current portfolio was "heavily weighted" towards high-growth digital infrastructure and renewable energy businesses, with a specific focus on developing those critical assets.
The Wellington-based company said that both segments are converging to address the growing demand for artificial intelligence and data centres, with the essential need for sustainable energy solutions.
The group said "few if any" listed investment entities were exposed to both asset classes in the way Infratil was now.
What they said: Boyes said: "As we navigate a period where we are likely to see continued macroeconomic uncertainty, we remain excited about the investment opportunities within our existing portfolio — which has long been a feature of Intratil's investment approach."
The source: ASX announcement
