Lower traffic drags on Atlas Arteria half-year profit

The news: Toll road operator Atlas Arteria has posted a drop in half-year profit on the back of lower traffic as well as higher taxes and costs.

The numbers: Net profit for the six months to 30 June was down 16.3% from a year earlier to $114.2 million. Revenue was up 9.6% to $69.6 million. The company will pay an interim dividend of 20 cents a share and is guiding for a similar payout for the second half.

The context: Atlas said toll revenue rose on all its toll roads, with inflation-linked toll increases helping offset the impact of lower traffic on roads operated by the group in France and the Chicago Skyway. The APRR toll road in France was affected by farmers strikes as well as a new infrastructure tax that has been challenged in court by toll road operators including Atlas Arteria. The group reaffirmed full-year distribution guidance of 40 cents a security, helped by improved free cash flow from its projects. The group owns and operates five toll roads in the US, France and Germany.